Mountaineer casino profits continue to slide

Information provided by Reno, Nevada-based Eldorado Resorts Inc., which now owns the Chester-based casino, shows Mountaineer’s adjusted earnings from July 1 through Sept. 30 at $4 million. Adjusted earnings for the same quarter in 2015 were $6.4 million, and $9.1 million in 2014.

For several years, Mountaineer and other West Virginia casinos have watched profits slide as new facilities opened, especially the Rivers Casino in downtown Pittsburgh and The Meadows Racetrack and Casino near Washington, Pa. Now, the Hollywood Gaming Mahoning Valley Race Course that opened in Youngstown, Ohio last year also affects Mountaineer, which remains Hancock County’s largest employer.

Total revenue for the property fell from $40.4 million in the third quarter of 2015 to $36.7 million during the same three-month period this year. Company officials said the Hancock County indoor smoking ban enacted July 1, 2015 continues to impact business negatively, despite construction of the outdoor gambling area that features both table games and slot machines.

The company’s Erie, Pa. property, Presque Isle Downs & Casino, also saw earnings dip slightly, as the track collected $5.5 million from July 1 through Sept. 30, down from $5.6 million during the same period in 2015.

Conversely, profits at Eldorado’s Scioto Downs, near Columbus, Ohio, continued to grow. That track earned $14.7 million from July 1 through Sept. 30, which is slightly higher than the $14 million collected during the same quarter in 2015. Construction on the 118-room Hampton Inn Hotel at the property continues, as the hotel is now expected to open early next year.

Gary Carano, Eldorado chairman and CEO, said the company continues focusing on growing its operations in Nevada, Ohio and Louisiana, while also maintaining as much business as possible in West Virginia.

“Since the middle of 2014, we have successfully executed a multi-pronged growth strategy comprised of organic growth through targeted return focused facility enhancement projects, a $10 million cost savings program and refined operating management disciplines. These initiatives have been complemented by growth through accretive acquisitions which expanded our scale, operating efficiencies and margins,” he said. “Our three largest contributing operations remain key catalysts for our business, as adjusted earnings before interest, taxes, depreciation and amortization increased year over year at all three with adjusted (earnings before interest, taxes, depreciation and amortization) for our Reno Tri-Properties up 7.1 percent, Eldorado Scioto Downs increasing 4.4 percent and Eldorado Shreveport rising 13.6 percent.”