Iowa's casino revenue remained mostly flat in 2007
By Deb Nicklay Lee News Service | Posted: Friday, April 18, 2008
NORTHWOOD -- Gaming revenues at Iowa's casinos and racetracks increased only slightly in 2007, prompting casino officials to look to other sources of revenue.
A souring economy, higher costs and an extended stretch of bad weather all combined to dampen the numbers, casino officials told the Iowa Racing and Gaming Commission on Thursday, during the commission's April meeting at Diamond Jo Worth Casino.
Casino officials appeared before the commission to answer questions about their 2007 annual audits and give ideas about future strategies.
Most revenue increases -- if there were any -- fell between 1 percent to 3 percent at the 14 operations.
Commission chairwoman Kate Cutler said the commission has recognized that higher gas and food costs are impacting operations.
"This is challenging the industry, but they are working hard to identify what they need to do," she said. After a particularly nasty winter, she added, a good summer could trigger positive changes.
Casinos recognize that "the key to gaming growth is growth of non-gaming amenities," said Todd Moyer, general manager of Dubuque Diamond Jo Casino.
Some said they would sharpen focus on direct mailings to key populations. Others said they had plans to build more hotels and restaurants.
Still others said they would continue to improve entertainment. At Wild Rose Casino in Emmetsburg, for instance, outdoor summer concerts are planned with major artists, including Lee Greenwood on July 5.
There were at least two success stories.
Diamond Jo Worth recorded $80 million in revenue in 2007, according to general manager Jesus Aviles. The casino's $20 million expansion project, which doubled its original space, opened in April 2007. Much of its patronage comes from Minnesota, said Aviles.
Riverside Casino and Golf Resort in Washington County was the other big achiever of the year. It posted $101 million in gaming revenue, said general manager Joe Massa.
At Riverside, its PGA-grade golf course is proving to be a major draw -- and that positively affects the operation's hotel and restaurant sales, he said.
While Aviles said Diamond Jo Worth's explosive growth in gaming revenue cannot continue to climb forever, he said expanding the amenities will help keep the revenues healthy.
"In this area particularly, we will see significant growth in the next five years," Aviles said, adding that plans are in the works for more development near the casino.
"And, as that footprint increases, so will our business. The best is yet to come."
Deb Nicklay can be reached at deb.nicklay@globegazette.com
A souring economy, higher costs and an extended stretch of bad weather all combined to dampen the numbers, casino officials told the Iowa Racing and Gaming Commission on Thursday, during the commission's April meeting at Diamond Jo Worth Casino.
Casino officials appeared before the commission to answer questions about their 2007 annual audits and give ideas about future strategies.
Most revenue increases -- if there were any -- fell between 1 percent to 3 percent at the 14 operations.
Commission chairwoman Kate Cutler said the commission has recognized that higher gas and food costs are impacting operations.
"This is challenging the industry, but they are working hard to identify what they need to do," she said. After a particularly nasty winter, she added, a good summer could trigger positive changes.
Casinos recognize that "the key to gaming growth is growth of non-gaming amenities," said Todd Moyer, general manager of Dubuque Diamond Jo Casino.
Some said they would sharpen focus on direct mailings to key populations. Others said they had plans to build more hotels and restaurants.
Still others said they would continue to improve entertainment. At Wild Rose Casino in Emmetsburg, for instance, outdoor summer concerts are planned with major artists, including Lee Greenwood on July 5.
There were at least two success stories.
Diamond Jo Worth recorded $80 million in revenue in 2007, according to general manager Jesus Aviles. The casino's $20 million expansion project, which doubled its original space, opened in April 2007. Much of its patronage comes from Minnesota, said Aviles.
Riverside Casino and Golf Resort in Washington County was the other big achiever of the year. It posted $101 million in gaming revenue, said general manager Joe Massa.
At Riverside, its PGA-grade golf course is proving to be a major draw -- and that positively affects the operation's hotel and restaurant sales, he said.
While Aviles said Diamond Jo Worth's explosive growth in gaming revenue cannot continue to climb forever, he said expanding the amenities will help keep the revenues healthy.
"In this area particularly, we will see significant growth in the next five years," Aviles said, adding that plans are in the works for more development near the casino.
"And, as that footprint increases, so will our business. The best is yet to come."
Deb Nicklay can be reached at deb.nicklay@globegazette.com
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