Despite falling revenue and increased competition from other casinos in the region, Caesars Entertainment recently gave a vote of confidence to its Windsor casino saying it will stay open.
Officials for Caesars say the company “remains committed” to the casino, even as speculation is mounting that it is likely to close.
“I’ve never heard anything like that before,” Gary Thompson, corporate spokesman for Caesars’ head office told the Windsor Star. “We remain committed to that market. We recently invested a substantial amount of money on the property. I don’t see any changes there other than expanding the offerings we have in the non-gaming arena.”
Caesars Windsor has seen a drop in revenues of nearly 60 percent in the last decade. Tighter restrictions to cross the Canada-U.S. border and non-smoking legislation across Ontario are seen as some of the principal causes for the decline.
In 2008, the casino’s yearly revenue was $228.9 million. For 2012—the latest figures released by Canadian regulators—revenue had fallen to $172.3 million.
Caesars Windsor once had a monopoly on casino gaming in the region, but is now in direct competition from three Detroit casinos—Greektown, MotorCity and MGM Grand – which opened in 2001. Casinos have also opened in nearby Ohio.
Caesars officials, however, said they are used to competition.
“That is not a phenomenon isolated to Caesars Windsor,” Thompson told the paper. “Gaming has expanded to many new markets. It’s something we have experienced in many markets. However, what we have also seen is our non-gaming amenities—restaurants, shopping and entertainment—have become more and more popular.
“We are taking a close look at which of these amenities are most popular among our customers and working to implement more of those,” Thompson said.
Thompson also pointed to a new four-year labor deal with Unifor Local 444 members, the casino’s main unions, as a sign the casino is not closing.
Caesars officials were responding to a report in the Detroit News that speculated that the Detroit market cannot support four casinos and one may close.
Alex Calderone, senior vice-president at Fine Point Group, a Las Vegas-based gaming management and consulting firm, told that paper that he believes Caesars Windsor is the most likely to shut down.
A spokesman for the Ontario Lottery and Gaming Corporations, which owns the casino, but contracts with Caesar to operate it, told the Windsor Star that while all Ontario casinos have been struggling in the face of new competition, the OLG does not expect Caesars Windsor to fold.
“We have been clear about the challenges and that’s why we are undertaking a modernization program and trying to make changes,” OLG spokesman Tony Bitonti told the paper. “Caesars is also looking at the problems and seeing what they can do.
“What they are finding is there is a significant niche with the entertainment offerings. Other venues in the Detroit area don’t have that—being able to bring in big-name acts,” Bitoni said. “They are filling 5,000 seats, not once a month, but weekly. The theater is filled, the hotel is filled and there is increased gaming business, as well. That’s helping to make sure the business remains stable. The numbers don’t lie, but they are working on it.”
