The Casino Queen riverboat in East St. Louis, Illinois has laid off employees and reduced hours of operation due to falling revenue. Illinois Gaming Board figures indicate adjusted gross receipts for electronic gaming devices fell by more than 13 percent from January through November 2014 compared to that same period in 2013. However, adjusted gross receipts from table games increased by 2.5 percent.
Still, casino officials laid off about 20 workers, including managers, earlier this month. Casino Queen President and General Manager Jeff Watson said the number of casino employees has dropped by one-half, from 1,200 to 600, since the current casino opened in 2007, replacing the original that opened in 1993.
In addition, the Casino Queen recently cut its hours of operation from 22 hours to 20 hours, closing at 4 a.m. instead of 6 a.m. “Eventually, we may not stay open even that long on a daily basis,” Watson said.
Also located in the St. Louis Metro East market, adjusted gross receipts from electronic gaming machines at the Argosy Casino Alton dropped 7.9 percent from 2013 to 2014. Table game receipts declined by 13 percent.
Watson blamed the revenue drops on the proliferation of video gaming devices in establishments with a liquor license that may apply for up to five video gaming terminals in Illinois. He said, “They have put a video gaming machine in every bar and restaurant and VFW hall with a liquor license, and the dilution rate is showing. And that’s why this has impacted casinos and their revenue. There is a direct correlation between the two.”
Watson added, “We are by far the most saturated gaming area in the country. Adding more gaming spots in here keeps cutting a pie that already has been cut into many pieces and fewer slices. The impact here is like any business. We have to react to that with less employees and have to adjust by opening less hours a day.” Since Illinois legalized video gambling outside casinos in 2009, more than 3,200 gaming parlors were operating in the state at the end of 2013, according to state gaming board figures.
Illinois Casino Gaming Association Executive Director Tom Swoik said,
“Overall, the admissions are down. The people have got to be going somewhere to play, and video gaming revenue is up. That’s got to be where they’re going.” He noted in addition to statewide declines in riverboat casino revenue and admissions, the 2008 smoking ban resulted in an initial loss of 15 percent of Illinois casino business.
Illinois Gaming Machine Operators Association President Michael Gelatka stated, “I think that there are additional players that you’re getting who would have otherwise gone to casinos in Missouri who have begun to play back in Illinois. I think there are a lot more players in Illinois as a result of it, but I think there are a lot of smaller businesses that are benefiting, even if casinos have been hurt to some extent.”
