Dan Gilbert, owner of the Horseshoe Casino Cleveland last week once again reaffirmed his plans to build a Phase II to the casino that currently is confined to the old historic Higbee building, once home to a department store.
But he didn’t say when and he didn’t supply any details. A second downtown casino has been part of the plans since 2009, when the voters were sold on amending the state constitution to allow four casino resorts in Ohio’s largest cities.
Last week, when Gilbert, who is also owner of the Cleveland Cavaliers, said, “We are committed to build Phase II. Phase II is something we still plan on developing,” it was something he had said many times since the Horseshoe opened in May 2012. He added, “We paid $85 million for the land so we’re not going to watch weeds grow on it.” The land he referred to was land along the Cuyahoga River.
He noted that when the development will occur is market driven and added that it might include residential units. “Regional gaming across the United States has serious challenges not just in Cleveland or Cincinnati, but across the United States,” said Gilbert.
If someone wanted to challenge his assertion that person might be pointed to Atlantic City, where the $2.4 billion Revel casino closed this year. Las Vegas continues to be a draw as a destination, but it may be an anomaly rather than the rule.
Currently commercial gaming in the U.S. has 513 casinos, while Indian gaming has 466, nearly equal.
Some experts believe that gaming in the United States, and particularly in Ohio is nearing the saturation point. They add that Gilbert may be finding it hard to get financing for an additional gaming venture. That might point to the possibility of building homes on the property, although retail and a hotel are also a possibility.
Gilbert has built other downtown developments, including in Detroit’s Woodward Corridor.
The Horseshoe Cleveland has consistently maintained a lead share of gaming revenue in the state with an average of 15.5 percent.
