For the second half of 2014, total revenue at the Kansas City area’s five casinos fell 1.1 percent to 7.5 million compared to the same period in 2013. For the entire year, total revenue for the market was 9.2 million, down 2.7 percent from 2013. But Tom Cook, general manager at Harrah’s in North Kansas City, isn’t concerned. He said, “A lot of economic indicators are positive, showing people’s lives are improving. We’re off to a good start this year.”
Harrah’s revenue fell just 2.2 percent to $87 million for the second half of 2014 compared to 2013. Total 2014 revenue of $173.1 million was down 2.5 percent. The casino has the most table-game revenue in the market. It cross-promotes with parent Caesars Entertainment to attract more high-stakes players. A new steak house and renovations at 200 hotel rooms have attracted players, and the Voodoo Lounge brings in nationally know performers. Despite Caesars’ recently Chapter 11 bankruptcy filing, Cook said, “It’s pretty much business as usual.” He added the employee count has remained steady at 900.
Although Ameristar continues to lead the market, as it has for the past 12 years, it posted the largest drop in revenue for the second half of 2014 versus 2013, with revenue of $95.6 million, down 3.9 percent. For all of 2014, revenue dropped 5.4 percent to $193.7 million. General Manager
Rod Centers, who took over in August, said Ameristar offers the “freshest and most exciting” slot machines. He said the Star Pavilion has reopened and offers nationally known entertainment, and added customer ratings of casino staff have increased 6 percent, with the workforce remaining steady at 1,125. In addition, Ameristar’s new Marketing Director Marc DeLeo said the casino offers a special promotion each weekend, such as giving away a Cadillac Escalade.
Isle of Capri is the area’s smallest casino but was the only one in Missouri to post an increase from its 2013 second half, taking in $37.7 million, up 1.6 percent. The casino had a gain of nearly 16 percent for December. For 2014, revenue was down 2.1 percent at $76.2 million. It maintains a 10 percent market share by emphasizing value and the fact that its slots typically pay out slightly more than the competition. Jill Alexander, senior director of corporate communication, said employee count increased by 30 to 396 in 2014. She added Isle will continue “to focus on the overall entertainment experience” and will offer more food promotions.
The Argosy in Riverside has been the most affected by the 2012 opening of Hollywood Casino at the Kansas Speedway. It posted a revenue drop of 2.4 percent to $68.7 million from the 2013 second half. For 2014, revenue fell 4.6 percent to $141.2 million. Penn National owns the Argosy and operates Hollywood in a partnership with the Kansas Speedway Development Corporation.
General Manager Aaron Rosenthal said Argosy and Hollywood benefit from cross promotions and share the Marquee Rewards program. “We’re excited about a renewed focus on reinvesting in our customers,” he said. Rosenthal added the employee work force has stayed steady at 750 “and we’re hiring.” On a cautionary note, Rosenthal said the economy still is shaky “but it’s time to drive some more business. I’m hopeful we’ve settled into the new normal and can get the whole market growing.”
The opening of Hollywood in February 2012 helped boost the market to record annual revenue of $759.1 million, but that fell to $739.3 million in both 2013 and 2014. At Hollywood, revenue was up 4.9 percent to $68.5 million for the second half of 2014, and revenue for 2014 increased 2.9 percent to $134.9 million. General manager Bob Sheldon said, “The fourth quarter was pretty strong, with good weather and a good calendar. Gas prices have helped, and consumer confidence is a little better. We’ve seen the benefits of that.”
Being located on the second turn of Kansas Speedway and near Sporting Kansas City’s soccer stadium, in the western Wyandotte County growth corridor, definitely helps Hollywood’s bottom line. Like last year, the speedway will offer its first big race weekend of the season in May. The casino promotes race weekends, Sheldon said, adding, “Sporting’s attendance and variety of games have been strong. We’ve gotten some of the benefit of that” in increased casino traffic. He noted employment has been “pretty steady” at 700, down about 20 workers from 2013. Sheldon also said Hollywood could start construction soon on a 248-room hotel.
