Casino revenue plunges

Loonie, border 'fatigue' blamed for 13.6% dip

It was the biggest drop since a strike last spring closed the casino and hotel for 41 days.

Gross gaming revenue during the three months ending last year was $112 million, down from $129 million during the same period the previous year.

"The single largest (factor) would be the dramatic decline year over year in the exchange rate," said casino vice-president of corporate affairs Keith Andrews. "I think the exchange rate year over year is probably off close to 11 per cent. For the gaming customer, that's huge."

People have fixed budgets for entertainment, he said. Eighty per cent of the casino's customers are Americans, and when they exchange their money, they get less -- and play less. The number of people who went to the casino increased slightly to a daily average of 12,790 during the quarter, compared to 12,764 last year.

Andrews also cited "border fatigue.

"There's a mood that exists that makes it a challenge to attract people across the river when there are three casinos in their backyard," he said.

"What's even more difficult is the unpredictability."

He cited the day in October when 230 federal government workers slowed traffic coming out of the tunnel for almost three hours.

"I can tell you, based on the number of complaints we got from customers calling in stuck in traffic, it impacts our operation," he said.

"I think we've done an admirable job, a great job, in terms of this market," he said.

Revenue plunged 46 per cent during the first quarter because of the strike. It rebounded during the second quarter, but was still down 2.2 per cent. In mid-January, 201 casino employees, including 164 full-time workers, were laid off because of declining business.

The casino has opened a poker room to try to lure back business. It also opened Cache, its upscale restaurant, to the public.

It had been reserved for the best patrons. Both the poker room and the restaurant are performing well, Andrews said, although he wouldn't provide numbers. Only four full-time employees are still laid off after 138 were called back part time, he said.

The casino is "very, very heavily" into promotional events and is aggressively marketing bus trips, he said. Last Friday was the busiest day ever for bus trips to the casino, he said.

The Ontario government has also announced $400 million for a 100,000-square-foot convention centre, 5,000-seat auditorium, 400-room hotel and major casino renovation to boost business.

Casino Windsor's problems are contrasted with growing revenues at the other two commercial casinos in Ontario, Casino Rama and Consolidated Niagara, which includes the original Casino Niagara and the new Niagara Fallsview Casino Resort. Revenue at Casino Rama, which has few American customers, grew to $134.2 million from $129.1 million. Revenue at Consolidated Niagara increased to $154.4 million from $130.5 million after Fallsview opened.
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