Gambling continues to sizzle with another stellar rise in South Florida. Racino 2013 numbers compared to 2012 were up an astonishing 21.6%. That translates to over $6.8million in NSR, and for the state almost $2.4 million in additional tax revenue, not including Tribal fees.
The extraordinary August opening of Hialeah Park’s new racino was indeed a harbinger of things to come. Hialeah’s individual contribution in October was $4.5 million of the $6.8 million increase, which was a mighty impact for that stunning increase over 2012. (Removing Hialeah’s action, NSR was still up 7.5%).
Whether it was the improving economy, a stronger marketing posture, or better acceptance by the citizens, it was good news all around.
The state assembled a gaming legislative committee to crisscross Florida seeking input from anybody and everybody about gambling today, and possible expansion. Their cursory look at four key geographic areas may well provide some insight relevant to an alphabet of issues, gray areas, hijinx and “clever” interpretation of laws.
In the committee’s raw data grassroots findings – unclouded by lobbyists, politics and morals – there is some optimism among gambling industry insiders. The town hall-style meetings were packed, vociferous and enlightening. Florida government often works in strange ways; these meetings have been no exception.
The individual NSR for October was good in all areas and extraordinary in others. As usual, Isle at Pompano was the leader on the revenue side, increasing by more than $900,000.
However, the percentage leader was, surprisingly, Mardi Gras (Hollywood), up a handsome 12.4%. Isle at Pompano was up 10.8%; Calder Racetrack and Casino, up 8.8%.
Calder’s live thoroughbred racing struggles with direct competition from Gulfstream Park but did not hurt their gaming business. Gulfstream and Casino Miami Jai Alai were each up 4.6% in NSR and Magic City (Flagler) was up 2.2%. These October returns, with Hollywood up top and Flagler near bottom, are contrary to the usual pecking order…with no simple explanation.
The 2013-2014 Florida fiscal year got off to a tremendous start and October outdistanced September by a hefty 5.1%. While these numbers paint a rosy picture, imagine what the winter season may bring. Adding Hialeah sparked a tremendous impact. These numbers partially predict potential gaming revenue driven by intelligent expansion.
Next year South Florida becomes the worldwide gateway for the FIFA World Cup and two years later the Olympics. A massive audience headed for Brazil will go through this area and cannot help but jumpstart a considerable bump to an already flourishing tourism and associated industries.
Pari-mutuel scofflaws: One area of the Spectrum gambling report that did not get much media attention was the section on flagrant rule violations among the pari-mutuels. The conclusion being, a regulatory body with backbone and not the present Division of Pari-mutuel Racing, which serves at the pleasure of the governor, is critical to the success of any gambling, let alone expansion.
Among those facilities called out were Pompano Park (overstated purses); horse and dog tracks understating revenues from simulcasting and consequently not taxed; Sarasota Kennel Club using substandard (and dangerous) equipment housing the greyhounds; and the Florida Division of Pari-mutuel Racing itself, which is supposedly self-sufficient, existing on fines and fees. The report concluded the Division required a $4 million tax payers’ supplement annually.
CRC poker room: Bloodhorse reports Calder Race Course has requested permission to move their poker room from the main six-story racing building to the newly built, adjacent casino building – a mere 200 feet away. The poker room was supposed to be relocated there originally, but logistics prevented it.
Long the bottom or near bottom producer in the racino poker derby, Calder’s 29 tables produced gross receipts of $740,000 from July-September. As a gauge, during the same period recently-opened Hialeah Park and Casino produced $1.1 million, Gulfstream $1.3 million and leader Pompano Park (Isle Capri) $3 million. At the outset, it appears Calder will initially downsize to a more palatable 14-15 tables.
Gulfstream: Several years back the Big G added substantial retail, night clubs and restaurants surrounding the race track in an effort to attract a new audience and compete with wildly successful Aventura nearby. That plan has apparently fizzled so now GP is planning to install a giant statue (11 stories high) of winged Pegasus stretching 220 feet stomping the dreaded dragon.
Designed and built in China, this will be the centerpiece of a new attraction called “Pegasus Park,” touted to be the biggest theme park south of Orlando, featuring thrill rides, waterpark and a hotel. Gulfstream’s highly touted expansion of the race track facility to accommodate Breeder’s Cup, which can generaate crowds over 40,000, has yet to break ground.
Baird Thompson and William Hutchinson bring a combined 80 years of gaming marketing and administration experience to Gaming Today. Contact them at CasinoDoctors@GamingToday.com.
Original story from Gaming Today.com http://www.gamingtoday.com/industry/article/44466-Another_stellar_rise_in_South_Florida_gambling_revenue
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