May Showed Decrease in Gambling Revenues

"We are seeing a bit of a slowdown industrywide" said Merrill Lynch gaming analyst David Anders , referring to the general plateauing of gambling revenues in May.

Riverboat revenues were up just 1.2 percent locally from May 2005, at $57.8 million. The gain was stronger than the 1 percent average growth statewide at Missouri's 11 riverboat casinos. May still ranked as the market's 12th largest month on record.

Other markets had similarly unexciting May performances. St. Louis was down 0.6 percent, Detroit was up 1.1 percent, Indiana was up 1.4 percent, and Atlantic City was up 2.9 percent. Results are more visible in Illinois, up 5 percent, and Iowa, up 7.5 percent. Mississippi hard hit showing an 18.3 percent decrease in May, as coastal casinos continue to renowations and recovery from Hurricane Katrina.

Ameristar Kansas City Casino and Hotel slipped about one-third of a point in market share with its $21.1 million in May but it still raked in above $20 million for the 15th consecutive month. Kansas City's largest casino took more than seven years to reach that mark in March 2004, but it has been smooth sailing since then.

Reasons for the slump could only be speculated upon. "it could be a lot of things - gas prices, the economy," said Ameristar vice president Troy Stremming. "We've had a pretty nice spring," he added. "People might be outside doing other things and not spending time in a casino."

"That number used to be nowhere near $57 million," he said, remaining positive about the Kansas City market. "There has been significant growth over time. This market has matured into a very stable and profitable market."

He's also looking at the brighter side of the problem. "When you're at 36 percent market share and $20 million plus in revenues, that's a good problem to have,"

Statewide averages were pulled down by Kansas City's Isle of Capri Casino, tallying a revenue dropdown of 16 percent to $7.4 million, and by the President and Ameristar St. Charles casinos in the St. Louis market, which each dropped around 3 percent.

Isle's May drop lost over 2 percent in market share. The casino slipped from an above the average 16 percent share around five years ago to a typical 13 percent market share the past year, even slipping below 13 at 12.8 in May.

Isle Officials however report that there are on their way to an $85 million expansion. "The Isle will be very competitive in this market once we have finished," said Roger Deaton, regional operations vice president for Isle of Capri Casinos Inc.