Casino revenues continue to drop

Lynn Volkens

06/05/2008 - Gilpin casinos saw revenues drop again in April, continuing the pattern of decline that has prevailed since January. The 20 casinos in Black Hawk experienced a 7.6% drop in revenues from March. April’s revenues totaled $42.3 million, compared to March revenues of $45.8 million. Compared to the $47.9 million April 2007 revenues, Black Hawk casino revenues are down by 11.7%. Central City’s six casinos reported April 2008 revenues of $5.6 million. That’s down 4.2% from March’s $5.9 million and a bigger dip (16.7%) from April 2007’s $6.8 million.

  Teller County casinos are in the same submerging boat. Cripple Creek’s fifteen casinos reported April revenues last year of $12.3 million. Total revenues for April, this year, amounted to $10.7 million. That’s a decrease of 13.3% and a 6.4% decline from their revenues of $11.4 million last month.

  Colorado’s Division of Gaming released the figures in their June update and reflected the revenue decrease in statewide gaming tax proceeds. Casinos paid $10.2 million to the state in April, down from $10.8 million in March. For the first time since 1999, the Gaming Commission changed the tax rates, amending the tax structure to 0.25% on the first $2 million AGP, 2% on $2 million to $5 million, 9% on $5 million to $8 million, 11% on $8 million to $10 million, 16% on $10 million to $13 million and 20% above $13 million. That gives Gilpin’s mid-size casinos, those making between $4 million and $15 million a break. Casinos that make less than the $4 million and those making more than $15 million will not see a change in their tax rate. The new tax structure takes effect July 1^st and it’s hoped the casinos affected will see a combined tax savings of $824,000.