Admissions at the Bettendorf Isle of Capri casino in fiscal 2008 were virtually the same as 12 years ago despite the opening of two hotels next to the riverboat aimed at boosting the number of gamblers.
For the 2008 fiscal year ended June 30, the Isle reported 1,451,452 admissions, nearly identical to the admissions in fiscal 1996 of 1,443,113 when it operated as the Lady Luck casino.
Last year's admissions also were off 28 percent from fiscal 2000, the boat's peak admission year when 2,018,936 gamblers came through its doors.
The Isle's first hotel was completed in August of 1998, while its second hotel opened in July of 2007.
At the Isle's sister boat, the Rhythm City Casino in Davenport, the decline has been even more severe, dropping nearly 47 percent from 1,775,317 admissions in fiscal 1996 when it operated as "The President" to 947,373 for fiscal 2008.
With the recent economic downturn and fewer disposal dollars available to consumers, many of the publicly traded gambling casino firms, including the Isle of Capri, have been downgraded by security analysts.
Statewide, the total number of admissions at "riverboat" casinos has nearly doubled in the past 12 years, from 8,958,175 in fiscal 1996 to 16,991,583 for fiscal 2008. Helping boost admissions statewide has been the expansion of gambling venues from nine to 14, including the new Riverside Casino near Iowa City and the Isle's new Waterloo casino.
The City of Bettendorf is currently building a $40-million events center which it hopes will bring in additional business for the casino and other types of businesses in the community. The Isle will operate the events center, which will be connected with a skyway to the new Isle hotel and casino.
Adjusted gross revenue at the Bettendorf Isle casino totaled $96.6 million in fiscal 2008, up 5.7 percent from fiscal 2007, but well below its peak revenue of $105 million set in fiscal 2004.
Likewise, the city and county taxes on the Isle in Bettendorf have seen a fall off from fiscal 2004 when each collected more than $527,000. For fiscal 2008, the city and county tax amounted to $483,000 each.
The state of Iowa collected $180 million in state tax from the riverboats in fiscal 2008, including $18.4 million from the Isle's Bettendorf operation and $10.6 million from the Isle's Davenport property. Back in 1996, the state taxes collected from riverboat casinos was slightly more than $58 million.
Partially offsetting the decline in admissions and helping hold up gross revenue numbers at the Bettendorf Isle property (and other riverboat casinos) has been the reduction in the amount of slot revenue paid out.
The casino slot payout reached a high of 93.81 percent in fiscal 1999. In fiscal 2008, the casino slot payout was 91.95 percent, resulting in slot revenue of $88.8 million on $1.1 billion wagered.
The state gambling commission does not set a specific slot machine pay out percent, only requiring that each slot machine payout "at least 80 percent and no more than 100 percent of the amount wagered."
The Isle in Bettendorf is part of Isle of Capri Casinos, Inc. founded in 1992 by local businessman Bernard Goldstein. The publicly traded company now has 18 casino properties in the United Kingdom and United States, including four in Iowa (Bettendorf, Davenport, Marquette and Waterloo). Goldstein, who now resides in Boca Raton, Florida, stepped down as chief executive officer in March of this year, but remains chairman of the board.
CLICK HERE for detailed reports on casino admissions, revenues and slot machine payouts from the Iowa Racing and Gaming Commission.
CLICK HERE to download the Isle of Capri Casinos, Inc. most recent proxy filing with the Security and Exchange Commission.
CLICK HERE for the Isle of Capri Casinos, Inc. first quarter financial results (3-months ended July 27, 2008).
