why is the Rivers Casino performing so poorly? (Harrisburg, Penn: rental, credit rating)

[pman]

moving forward
Rivers Casino to add games, new ballroom

[BrianTH]

Great news! It may never be the competitor for massive slots parlors that some originally hoped, but it seems to be shifting over to offering what actually makes sense given its location/market (which applies both to swapping some slots for more tables, and also relocating the ballroom to actually make use of the great view). And it happens to be the case that such a shift will also mean more jobs.

[feanix]

Originally Posted by RestonRunner86

It was good lemonade, and it kept me alert as I played my favorite machine---the one where the little cows get abducted and "MOO" at you!

LOLOL! It's so funny you posted that ---- it's my favorite slot machine too! Why do they only have a couple of them being they're so popular? You'd think they'd add more? You have to watch until one becomes available and swoop in and claim it, but it is the best slot machine ever!

[OnThaGrind]

The casino is going to keep doing better and better with time. The first expansion is just the beginning i think. Once the ballroom is done and eventually a hotel is added to the property, it will appeal to the travelers and people looking to book conventions. Then that will bring more patrons in and boost the revenue and bring more jobs with future expansions. I think this will be great for the city.

[BrianTH]

Originally Posted by OnThaGrind

The casino is going to keep doing better and better with time. The first expansion is just the beginning i think. Once the ballroom is done and eventually a hotel is added to the property, it will appeal to the travelers and people looking to book conventions. Then that will bring more patrons in and boost the revenue and bring more jobs with future expansions. I think this will be great for the city.

As I see it, the only real issue is that the casino cost a LOT of money to build and launch, and in addition to paying off that debt it also is making some required payments to the state and local authorities and also paying local property tax. I agree with you that the casino is likely to keep doing better and generating more jobs for the area, as well as serve as an attraction for visitors. So it isn't likely to stop operating, but it may have to go through a financial reorganization at some point, with unknown consequences for those currently receiving payments.

[OnThaGrind]

Originally Posted by BrianTH

As I see it, the only real issue is that the casino cost a LOT of money to build and launch, and in addition to paying off that debt it also is making some required payments to the state and local authorities and also paying local property tax. I agree with you that the casino is likely to keep doing better and generating more jobs for the area, as well as serve as an attraction for visitors. So it isn't likely to stop operating, but it may have to go through a financial reorganization at some point, with unknown consequences for those currently receiving payments.

Yea that's gonna be interesting to see how that pans out. I know somebody will not be happy but it's not doing bad enough to shut down. Whoever came up with the financial outlook for future revenue will probably be fired. I think from there, like you said, the financial restructuring will happen. I think that will stabilize things a bit.

[BrianTH]

Originally Posted by OnThaGrind

Yea that's gonna be interesting to see how that pans out. I know somebody will not be happy but it's not doing bad enough to shut down. Whoever came up with the financial outlook for future revenue will probably be fired. I think from there, like you said, the financial restructuring will happen. I think that will stabilize things a bit.

Yep, as far as I understand it is making money on an operating basis. So, maybe someone is going to be left holding the bag for the initial costs, but it should stay in operation, and indeed expand in the ways that are working best.

The local interest is in trying to make sure the local entities who are receiving casino payments are the ones left holding the bag.

[pman]

For Rivers Casino in Pittsburgh, which has the same owner as SugarHouse (Chicago billionaire developer Neil Bluhm) and a similar waterfront location, tables have been a game-changer.
The $780 million casino, which opened Aug. 9, 2009, spent its first year in the bottom tier for gross slots revenue. After tables came on the scene last summer, it steadily moved up to the top three, thanks largely to the traffic that management said table games brought in.

Last month, Rivers ranked No. 5 in table-games revenue, bringing in $5.5 million with 104 tables. It finished just behind SugarHouse, which generated $6.4 million with its 43 tables.

"Basically, the poker room is what brought me in," said Kent Walter, 58, who owns a heating and air-conditioning business in Alliance, Ohio, a key feeder market for the downtown Pittsburgh casino....
"It's phenomenal," poker-room shift manager Sam Rudman Sr. said. "The play has increased tenfold. We can't expand fast enough.

Quest for more table games - which could cut tax revenue | Philadelphia Inquirer | 04/26/2011

[BrianTH]

There could be some spurious correlation there--likely some of the increase in slots is due to an improving local economy and also natural buildup of business following a rocky introduction. Still, obviously table games have been good for Rivers, which is good for all the local entities getting money from Rivers.

[pman]

Originally Posted by BrianTH

There could be some spurious correlation there--likely some of the increase in slots is due to an improving local economy and also natural buildup of business following a rocky introduction. Still, obviously table games have been good for Rivers, which is good for all the local entities getting money from Rivers.

true, though since it is in line with what the similar philly area casino is experiencing I'd guess table games is a large part of it. in this thread it didn't take long before someone complained there were no table games.