Friday, May 06, 2011

If only Don Barden could have held on.....

I drafted this up a few days ago, but it got lost in some other things.   Now I see the Trib has it as well. 

Speaking of the casino assessment, this is from the Inky: Pa. credited with giving casino industry a boost

Remember Don Barden?

Despite rumors of his demise (financial and medical), Don Barden has been in the news of late up in Gary where relations between the City of Gary, Indiana and his Majestic Star Casinos are improving it would seem.  That and some other news out there reminds me of casino bidders of the past and that we have not checked in on metrics from the casino in some time.

Generally speaking things it seems to me things are much more stable down at the Rivers Casino.  Here is what struck me more.  Remember all the talk of how imposing higher tax rates on table games would discourage their 'investment' by state casinos.  Here is what the latest (March) numbers look like for the Rivers Casino.

SlotsTable Games        
Payouts including promotions$265,384,229.02
Gross Revenue$24,311,676.14 $5,548,123
Taxes$13,288,534.56 $887,700
Net$11,023,141.58  $4,660,423

So 30% of their gross profit is coming from table games.  Anyone think they were going to leave that money on the table?   Then there is poor Don Barden who signed on to the slots-only license at the time.  If he could have only made it until the state changed the rules, he probably would still be the owner. Alternatively, if someone else won the original license and they had been able to survive the first couple of years, they may have done quite well for themselves.  Just thinking counterfactually for a moment.

Not sure any of this is going to help out the Detroit Pension System's investment all too much, but it does mean the doors are going to stay open pretty much indefinitely over in Chateau.


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