Colorado’s mountain casinos saw a 3.6 percent drop in revenue in January, the first month of the casino smoking ban.
The drop isn’t nearly as drastic as some operators had expected, though industry officials said Tuesday it’s too early to determine the full effect of the ban.
“We had a really terrible, terrible January in ’07 . . . because virtually every weekend it snowed,” said Joe Behm, a spokesman for Fortune Valley Hotel & Casino in Central City. “So comparing January to January is not going to provide the kind of data we need to see the effect.”
Casino revenue plummeted 8 percent in January 2007 compared with the same month in 2006. Behm said it will take five or six months of data to measure the ban’s impact.
Last month, the industry recorded $56.7 million in adjusted gross proceeds, which is total bets minus payouts. That was down 3.6 percent from $58.8 million in January 2007, according to statistics released Tuesday.
The industry estimates that 30 percent to 50 percent of casino patrons smoke.
Lois Rice, executive director of the Colorado Gaming Association, said the industry was projecting a 10 percent to 15 percent drop in business, based on outcomes in other states.
In Colorado, several casinos have poured millions of dollars into renovations in an effort to continue to attract smokers. Ameristar Casino Black Hawk installed heaters and windbreaks on existing patios and balconies. The Riviera Black Hawk Casino built a new balcony for smokers.
In January, Black Hawk’s 20 casinos posted $40.9 million in revenue, down 3.4 percent from the same month a year ago. Cripple Creek’s 15 casinos had $9.9 million, down 7.8 percent, and Central City’s six casinos generated $5.9 million, up 2.8 percent.
Andy Vuong: 303-954-1209 or avuong@denverpost.com
