Colorado’s mountain casinos suffered their biggest monthly drop in revenue in March since the first casino opened in 1991.
The state’s 42 casinos posted revenue of $63.2 million in March, down 15.2 percent from $74.5 million during the same month a year ago, according to data released Thursday by the Division of Gaming.
March was the third month of the casino smoking ban. Consumers have also been socked with rising gas and food prices, coupled with a slowing economy.
“It’s hard to say exactly how much of (the drop) is attributable to smoking and how much is just the economic malaise and high gas prices,” said William Palermo, an industry analyst who studies Colorado’s gambling market.
Palermo added that he thinks the ban has had an impact.
“I was up there a couple of weeks ago and couldn’t help but notice the number of people standing outside smoking as opposed to playing the games,” he said.
At other gambling jurisdictions that have smoking bans, revenue dropped initially but rebounded about a year later.
“It seems to go through a cycle where it’s initially reduced but people get used to the (smoking ban), and if they don’t have an alternative to go to, eventually they’ll start coming back,” Palermo said.
The drop in March was the third consecutive decline for the industry after posting gains for 11 straight months. Adjusted gross proceeds — total bets minus payouts — dropped 10.1 percent in February.
“There are many other factors that need to be taken into consideration when analyzing casino revenues, including the fact that there are fewer casinos in Colorado in 2008 than there were last year,” said Cindy Liverance, vice president of programs for the American Lung Association of Colorado.
In March 2007, there were 44 casinos, compared with 42 this year. Black Hawk casinos posted revenue of $45.82 million, down from $53.6 million. Cripple Creek casinos had $11.44 million, down from $13.7 million. Central City casinos posted $5.93 million, down from $7.2 million. The previous record monthly drop for the industry was a 10.3 percent decline in March 2003.
Andy Vuong: 303-954-1209 or avuong@denverpost.com
