Penn National Gaming Reports Financials

Penn National Gaming is reporting a loss of $3.8 million pre-tax currency for the three months ended June 30th. Chairman and CEO of Penn National Gaming, Peter Carlino, said that they have “positive operating trends” at many of their properties, and that two of them are their Gulf Coast casinos which had been closed a year ago because of the hurricanes.

They have acquired Zia Park Racetrack with its Black Gold Casino, and that just happened in April, so they will start to see an increase in revenue from those sources. They feel that they actually have a very strong portfolio, one that is diversified, thus not leaving them open to many weaknesses in it.

They are also suffering from the Illinois tax that they are getting from their Chicagoland facilities and negative year over year comparisons in Baton Rouge. They say that they are still trying to stabilize these properties, as they were greatly affected by the hurricanes. They also have higher insurance costs due to these factors and with the money that have had to put out in Kansas and West Virginia to support local referenda – they are seeing a small loss.

They were disappointed that residents voted against table games at their Charles Town Races and Slots, and now they have to wait two years before they can try again – but they say that they are hopeful for the future. They also say that they brought in more slot machines and have increased the number of slot machines that they have now to 5,000. This increased slot machine revenue will start to be seen as well.


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