Ohio Valley Correspondent

Officials at MTR Gaming say they are “clearly disappointed” that casinos are coming to four Ohio cities, but growth opportunities remain.

Residents of the Buckeye State signed off Nov. 3 on plans to plump up sagging state coffers by opening casinos in Columbus, Cincinnati, Toledo and Cleveland. Cleveland is “one of our bigger markets,” MTR Gaming President and CEO Bob Griffin said.

MTR’s flagship properties, Mountaineer Casino, Racetrack & Resort in Chester and Presque Isle Downs & Casino in Erie, Pa., rely heavily on Ohio gamers: Mountaineer draws 78 percent of its customer base from Ohio, and Presque Isle, 48 percent.

MTR spent roughly $3.7 million in a failed bid to defeat the Ohio ballot initiative on casinos, hoping instead to persuade voters and legislators to legalize video lottery machines at the state’s seven racetracks, one of which — Scioto Downs in Columbus — is owned by MTR.

MTR reported net revenue of $119.5 million from continuing operations during the third quarter, down 9 percent from the $130.8 million posted in the same three-month period of 2008. EBITDA from continuing operations was $17.2 million, also down, while corporate operating expenses — excluding the money spent to lobby against the Ohio casino initiative — were $2.2 million, down 35 percent, as a result of cost-containment efforts.  

Griffin said the Ohio casinos could come online as early as January 2013.

“From everyone we’ve talked to in the Capitol, they’re still trying to digest exactly what (the vote) means,” Griffin said. “But I think there’s a lot of sympathy and support on the hill for the racing industry. They don’t want to see tracks close and jobs disappear before these other casinos open. There are some other ways we can go, but we don’t want to tip our hand at this point.”

Meanwhile, he said Pennsylvania is moving closer to table games.