The Region's casinos saw gambling revenue stabilize in 2015, and entered 2016 continuing efforts to enhance the non-gaming aspects of the business and appeal to a new generation of customers.
The casinos' take was about $972.6 million from the table games and slot machines in 2015, down only about $2.2 million from 2014's $974.8 million.
The drop of less than one-quarter percent followed a 7.3 percent drop from 2013 to 2014. The gambling win totaled $1.05 billion in 2013.
Reviewing 2015, Dan Nita, senior vice president and general manager of Horseshoe Casino in Hammond, described it as an up-and-down year — "almost an every-other-month kind of situation."
But it ended on an upswing, and "that's a good way to close the year," Nita commented.
An 'ultra-competitive' market
Casino operators universally describe the market as difficult. "It's a very tough, competitive market," said Ameristar Vice President and General Manager Matt Schuffert.
"Northwest Indiana is a competitive market; there is competition on all sides," noted David Strow, vice president of corporate communications for Blue Chip Casino parent Boyd Gaming Corp.
The five casinos along Northwest Indiana's lakeshore are bracketed by casinos in suburban Chicago and southwest Michigan. In addition, Illinois allows "video lottery terminals" at bars and other businesses.
Majestic Star Senior Vice President and General Manager Barry Cregan said the "ultra-competitive" market is sensitive to the sort of challenge the video lottery terminals pose, in addition to "racinos, fantasy sports and the possible development of another land-based casino in Chicago."
Strow said casinos need to meet that competition with "a richer experience."
"It's competition," he said of the Illinois video games, "but the experiences don't compare — it's night and day."
A land-based Chicago casino has been discussed for years; meanwhile, a Four Winds Casino is in planning stages for South Bend. The Pokagon Band of Potawatomi Indians hopes to build a new tribal village, including a casino larger than any in Indiana, on a 166-acre site at Ind. 23 and U.S. 31 in South Bend.
"All we can really focus on is doing what we do well," Blue Chip's Strow says. "Then we're well-positioned to compete."
Appealing to the next generation
Among the gaming industry's ongoing challenges is appealing to the different leisure habits of different generations.
A Las Vegas Convention and Visitors Authority study of visitors in 2014 showed that 87 percent of Silent Generation visitors (born 1946 or earlier) gambled, while only 63 percent of Millennial generation visitors (born 1981-1993) gambled.
Horsehoe's Nita says that members of Generation X and the Millenial generation expect a more social, group-oriented experience, and casinos need to incorporate that onto the slot floor.
That can mean rearranging a gaming floor's layout "to make gaming compelling for a new generation," Nita says. And, it can mean skill-based gaming, where players can advance through different levels of a game.; that's being implemented in Nevada to try to attract younger gamblers.
Casinos also work to continuously improve non-gaming activities and experiences.
Strow calls the hotel, dining and entertainment offerings "a great opportunity to connect with some of these customers." He said Blue Chip in Michigan City "is agnostic" on where revenue comes from.
All the casinos have added restaurants and other amenities; East Chicago's Ameristar recently opened the Stadium Sports Bar & Grill; Majestic Star in Gary re-branded the Harbor View Buffet and offers outdoor dining in the summer.
Ameristar renovated its hotel several years ago, and major construction has included Blue Chip's $130 million hotel tower and Horseshoe's $500 million gaming and entertainment complex.
It will likely be Majestic Star's turn next for a major upgrade. The Indiana General Assembly authorized land-based gaming last year, allowing existing casinos to build on land adjacent to their current river- and lake-based casinos.
Majestic Star had already announced plans for a new casino next to its hotel at Buffington Harbor when the General Assembly passed the new law.
"Potential sites within our campus footprint are under review," Cregan said. The company is working with its architectural engineer to "determine which of the potential sites within our campus footprint can physically support the future construction."
And the new casino, like all others, will be designed to "deliver the best guest experience and provide the greatest return on investment."