Potawatomi Casino Experiences Mild Revenue Boost
The Milwaukee casino operated by the Potawatomi Tribe saw its gambling revenue move up by 1.5% in 2016. The slight increase is another sign indicating the minute growth that seems to be a common occurrence in the Midwestern gambling market.
Gamblers lost around $400 million during the 12-month period (ending on July 31st). The figure is a rough estimated based on the payments the tribe made to the state and local governments.
In 2015, the tribe is reported to have earned around $395 million and in 2014, around $390 million.
The growth can be best described as “extremely gradual”. However, Mark Nichols, Professor of Economics at the University of Nevada-Reno, believes this to be a good sign because it still indicates growth. For the 2014 period, the Potawatomi casino actually experienced a 3% drop in gaming revenue.
Actual earnings are confidential
Tribes in Wisconsin that operate casinos are allowed to keep the actual gaming revenue figures confidential. The current estimate of $400 million is derived by calculating the payments made to the concerned governments.
Reports suggest that around $5.66 million was paid to the City and County of Milwaukee. Last year, this payment was estimated to be around $5.57 million. The figure is around 1.5% of the net win and was arrived at after deducting the $25 million that was paid to the state.
Other than that, around $70,000 from the revenue is paid to each Forest County Tribe member.
Midwestern markets projected to be mature
According to Frank Fantini of Fantini Gaming Report, exponential or fast-paced revenue growth usually occurs when tribal heads and legislative heads push for the opening of new casinos and stimulate the gaming industry.
However, Wisconsin hasn’t seen this type of stimulation for long, which explains the minuscule growth. The lack of new operators has caused revenues to stagnate or grow very slowly. However, since there is marginal growth, Fantini believes that the Midwest market can be best described as “mature”.
Fantini’s opinion was supported by Ryan Amundson, a spokesperson for the Potawatomi Hotel & Casino. According to Amundson, there was no doubt about the Midwestern market being a mature one after looking at the recent revenue figures.
However, the Potawatomi Hotel & Casino does plan to change things around. It currently has plans of expanding the present infrastructure to 500 rooms. This is being done in hopes of boosting the number of gaming customers as well.
