Penn National’s Third Quarter Financial Results
The affluent Hotel Group has declared intentions to launch a fresh gambling establishment in Illinois within the upcoming three months. The organization also disclosed that they will be establishing another gambling house in Colorado by the middle of 2023.
The gambling facility in Waukegan, Illinois will commence product and system evaluations by the end of November. Roughly 1,000 slot machines will be put in place this week. The new gambling house will also generate hundreds of employment opportunities. The facility has already disseminated job offers to more than 400 individuals.
Meanwhile, Rich Hotel stated that the Chamonix project in Cripple Creek, Colorado is advancing smoothly. President and CEO Daniel Lee added that the project reached a “topping off” milestone in September.
Lee remarked, “In Waukegan, Illinois, we are undertaking the finishing touches and preparing to install slot machines this week. We anticipate concluding the installation of the entire slot machine area by the end of November and being prepared for testing.”
“As with all new casino openings, we need to complete a detailed checklist before welcoming our first customers. Thus, while the company anticipates opening within the next three months, the precise opening date remains uncertain.”
The temporary gaming establishment, once operational, will be the sole gambling destination in Lake County, Illinois, a county with approximately 700,000 inhabitants and one of the wealthiest in the United States.
Construction of the Chamonix is progressing smoothly, with the glass facade already installed and the interior walls being erected. Upon completion, Chamonix will be among the largest casino hotels in Colorado and the most expansive and luxurious in Cripple Creek, a prominent gambling hub in the Colorado Springs region.
Penn National’s Third Quarter Financial Results
While providing updates on these two ventures, Penn National also disclosed their financial performance for the third quarter of 2022. They generated $41.4 million in revenue, representing a 12.3% decline compared to the same period last year.
Casino revenue decreased by 8.6% to $29.7 million, food and beverage sales declined by 4.2% to $6.8 million, and other revenue streams (including sports betting) decreased by 53.9% to $2.4 million. The only category that experienced an increase was the hotel, which generated slightly higher revenue at $2.5 million.
Analyzing regional performance, the Hollywood Casino Hotel in Illinois generated the highest revenue at $20 million, representing a 7.0% decline from the previous year, but still one of their most successful quarters ever.
The Rising Star Casino Resort in Indiana generated $9.6 million in revenue, a 23.8% decrease compared to the previous year. The Bronco Billy’s Casino Hotel in Colorado generated $4.4 million in revenue, a 30.2% decrease compared to the previous year.
The gambling houses of Bronco Billy’s and Stockman’s in the Silver State experienced a significant increase in their revenue, soaring by 23.5% compared to the previous year. However, their earnings from sports wagering took a substantial hit, plummeting by 31.3% to a total of $1.1 million.
These establishments incurred a considerable rise in operational expenses, climbing by 8% to $39 million. Additionally, they were obligated to shell out $5.9 million in financial charges, resulting in a pre-tax loss of $3.5 million. In the preceding year, they had generated a profit of $4.7 million.
Following the payment of $29,000 in taxes, the casinos ultimately registered a quarterly loss of $3.6 million. In the previous year, they had achieved a profit of $4.6 million. Their adjusted EBITDA also experienced a significant decline, dropping by 42.7% to $7.8 million.
