
Since its opening at the beginning of August, the Rivers Casino has been beset by one problem after another and has experienced much lower than forecast gross terminal revenues. These lower than anticipated revenues have been blamed on a variety of factors such as poor access on the North Side, the G-20 conference, and competition from not only the Meadows slots parlor, but from professional and college football games in neighboring Heinz Field. They have been threatened by the members of the State Legislature for not coming up with their obligation for the new hockey arena and have seen their credit rating downgraded. Not much has gone well for the new gambling parlor.
Maybe things will start looking up.
In what might be a reversal of fortune, a future competitor has announced it will enter bankruptcy protection. Centaur LLC, a company that specializes in gaming, has announced that it has sought court protection from creditors which will undoubtedly push back the opening of a Lawrence County race track and casino from its target of September 2010. The filing jeopardizes not only the company’s slots license, which it has been promised but not yet purchased, but its harness racing license as well.
Furthermore, the legalization of slots gambling in Ohio will be placed in front of the voters in the upcoming election. Lawmakers had passed a law but Ohio courts put it before the people in a referendum and it’s no sure bet to pass. If it does then casinos in western Pennsylvania, Rivers, Meadows, and Presque Isle, will see their customer base shrink as Ohio residents will no longer have to cross state lines to lose money.
All of this could be good news for Rivers Casino. However, it underscores the fact that legalized slots parlors are not the savior they were promoted to be.