CHESTER, W. Va. — MTR Gaming Group Inc. posted a net loss of $500,000 for the second quarter. The net loss for the first six months of 2010 was $3.8 million.
For the second quarter, net revenues from continuing operations were $111.6 million, a decline of 8% from $121.1 million in the same period of 2009. Total net revenues decreased 9% to $211 million in the first half of this year from $230.8 million in the first half of 2009.
Net revenues at Mountaineer Casino, Racetrack & Resort here decreased 14% to $61.9 million in the second quarter of 2010. Table gaming generated $12 million of revenues compared to $12.2 million in the prior-year period, while revenues from slots was $42.8 million, compared to revenues of $52.3 million in the same quarter of 2009. The decrease in slot revenue is primarily attributable to competitive pressures and weak economic conditions.
Net revenues at Presque Isle Downs & Casino in Erie, Pa., increased 2% to $48.6 million during the second quarter of 2010 compared to $47.8 million during the same period of 2009.
“We continued to face difficult challenges during the quarter, as not only did the economy show few signs of recovery as evidenced by continued high unemployment rates, we continued to be impacted by competitive pressures in one of our larger feeder markets with the expansion of slot gaming positions by 35% compared to a year ago,” said Robert Griffin, MTR president and CEO.
“In addition, we experienced disruption at Presque Isle Downs resulting from the construction to expand its gaming area to accommodate table games. Looking ahead, we are pleased to see the Ohio Lottery Commission move forward with Gov. Strickland’s plan to add video lottery terminals at Ohio’s racetracks, which will allow for slots to be placed at Scioto Downs without further legislative action.”
Scioto Downs is located in Columbus, Ohio.
As of June 30, 2010, MTR had $48.6 million in cash and cash equivalents after paying a $16.5 million fee to the Pennsylvania for Presque Isle Downs’ table games license and $389.1 million in total debt.
On July 8, table gaming started at Presque Isle Downs & Casino officially “We are pleased about the opening of table games and we believe it will be a driver of growth in our existing markets over the next year,” Griffin said.
