Bridge closure, floods cut New Albany casino’s revenue

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Updated: January 10, 2012 11:59PM

NEW ALBANY (AP) — An Indiana casino hit last year by spring flooding and the closure of an Ohio River bridge had its worst year in a decade as a big drop in visitors cut its 2011 revenues by 9 percent.

Horseshoe Southern Indiana posted $252 million in revenue last year — a $24 million drop from the year before, The Courier-Journal of Louisville, Ky., reported.

Admissions to the New Albany gambling casino fell 13.6 percent to 2.2 million, a decrease of more than 300,000 visits from 2010.

The casino’s performance showed a marked decline after Sept. 9, when Indiana Gov. Mitch Daniels ordered the Sherman Minton Bridge over the Ohio River closed after a crack was found in a load-bearing beam.

That order shut down the quickest route to the casino for customers from Louisville and nearby Kentucky counties. The bridge carries Interstate 64 traffic between New Albany and Louisville, Ky.

Horseshoe general manager Eileen Moore acknowledged the casino weathered a difficult year, but praised the way workers responded.

She said the riverboat casino’s 1,700 employees received quarterly and year-end bonuses from parent Caesars Entertainment to recognize good customer service scores.

“I couldn’t be more proud of our results for 2011,” Moore said in an email.

Her email also mentions the casino is planning “a giant party to celebrate” the reopening of the Sherman Minton Bridge.

Until the bridge reopens in late winter or early spring, patrons coming from Louisville must drive crowded northbound Interstate 65 to westbound I-265, then head east on a partially blocked I-64 to the New Albany exit. From there, the casino is nine miles along Indiana 111.

Ed Feigenbaum, publisher of Indiana Gaming Insight, an Indianapolis-based newsletter that tracks the gambling industry, said that even after the bridge reopens, the casino will have to spend extra money to revive interest among patrons who have begun visiting competitors because of problems in reaching Horseshoe.

If customers were pleased with loyalty rewards programs at other casinos, they may be less inclined to return to Horseshoe when the bridge reopens, he said.

“It’s going to cost them a lot of money to get those customers back,” Feigenbaum said.

Last year was also marked by widespread spring flooding along the Ohio River which forced the casino to close for about 19 days during stretches in March, April and May. The casino’s 500-room hotel was closed for even longer periods because of limited access during the flooding that at times left Indiana 111 impassible.

Casino officials acknowledged paying more than $1 million to employees to offset lost tips and wages caused by the floods.

Horseshoe’s problems, along with increased gaming competition in neighboring states and the sluggish economic recovery, led Indiana revenue forecasters last month to warn the State Budget Committee that gambling tax revenues should be down in fiscal 2012 and 2013.

A report by a bipartisan forecast committee in Indianapolis projected a 6 percent decline for fiscal year 2012 in gross wagering receipts because of the impact of the Sherman Minton closing.