Carol Johnson, Southern Indiana Business Report
FRENCH LICK – Market saturation from increased competition is chipping away at the French Lick Resort’s gaming revenue.
Competition for the gaming market in southern Indiana is coming from Ohio casinos, Derby City Gaming in Kentucky, racinos and the newest casino to open in Indiana – the Terre Haute Casino Resort.
Chuck Franz, CEO of the French Lick Resort, told a room full of community stakeholders Monday that gaming in the southern Indiana market (excluding Terre Haute) is down nearly 4% from a year ago.
Franz gave an overview of the Resort’s revenue from gaming and what the Resort is doing to offset the market erosion during an update to stakeholders at the French Lick Resort.
Increased competition in and outside of Indiana means more choices for those who like to play slots and table games.
Breaking down the competition, Franz said, “You might say, ‘How does Ohio affect southern Indiana?’ What happens is they market into taking Belterra’s business and Lawrenceburg’s business. Guess what, Belterra and Lawrenceburg need to recoup their dollars, so they start to market farther over here,” Franz said.
More competition is coming. In 2025, Louisville-based Derby City Gaming will open a gaming facility with 600 slots-style historical racing machines in Owensboro, Kentucky, which is about 80 miles from French Lick.
“In 2007, the casino had its best year. Mr. Cook said in the very beginning, don’t get used to it and he was right,” Franz said.
The French Lick Resort isn’t the only casino feeling the heat of competition.
“Belterra now is just slightly larger than us. You remember our largest year was right at $100 million,” Franz said. “To tell you how much the market is saturated, Belterra used to be a $160 million casino. They’re going to be our size this year.”
According to the Indiana Gaming Commission’s latest report, in July, the Terre Haute Casino reported $10.5 million in adjusted gross revenue, ranking ninth among the state’s 13 casinos.
Four casinos reported lower AGR totals than Terre Haute Casino:
- Blue Chip Casino: $10.4 million (-3.8%)
- French Lick Resort: $6.8 million (-4.6%)
- Belterra Casino: $6.2 million (-22%)
- Rising Star Casino: $3.3 million (-17.8%)
The gaming landscape may be changing, but Franz said the Resort remains committed to Bill Cook’s mission to protect Orange County jobs and historic buildings for years to come.
Hospitality revenue up 33%
Post-pandemic, Franz said the Resort has changed its focus from casino revenue to hospitality revenue. The shift is paying off as the French Lick Resort is seeing growth in leisure and group travel.
With the addition of the Event Center and more concerts, leisure travel has taken off. Hospitality revenue has grown 33% since 2019.
“We don’t see this trend stopping. We’re already getting bookings into next year,” he said.
Golf growth is another segment that is “off the charts.” The growth of golf is bringing more visitors to the Resort from outside Indiana and the Midwest. The Resort has always been popular with Hoosiers but even that is shifting.
“Over 70% of people who came here in the summer were not from Indiana and we’ve never seen numbers like that,” Franz said.
Property updates
- Restoration of the Billiard & Bowling Pavilion on the grounds of the West Baden Springs Hotel is on schedule and should be completed in time for the holiday tree lighting in November. A high water wall was constructed to protect the building from flooding. The project will re-construct a wing that was lost and add restrooms and include Sprudel’s Pizzeria.
- Final repairs are nearly completed on the dome from damage caused by a hail storm in June 2023.
- Sand Creek Golf Course, a short, par 3 course will open for limited play on weekends in late fall. A similar course in Pinehurst, N.C., did 70,000 rounds in a year. The Resort’s courses do 40,000 rounds a year. “I don’t believe we’re going to do 70,000 rounds, but it is going to be popular because it’s for everybody. The longest hole is 75 yards and you can play it in no more than an hour and a half,” Franz said.
- Pickleball courts will be covered with a roof to extend play.
- The Korn Ferry Tour Championship will bring national coverage and golf fans to the Resort’s Pete Dye Course Oct. 3-6. The championship will feature the top 75 players from the tour, 30 of them will be awarded their PGA tour cards.
Indiana ranks high for casino tourism
The competition may be creating headwinds for some casino operators, but Indiana was recently ranked on a list of 15 Best U.S. States for Casino Tourism.
BetMGM unveiled the list and Indiana is ranked No. 12. The Las Vegas-based sportsbook ranked the states based on the number of total casinos, number of casino employees per capita and cost of airfare into the state.