Casinos which were at one point of time the rage of one and all had investors pumping in money to open new facilities. And just like anywhere else, in Quad cities too casino operators were a happy lot, raking up huge money on their investments. But all this has turned out to be a thing of the past, particularly for Quad cities’ casinos. While technological advancements have opened doors for online casinos thereby making life difficult for the brick and mortar casinos, the decision of Illinois government in 2009 to liberalise the issue of licensing to new casinos have further complicated the situation for the casino operators.
Within a period of two decades, the Quad city region has had umpteen numbers of casinos coming up. The profits the casino operators were making obviously was an impetus for newer investments pouring in the region. Now it has reached a point of saturation with more than two dozen casino facilities in the region. And as states of Illinois and Iowa are on the verge of issuing fresh casino licence, the scenario looks bleak for the existing casino operators. And with huge competition also emerging for the brick and mortar casinos from the online casinos, tough times are ahead for these casinos.
Ever Optimistic Investors
However without sulking at the developments, investors are looking at the positive developments too in the industry. One inspirational story is the success of Jumer’s casino. Owners of Jumer casino had pumped in investments of over hundred million dollars in 2008 to create an upscale casino facility on the centennial expressway which has catapulted the casino to its number one position, now. Dan Kehl, the CEO of Rhythm City casino is excited at the prospects of shifting to their new facility where an investment of about $110 millions has been made. Kehl is emphatic that in spite of the big competition, the new facility is absolutely needed – not just for their survival but for the rejuvenation of the industry as such.
A Realistic and Revised Estimate of Turnovers
Though an ambitious projection of $ 80 to $ 90 million per annum was made at the time of project implementation, now considering all other prevailing factors, directors of Rhythm casino hope to easily touch the $70 million mark annually. Since Rhythm casino at their present facility at Davenport riverfront has been doing a business of about $43 million, the increase in turnover is obviously substantial.
Kehl is confidant of such a big turnover since he believes that indices of economics are very strong now. For this reason, without making Rhythm casino as a stand-alone entertainment zone the promoters of Rhythm casino have combined with it various other facilities like event-room, spa, restaurants and pool. And for putting together such excellent infrastructure, the promoters of Rhythm not only have expended $110 million but have compensated $51 million to the Isle of Capri. Such grandeur plans have been unveiled to successfully face the challenge of the online casinos.