Nevada Gold & Casinos, an operator of nine gaming operations in Washington, a local casino in Henderson, Nevada and a slot route operation in Deadwood, South Dakota, said its third quarter net revenue had decreased to $18m compared to $18.4 m in the third quarter of fiscal 2016.
This decrease was primarily driven by a $1.4 m decline in Washington, partially offset by a $1.2m increase from Club Fortune Casino, which was acquired on December 1, 2015. Operating expenses were $18.5m compared to $17.2m in the prior year period.
“Our Washington portfolio endured harsh weather conditions beginning in mid-December and continued into mid-February,” stated President and CEO Michael Shaunnessy. “The growth in volumes we had seen in the first two quarters stalled, and we continued to be plagued by a softer than normal hold percentage, particularly compared to the prior year. On a more positive note, Club Fortune generated its highest quarterly revenue and EBITDA since acquisition.”
Net revenues from the Washington state gaming operations decreased to $13.2m compared to $14.6m in the prior year. Of the $1.4m revenue decline, lower table drop was responsible for $0.5m, lower hold percentage for $0.6m and poker for $0.3m. Adjusted EBITDA decreased to $1.6m compared to a record $2.8m in the prior year period.
Club Fortune net revenues were $3.6m and adjusted EBITDA was $0.6mcompared to prior year’s first two months of operations which yielded $2.4m in revenues and adjusted EBITDA of $0.3m.
South Dakota revenues declined $174,000 to $1.2m, which was partially offset by operating expense reductions leading to a $48,000 decrease in EBITDA compared to the prior year.
For the nine month period of fiscal 2017, net revenues were $54.8m compared to $50.4m in fiscal year 2016.