The Seneca Gaming Corporation (SGC) filed their annual 10K report with the SEC last week. In the report, the SGC details how the recession and credit crisis contributed to the company losing $19.37M for the year ended September 30th – a dramatic change from the prior year when SGC made 102.6M. The Buffalo News and Business First both have covered the filing but, interestingly, neither detail the financials surrounding the Buffalo casino. So we’ll do that.
For the twelve months ending September 30, 2009, the Buffalo Creek Casino – also known as the Blue Shed – generated $41.1M in net revenues, a 26% increase over the $32.7M generated in 2008. Clearly, the recession that contributed to a net decrease in Seneca Gaming’s overall revenue didn’t cause the Buffalo Creek Casino’s revenue to decrease. The downtown casino houses 244 slot machines which means the little corrugated steel casino generated over $168,000 in revenue for each and every slot machine on premises.
To put this $41.1M in revenue in comparison, consider the Buffalo Sabres total ticket sales was $28M last year. That’s right – the shocking statistic we highlighted last year is true again – the blue corrugated steel shed generates more revenue than the Buffalo Sabres ticket machine at HSBC Arena. The downtown casino hasn’t yet equaled the Buffalo Bills ticket revenue, but they are getting closer as the Bills total ticket sales was $49M last year.
The annual report details the planned expansion for the Buffalo Creek Casino as Seneca Gaming plans to complete a 5,300 square foot addition by Spring 2010. This addition will allow the casino to house another 200-250 slot machines – potentially doubling the amount of slots currently in operation – which should allow the Senecas to substantially grow their revenue. Assuming the expansion opens on time, the Buffalo Creek Casino revenue should eclipse the Bills total ticket sales next year. Incredible.