The revolver is lower this year at 1.5 million vs. 1.7 million.
I guess that's because they now have 811 machines compared to 950 machines at year end in SD.
Hopefully closing the 2 places will improve profits, but it seems at least for now SD is NOT a growth situation.
I will agree I was "bummed" to hear of the decrease from 950 to 811. I even went back and looked over the past year's numbers from South Dakota. The last year trailing ebita (from feb 2012 to Jan 2013) for south dakota segment is 1,099,362 dollars. The segment is profitable.........and under 5x ebita multiple.
Now with closing Bourbon Street and the Green Room they are taking away the machines that were making them lose money in their otherwise profitable business and shifting that revenue to their other machines in the area (and also losing some revenue to competitors). In doing so this segment has now become more efficient.
I do want to point out that there is still ways to grow in south dakota. There are still some small casinos in town that could partner with nevada gold and use the same rewards points program. Also the south dakota gaming commission could also raise the maximum amount a player could wager in a slot. It currently is at 2 dollars per play. If it were to be raised to 5 dollars per play, it would mean increase in revenue for the company as well as the state. Keep in mind, the state is going to get less revenue from this decrease in number of slots. Decreased revenue may make the state consider this option.
I did a google search on the South Dakota betting limits. They raised some of the limits in 2,000 and there was a lot of activity on the issue in 2012. Can't post links anymore in yahoo, but recent articles discuss SD limits being lower than neighboring states. Closing unprofitable route locations is a plus.