SAN DIEGO – A veteran casino consultant told Native American slot directors and executives that a 17 percent drop in tax refund checks, along with a cold and snowy winter in the Midwest, might hinder the first quarter revenue of some casinos.
Mary Loftness, the president of Profitable Customers, expressed her concerns Monday during a panel on slot machine marketing at the National Indian Gaming Association conference and tradeshow in San Diego. She said she will see if her forecast is accurate once revenue numbers are released.
“Because of the change in the (federal) tax law, the typical person received 17 percent less,” Loftness said. “I could almost bank on the first weekend in March being gangbusters. And we got beat up by the weather. If you can’t get there, you can’t play. That (weather) created many challenges.
“Between those two (factors), I’m interested to see the first quarter results out of the markets that publish. It was a struggle out there.”
Based on news accounts, average tax refunds were down about $500 from a year ago.
Loftness said that tax refund season is important to casinos based on her experiences in the industry. When tax refunds were late in the past, it impacted first quarter revenue, she said.
“I have worked for 30 to 40 casinos as a consultant, and based on my experience, it starts to heat up in late February and March (because of) tax refunds,” Loftness said afterward. “Uncertainty is never good.”
Tax refunds are part of the discretionary income that people use for gambling, Loftness said.
“It’s found money,” Loftness said. “It’s their own little found jackpot.”
