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Churchill Downs Incorporated (CDI) announced it had elected not to renew its management agreement with Lady Luck Casino Nemacolin.
The Woodlands Fayette LLC will now manage the Pennsylvania casino after completing the sale of all assets formally controlled by CDI. In addition, the Pennsylvania Gaming Control Board (PGCB) voted to renew the Category 3 resort casino license for another five years.
Lady Luck Pennsylvania casino license renewal
The renewal of the Pennsylvania casino license wasn’t a sure thing. Lady Luck has slowly watched its gross revenue slump for the past seven years. In 2015, the gambling parlor hit a high of $35.2 million in revenue. However, since then, revenue has slowly declined.
Through May of 2023, the casino has made $8.1 million in revenue. For the first 11 months of fiscal year 2022-2023, Lady Luck has only generated $9.2 million in tax revenue for Pennsylvania.
Lady Luck Casino 5-year revenue:
- $32.2 million (2018)
- $32.9 million (2019)
- $20.2 million (2020)
- $23.7 million (2021)
- $22.2 million (2022)
In October 2022, the PGCB held a public hearing where casino personnel, local elected officials, community groups and other agencies provided testimony about the casino and its community impact.
Casino pivoting in a new direction
On Thursday, during the licensing renewal hearing, representatives from Lady Luck also outlined a new direction for the casino.
According to a story by the Post-Gazette, the presentation included a “new strategic direction” designed to transform it into a profitable operation. Plans include creating a high roller area, changing the gaming floor and upgrading its entrance.
Woodlands Fayette is partnering with RRC Gaming Management, a Las Vegas-based consultant, to assist in the transformation. Lady Luck representatives also said one of their first goals is to renovate the casinos to “create an attractive amenity for guests in line with the resort experience.”
Since opening in 2013, Lady Luck has generated over $289 million in revenue from slot machines and table games, translating to roughly $140 million in tax revenue. The casino in Wharton Township employs 167 people and has 600 slot machines and 26 table games.
