For the past two decades, Churchill Downs has been losing foot traffic and cash to the casino downriver from Louisville and others anchored on the Ohio River after Hoosiers legalized gambling in 1995.

But this fall, the track has begun taking back some winnings, thanks to the mid-September opening of its $65 million Derby City Gaming venue. Its 900 historical racing machines feel just like slots to most players.

Early numbers from Indiana revenue reports show an undeniable impact. In October, the first full month of gambling on record for Derby City, Horseshoe Southern Indiana recorded both a decline in table game winnings from the previous October and a more significant drop in volume of play and gross adjusted revenues at its slots, state gaming commission data show.

The rest of the Ohio River casino market showed slight increases and dips, as usual, last month year over year. Horseshoe Southern Indiana stood out in posting a $264,058 decline table game gross revenue — the difference between $4,125,680 this October and $4,389,738 for the same month last year.   

A look back: Casino boat downriver from Louisville turns 20 this month

The slots volume of play measured by "coin in," the cash inserted into Horseshoe's 1,580 slots and video poker terminals, declined from last October's $164.3 million to $143.7 million last month. In that time, the casino's gross winnings declined by slightly more than $2 million.

Horseshoe, which now posts combined slots and table games annual gross revenues of about $260 million, has lost market share to "racinos" — race tracks with casino games — in Indianapolis, casino legalization in Ohio and French Lick's arrival in 2007. 

But it's not overlooking the threat in its backyard now. Dan Nita, Horseshoe Hammond general manager and (parent company) Caesars regional president, said during a recent conference call with the Indianapolis media that 900 new machines in Louisville are bound to lure away Horseshoe regulars, and the casino will need to respond.   

Its biggest play is Horseshoe's new $85 million land-based venue, now under construction beside its pavilion on Ind. 111. It's set to open late next year.

Churchill Downs Inc. mentioned the new Louisville facility in its report at the end of the September, but results from just a few weeks of gaming were rolled into "other investments" and didn't specify how much money Derby City raked in.

Emails and phone messages were not returned by a communications coordinator and T. Kevin Flanery, president of Churchill Downs racetrack.

New gaming in Louisville "just reinforces our commitment to stay fresh and relevant," said Brad Seigel, Horseshoe's general manager.

Churchill now is getting a chance to build a new customer database from Derby City players. They can extend incentives, and the bet is that its market share of slots players will to grow even after the usual "tire kickers" leave, said Ed Feigenbaum, the editor of gambling and legislative newsletters put out by Hannah News Service in Indianapolis.

Horseshoe will need to counter-punch to win back some patrons, he said.

Even the Las Vegas Advisor, a publication that tracks the U.S. gambling industry, noted what's unfolding in Louisville. Noting that Northern Indiana wagering was down or flat for October, "there’s no such accounting for some of the numbers we’re seeing out of Southern Indiana unless “historical racing” in Kentucky is having a bigger impact than previously thought."

Grace Schneider: 502-582-4082; gschneider@courierjournal.com; Twitter: @gesinfk. Support strong local journalism by subscribing today: www.courier-journal.com/graces 

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