ELIZABETH, Ind. (AP) — Casino executives and an industry spokesman blame the recession and last summer’s $4-a-gallon gasoline prices for sending Indiana casino revenues down sharply last year.

Statewide figures released last week by the Indiana Gaming Commission showed revenues at Indiana’s 11 full-service casinos fell 8 percent to about $2.5 billion last year, compared with $2.7 billion in 2007, while admissions fell 6 percent.

It marked the first time ever that statewide revenues and attendance for the full-service casinos have fallen from the previous year.

When money from slot machines that appeared in June at the state’s two horse racing tracks was added, casino revenues totaled $2.67 billion in 2008.

“Obviously the economy has taken a big toll on Indiana casinos,” said Mike Smith, president of the Casino Association of Indiana, the state industry’s trade group. “It’s taken two more casinos to do same amount of business that 11 casinos did.”

Horseshoe Southern Indiana, formerly Caesars Indiana, saw its gross revenues decline 9 percent in 2008, while admissions sank by 12 percent. The Harrison County boat drew nearly 367,000 fewer visits from patrons in 2008, The Courier-Journal of Louisville, Ky., reported Saturday.

“I think we’re all just holding our breath,” said Horseshoe spokeswoman Judy Hess. “We’re all waiting for this to pass.”

Analysts and gambling executives noted that the recession hit all forms of legalized gambling, including horse racing and some state lotteries.

Slot machines at the two horse tracks, Hoosier Park near Anderson and Indiana Downs in Shelbyville brought in nearly $195 million through December.

Neither track is required by the gaming commission to report admission figures.

Ed Feigenbaum, publisher of a newsletter that follows the Hoosier gambling industry, said the surge in gasoline prices reduced people’s willingness to drive as much, so the so-called horse track “racinos” probably took in some money that might otherwise have gone to the full-service casinos.

A smoking ban at Illinois casinos also likely caused some gamblers to take their business to Indiana.

Hess said potential bettors facing a job layoff will tighten their discretionary spending and won’t go out as often to movies, restaurants and casinos.

“Whenever you trim your budget, you look at your entertainment dollars first,” she said.

Posted 1/12/2009