CEO of W.Va.-based MTR Gaming Group resigns
MTR Gaming Group Inc., beset with problems in the competitive casino industry, is losing its president and CEO.
Jeffrey J. Dahl, who has headed West Virginia-based MTR Gaming since January 2011, on Tuesday made public his resignation. MTR said he would continue his role with the company that runs casinos in Erie and Chester, W.Va., until his replacement is hired. Dahl immediately relinquished his board seat.
A company statement said Dahl is leaving “to pursue other business opportunities.”
Dahl, Chairman Steven Billick and CFO John Bittner declined to comment.
MTR Gaming runs Presque Isle Downs & Casino in Erie and Mountaineer Casino, Racetrack & Resort in Chester. Last year, it added slot machines to its Scioto Downs harness-racing track in Columbus, Ohio.
All three operations face significant market competition, said Alex Bumazhny, director of Fitch Ratings' gaming, lodging and leisure group in New York.
“They have one of the toughest operating profiles in the industry,” Bum-azhny said. “Overall, MTR as a company faces a lot of challenges.”
In March, MTR Gaming posted revised fourth-quarter figures showing net revenue growth of 12.2 percent. The $32.4 million in revenue during the second quarter of operations at Scioto Downs, however, helped offset double-digit losses at Mountaineer and Presque Isle.
Mountaineer's net revenue fell 15.8 percent in the fourth quarter, from $55.8 million to $47 million.
Presque Isle's net revenue decreased 22.3 percent, from $47.5 million in the fourth quarter of 2011 to $36.9 million in the same quarter of 2012.
The Erie County casino has lost slots revenue monthly since Horseshoe Casino Cleveland opened in May. Slot machine revenue at Presque Isle for the 2012-13 fiscal year, which ends in June, has fallen 17.8 percent so far this year.
That was expected, said Pennsylvania Gaming Control Board spokesman Doug Harbach.
“The bottom line is, Presque Isle's revenue at this stage is still commensurate to where it was expected to be when it opened,” Harbach said. “It has taken a downturn, but that is not something the board is surprised by, given the Cleveland casino's opening. ... They had a significant portion of their business coming from Ohio in their first few years.”
The Presque Isle and Mountaineer operations could be challenged further if Youngstown, Ohio, lands a casino-racetrack and slots parlors open in suburban Cleveland, Bumazhny said.
“They could face additional pressures,” he said.
In a statement, Dahl said he was proud “of the progress and accomplishments we created at MTR Gaming during my tenure. ... I'm confident the company will continue to prosper.”
Company documents filed with the SEC listed Dahl's salary as $630,000, not counting bonuses and other forms of compensation.
Jason Cato is a staff writer for Trib Total Media. He can be reached at 412-320-7936 or jcato@tribweb.com.
