Leroy’s results highest in 10 years

Feb 21, 2006 9:20 AM

American Wagering, Inc., which operates Leroy’s race and sports books, last week announced its fiscal year-end results, which closely followed the 2005 results released by the Gaming Control Board.

For the fiscal year ended January 31, Leroy’s sports books posted a 10 percent increase in sports wagering handle (total bet) over the previous fiscal year, and a 7.1 percent increase in total win.

Just like the other sports books in Nevada, Leroy’s enjoyed big baseball and basketball seasons, but squeaked by during the football and parlay card season.

Here’s a recap of results:

 

                              Handle            Win

Football              +10.7%          -0.5%

Baseball             +15.5%       +25.2%

Basketball             +3.1%       +36.4%

Miscellaneous    +91.6%      +20.9%

Parlay Cards      +14.9%        -56.3%

 

Leroy’s race handle for the fiscal year ended January 31, increased 39.2 percent from fiscal 2004 while race win increased 44.2 percent. Company officials attribute the increase in race handle and win to the additional locations that were opened in 2005.

The combined handle (both race and sports) increased 10.8 percent over the previous fiscal year while combined win increased 10.3 percent.

As a result, Leroy’s combined handle for the current fiscal year is the company’s highest in the past 10 years while the combined win is the third highest.

Victor Salerno, the Company’s CEO and President, said, "The record handle and modest increase in win from the Leroy’s operation provide a testament to the strength of the American Wagering brands and the revenue growth potential they provide," said Vic Salerno, the company’s CEO and president. "Leroy’s performed very well over the past year on continued solid consumer demand, our strong product offerings, and our effective marketing."

Salerno added that, while the increase in combined handle "exceeded our internal projections," the increase in combined win was slightly less than internal projections.

"We attribute this to poor results from professional football wagering during November and December that caused a decrease of 18.4 percent in pro football win (from the prior year) and a decrease of 56.3 percent in parlay card win (from the prior year)," Salerno said. "The combined win figure was stabilized and bolstered by better than internally projected results in college football wagering, college basketball wagering and hockey wagering."

Salerno also reported that enrollment in the Leroy’s player club — a kind-of slot club card that kicked off last May — increased 17.9 percent during the fourth quarter, bringing total membership in excess of 3,300 members. The player club is designed to reward players for their continued play at Leroy’s locations.

In other company news, the Nevada Gaming Commission is expected this week to approve American Wagering’s acquisition of Sturgeon’s Inn & Casino in Lovelock, Nevada.

Assuming regulators okay the purchase, Salerno hopes to close the sale and take over operations on March 1.

"We expect the Sturgeon’s operation to be immediately accretive to our bottom line and to further solidify our growth potential and expand our portfolio of customer experiences," Salerno said. "The impact of our achievements has translated into a stronger company with continued increases in profitability from our well-diversified revenue base."

American Wagering Inc. operates more than 60 Leroy’s sports and race books in Nevada, as well as Computerized Bookmaking Systems (CBS), a subsidiary that provides most of the bet processing equipment for the majority of Nevada’s race and sports books.