Big quarterly turnaround for Lakes Entertainment Inc.

Aug 11, 2009 5:09 PM
by Ray Poirier | While most gaming companies continued to report declines in revenue and profit for the second fiscal quarter, one firm, although much smaller than most of its competitors, reported a substantial turnaround during the period.

Lakes Entertainment Inc. (LACO) said that primarily because of the success of the Red Hawk Casino near Placerville, California, it enjoyed a profit of $2.8 million, up from last year’s loss of $5.2 million in the second fiscal quarter.

Related Articles:
Nevada revenues hit new low
Casino revenues still in freefall
Nevada revenues continue to slide
Also Check out our Race & Sports Section

Actually, for the first six months of the year, the company moved from a loss of $12.1 million in 2008 to a profit of $3.8 million this year.

The company built and operates a Las Vegas-style casino in Placerville for the Shingle Springs Band of Miwok Indians. It also manages Cimarron Casino for the Iowa Tribe of Oklahoma and the Four Winds Casino Resort for the Pokagon Band of Potawatomi Indians.

"Our revenue grew during 2009 primarily as a result of improved performance at the Four Winds Casino Resort and the opening of the Red Hawk Casino," said Lyle Berman, company CEO. "Red Hawk’s ability to achieve consistently strong operating results" was a major factor, he said.