Lady Luck Casino Commences Operations Under a New Management Following Exit From Churchill Downs Incorporated
Lady Luck Casino Nemacolin has stepped out of its partnership with Churchill Downs Incorporated (CDI) and will not renew. Instead, Woodlands Fayette LLC will now be stepping up as the new partner.
Lady Luck has sold all of the assets controlled by CDI to Woodlands Fayette and also got another five years renewal from the Pennsylvania Gaming Control Board for the Category 3 resort casino license.
Initially, the license renewal was on shaky grounds as Lady Luck experienced a significant gross revenue crisis that spanned over seven years. In 2015, the company peaked at $35.2 million in revenue, after which a steady decline began.
A Closer Look at Lady Luck’s Revenue
- $32.2 million (2018)
- $32.9 million (2019)
- $20.2 million (2020)
- $23.7 million (2021)
- $22.2 million (2022)
The casino recorded $8.1 million in revenue through May 2023 and totaled just $22.2 million last year. The first 11 months of the fiscal year 2022-2023 saw Lady Luck generating just $9.2 million in tax revenue for the Keystone State. Since officially entering the market in 2013, Lady Luck has gathered over $289 million in gross income from slot machines and table games and over $140 million in tax revenue.
While Lady Luck has created impressive profits for Hardy, she hopes to make a significant financial turnaround with this new joint. The casino has a staff of 167 people, over 500 slot machines, and 26 table games.
About the License Renewal Hearing
Reps from the casino intimated to the public about the new plans and direction for the casino at the license renewal hearing. The hearing was held at the resort’s premises, and Lady Luck personnel submitted exhibits and presented testimony on various aspects of the resort’s operation since its last renewal.
The board also got information from local elected officials, community groups, law enforcement, and other state agencies. The follow-up hearing was held on Wednesday in Harrisburg before the board approved the license renewal.
A System Overhaul
Their new development plan includes a strategic redirection to transform Lady Luck into a promising and profitable operation. Other projects include a high roller area, a change to the gaming floor, and an entrance aesthetics upgrade.
Of course, Woodlands Fayette isn’t doing this alone. The network is partnering with RRC Gaming Management, a consulting firm based in Las Vegas, to help bring their aesthetics dream to life.
Woodlands Fayette, LLC is Hardy’s company, and they operate the Nemacolin Resort. This move is to attract new customers, keep old ones, and create an attractive environment for guests to ensure a premium resort experience.
A Little Piece of History
Lady Luck operates out of Nemacolin, a luxury resort in Western Pennsylvania. The resort was established by 84 Lumber businessman Joseph Hardy, covering over 2,000 acres, and is now managed by Maggie Hardy, who took over in 2002.
She partnered with Isle of Capri Casino to operate Lady Luck in 2013 after Churchill Downs took over in 2019 following the acquisition of Isele of Capri Casino by Eldorado Resorts as part of its plans to merge with Caesars Entertainment.
The Pennsylvania Gaming Control Board
The Pennsylvania Gaming Control Board monitors and certifies everything gambling involving 17 land-based casinos, online casino games, online sports wagering, and retail and Video Gaming Terminals (VGTs) at certified truck stops.
They also regulate online fantasy sports contests. There are six racetracks (Category 1) land-based casino industry in Pennsylvania, five independent casinos (Category 2), two resort (Category 3) casinos, and four mini-casinos (Category 4).
The board consists of seven voting members, three of whom the Governor appoints. The President pro tempore of the Senate, Minority Leader of the Senate, Speaker of the House of Representatives, and Minority Leader of the House of Representatives make one appointment each.
The board’s primary function is to award licenses and ensure a fair gambling environment. The board makes decisions by a substantial majority, i.e., one of the gubernatorial appointments, and four legislative appointees must approve the issuance of each license.
Limitations Imposed on Casino Operators
Gambling laws in Pennsylvania state that a player must be 21 years old and above. Land-based and online casinos must make information available about problem gambling to raise awareness of addiction.
Casino houses/platforms must also make corresponding hotline phone numbers available for professional help. Players in Pennsylvania must be within the state borders to access online casinos. In the case of defaulters, the state uses geo-fencing technology to ensure all loose ends are tied up.