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Plainridge casino snaps revenue slide
January figure is up 12% over December
By Sean P. Murphy
Globe Staff

Gambling revenue at Plainridge Park Casino shot up by $1.3 million in January, snapping a five-month skid and pumping up expectations for a strong spring.

Plainridge brought in $12.5 million last month, a 12 percent increase over December and the highest monthly total since October’s $12.9 million, according to figures released Tuesday by the state Gaming Commission.

The state’s first casino, Plainridge still has an uphill climb to meet initial revenue projections that it would bring in as much as $300 million in its opening year.

In its first seven months, the Plainville slot parlor took in $94.4 million in revenue, which puts it on pace to collect $162 million for the year.

But casino specialists said there is reason to be optimistic that Plainridge will exceed its current monthly draw of $13.5 million. Historically, business at casinos picks up as winter winds down, and casinos often have some of their best months in the spring.

“This is very encouraging for Plainridge,’’ said Paul DeBole, a Lasell College professor who has studied gambling in New England. “To throw the brakes on a downward slide is impressive.’’

December is typically one of the worst months for casinos because many people are focused on getting ready for the holidays and spending time with family, DeBole said. But January is usually a down month too, he said, making Plainridge’s double-digit gain all the more impressive.

Casinos often see a bump in business in February, when people get tired of staying at home, he said.

“For Plainridge to get the bump early, in January, that could be a good sign,’’ he said.

Clyde Barrow, a University of Texas professor who also studies gambling, characterized Plainridge’s performance as “not spectacular, not a disaster.’’

He said he expects the slot parlor to pull down about $160 million in its first year. But Plainridge’s revenue will likely decline within three years when much larger resort casinos are scheduled to open in Massachusetts.

“Those other casinos will chip away at Plainridge’s revenue,’’ he said.

Lance George, Plainridge’s general manager, said business at a newly opened casino is too unpredictable to draw conclusions about long-term revenue trends.

“January revenues for Plainridge Park Casino are a good example of what we have previously suggested, which is that activity ebbs and flows after a new facility is opened and that it will be some time before that pattern evens out,’’ George said in a statement.

The Gaming Commission said it was pleased by the increase, but added that “it is important to take a long term view beyond that of monthly indicators when considering the benefits of gaming to the Commonwealth.’’

Last month, Stephen P. Crosby, chairman of the Gaming Commission, said in a radio interview that Plainridge “is underperforming — there’s no question about that.’’

Crosby said Plainridge, which is about 35 miles southwest of Boston, is at a “tremendous competitive disadvantage’’ with Twin River Casino just 11 miles away in Lincoln, R.I.

While Plainridge is restricted under state law to 1,250 slot machines and no table games, Twin River offers more than 4,000 slot machines, table games, and a 3,000-seat arena. Twin River also allows smoking and has an age minimum of 18, while Plainridge bans smoking and has an age minimum of 21.

The state taxes Plainridge’s gambling revenue at 49 percent, most of which goes to cities and towns. That has totaled about $40 million since the casino opened last June.

The state’s 2011 casino law also requires that a sizable chunk of revenue — $9 million to date — help prop up the horse-racing industry.

State officials had counted on Plainridge to generate $128 million in annual tax revenue, but recently lowered that projection to $78 million.

Of three resort casinos allowed under the casino law, only two are in development.

Sean P. Murphy can be reached at smurphy@globe.com. Follow him on Twitter @spmurphyboston.