Hollywood Park posts $2.4 million loss for quarter.

It says costs of new card club are higher than expected

As expected, Inglewood-based Hollywood Park Inc. last week reported a net loss for the third quarter on revenues substantially larger than the year-ago quarter.

The company, which owns Hollywood Park race track and the new

In a statement, the company blamed its loss on higher-than-expected costs associated with its new card club casino, which opened July 1. Specifically, it said food, beverage and labor costs were higher than expected. But since the club opened, measures have been taken to cut those expenses.

The card club, located next to the race track, has laid off almost 100 of its 1,700 employees since it opened.

In addition to the higher-than-expected casino costs, the company cited increased competition experienced by its Woodlands racing facility in Kansas City, Kan. Attendance at that track dropped 17 percent and wagering fell 22 percent after a riverboat gambling facility opened on the Missouri River earlier this year, Hollywood Park reported.

For the nine months ended Sept. 30, the company reported a net profit of $1 million on revenues of $79 million, compared with net income of $5.4 million on revenues of $59.6 million for the like 1993 period.

Hollywood Park Chairman and Chief Executive Officer R.D. Hubbard said in a prepared statement that, in addition to job cuts, the company has changed its policy on free food and beverages at the card casino. Gambling industry analysts have said as much as 30 percent of the casino's total food and beverage volume was being provided free to patrons.

The industry average for free food and beverages for casino patrons is between 10 percent and 15 percent, according to the analysts.

Other than the higher-than-expected costs at the card casino, Hubbard said he was pleased with the Inglewood operation.

Without releasing figures, Hubbard said he was satisfied with attendance at the casino, and that wagering revenue at the race track is up between 20 percent and 30 percent from a year ago. He said in the statement that attendance at the track is also up between 5 and 10 percent from a year ago.

Despite the company's third-quarter loss, Hubbard said the track is moving ahead with expansion plans to make wagering on Hollywood Park races available at more off-track facilities. He said the company is also moving forward with plans to build a card club casino in Compton.

In addition to the Hollywood Park and Woodlands race tracks, and the new card club, Hollywood Park Inc. also owns the Turf Paradise race track in Phoenix.