Presque Isle Downs & Casino generated more than $163 million in revenue in its first year of operation, a number that pleased its officials but has them imagining they can do better.

Previously, consultants for the Erie County racetrack casino and the Pennsylvania Gaming Control Board had estimated that it would draw about $130 million to $140 million annually in pre-tax revenue -- what customers leave behind as their net losses in the slot machines.

It was forecast to be among the lesser tier of slots parlors in Pennsylvania, as many are predicted to make $200 million or more, 55 percent of which goes directly to state and local governments.

Its 1,999 machines are generating less than the statewide average, bringing in $268 per day per machine during the Presidents Day holiday week compared with $281 statewide and $306 at The Meadows Racetrack & Casino, which has 183 fewer machines.

Still, it's close enough to be satisfying, said Richard Knight, chief executive officer of Presque Isle Downs & Casino.

The machines have averaged $216 per day since opening Feb. 28, 2007, with the take much better initially and in summer months than recently. The racetrack casino has 750 employees, some of whom were laid off temporarily or had their hours cut back this winter, as the slots use experienced a seasonal slowdown that Mr. Knight said is typical in the industry. He said about 70 percent of the 145 employees affected by cutbacks have been restored to their former hours.

Mr. Knight said revenue would have been higher if not for opening during a weakening economy, and Presque Isle Downs & Casino will benefit in its second year from having established a market for itself and putting on an expanded thoroughbred racing schedule: 100 days starting in May instead of just the monthlong season in September.

A national publication, Thoroughbred Times, named Presque Isle Downs the best venue in the country recently in recognition of the high purses and the facilities at the track, including its synthetic racing surface.

Although Mr. Knight is hoping to increase revenue, some of the forecasts for Pennsylvania's casinos anticipated their volume would actually drop as more competition develops. The Majestic Star casino is expected to open on Pittsburgh's North Shore next year, and a racetrack casino in Lawrence County, even closer to Erie, after that.

"I don't think the one in Pittsburgh will affect us one bit," Mr. Knight said, suggesting that most of the facility's visitors from southwestern Pennsylvania make Presque Isle Downs part of a general tourism trip in summer months. He declined to speculate on the impact of Valley View Downs in Lawrence County, noting it doesn't yet have a gaming license.

He said the racetrack casino plans some improvements this year, including adding a deli and pizzeria to supplement its buffet, plus a bigger bar and more betting windows during racing season to relieve congestion. Its number of slot machines are about right, he said, but officials realized quickly that they had more of the newer-style, video-oriented slot machines than local customers wanted. Presque Isle Downs & Casino has replaced about 100 of those with traditional reel machines.