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Iowa is the Hawkeye State for reasons completely unrelated to the gambling industry. However, Iowa’s gaming activity just came a little closer to reaching what would be an eye-popping sum of $2 billion in revenue during a fiscal year.
FY22-23 ended in June for Iowa’s casinos and it was a strong month, assisting in a slight overall increase for the entire fiscal year as compared to FY21-22. At the current rate of growth, $2 billion in revenue for such a period could cross Iowans’ field of vision within the next decade.
FY22-23 revenue total up 1.7% from previous term
Using the latest figures from the Iowa Racing and Gaming Commission (IRGC), the past fiscal year was a great one for Iowa. Gaming revenue in these reports includes win from:
- In-person and online sports betting
- Poker games at physical casinos
- Slot play at those casinos
- Table game activity inside casinos
For the IRGC, fiscal years begin on July 1 and end on June 30. During that period, revenue from the above sources amounted to $1,937,336,274.28. That’s an increase of about 1.7% or around $31.5 million from FY21-22.
Poker, slots and table games at the 19 casinos in Iowa accounted for the vast majority of that revenue. In those segments, revenue was flat compared to the previous fiscal year. FY22-23 dropped about $11.7 million which amounted to seven tenths of a percent.
If the state’s overall gaming industry can continue to grow equivalent to $31.5 million each year, FY24-25 could see $2 billion in such revenue. Continued growth in Iowa sports betting activity would be of use toward that goal.
Sports betting hits another high in FY22-23
Iowa’s legal physical and online sportsbooks didn’t disappoint in the past fiscal year, again topping themselves in terms of gross revenue. Compared to FY21-22, the books were up around 23.7% in terms of money won from bettors. They also continued their streak of setting a new record for themselves.
June’s numbers helped all segments of gambling in Iowa finish the year strong. Although revenue figures were down across the board compared to Iowa May 2023 revenue, each month is a somewhat individual time frame for the gambling industry.
Revenue from poker, slots, and table games was up 2.6% compared to June 2022 while sports betting revenue rose 7.9% based on figures from the IRGC. As Iowa’s gaming licensees enjoyed a strong June and FY22-23, so did the state itself.
Gaming licensees pay out more than $389 million in FY22-23
For the past fiscal year, various recipients of tax dollars from gambling activity in Iowa didn’t see a significant drop in their funding. Altogether, gaming licensees paid out $389.1 million of their taxable revenues in FY22-23.
That’s a very slight decline of about $4.6 million or 1.7% compared to FY21-22. However, the total for June 2023 alone of $31.6 million represented a year-over-year increase. Whether Iowa will see even more tax dollars from gambling activity in future fiscal years remains uncertain. However, all eyes are on Iowa casinos as a $2 billion revenue year seems to be getting ever closer.
