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It’s been a rough summer for Indiana casino revenue.
For the second straight month, taxable casino revenue was down again after falling in June, marking the first time this year that casinos suffered back-to-back monthly revenue losses. Revenue dropped 1.9% from June to July, and yearly revenue was down 3.1%.
The sting of months like July should be a wake-up call for legislators who’ve yet to legalize online casinos in the Hoosier State.
Key takeaways
- Online casinos aren’t legal in Indiana, but if they were, casinos could bring in tens of millions in additional revenue.
- Land-based casinos posted $186.7 million in revenue in July, down nearly $4 million from June.
- Only one of the state’s land-based casinos saw its revenue rise from June to July.
- Casinos could be in for another revenue decline next month.
Online casinos could ease the pain of bad revenue months
One of the great things about online casinos is that customers can play in virtually any situation. Bad weather, sickness or lack of time to drive back and forth to a land-based property would deter trips to land-based casinos; not so with online casinos. Players can create an account, deposit money, and play online slots and table games from their living room couch.
Adding to that benefit is the fact that casinos can generate a considerable amount of revenue from iGaming without having to build a new property, buy hundreds of slot machines, or go through all the local regulatory hurdles facing casino development. Based on June iGaming revenue numbers and data from the Census Bureau, PlayUSA predicts that iGaming could’ve brought Indiana casinos more than $84 million in June:
| June online casino revenue | Population (according to 2023 Census Bureau data) | Per-capita revenue | |
|---|---|---|---|
| Pennsylvania | $216.5 million | 13 million | $16.65 |
| Michigan | $198.6 million | 10 million | $19.86 |
| New Jersey | $192.1 million | 9.3 million | $20.65 |
| Connecticut | $46.3 million | 3.6 million | $12.86 |
| West Virginia | $17.9 million | 1.8 million | $9.94 |
| Delaware | $3.9 million | 1 million | $3.90 |
| Rhode Island | $2.3 million | 1.1 million | $2.09 |
| Average | $79.8 million | 6.5 million | $12.27 |
| Indiana | $84.7 million | 6.9 million | $12.27 |
Despite the considerable revenue that online casinos could bring the state, lawmakers have balked at legalizing iGaming. In 2023, a push to legalize Indiana online casinos failed because a fiscal analysis indicated that iGaming could result in land-based casinos losing 30% or more of their revenue. Subsequent studies proved the analysis wrong, but the new evidence didn’t sway lawmakers. So, for now, online casinos are dead.
July revenue falls 1.9%, down 3.1% year on year
Eleven of the state’s 13 land-based casinos saw their revenue fall from June to July, leading to a $3.6 million loss.
| July 2024 adjusted gross revenue | June 2024 adjusted gross revenue | Month-on-month growth (%) | |
|---|---|---|---|
| Hard Rock Casino Northern Indiana | $36,063,860 | $34,293,625 | 5.16% |
| Horseshoe Indianapolis | $22,646,660 | $22,928,848 | -1.23% |
| Caesars Southern Indiana | $19,189,655 | $19,653,112 | -2.36% |
| Horseshoe Hammond | $18,218,536 | $19,454,526 | -6.35% |
| Harrah's Hoosier Park | $16,263,481 | $16,519,009 | -1.55% |
| Ameristar Casino | $13,058,434 | $14,005,390 | -6.76% |
| Bally’s Evansville | $13,057,864 | $14,042,553 | -7.01% |
| Hollywood Lawrenceburg | $11,084,847 | $11,637,110 | -4.75% |
| Terre Haute Casino | $10,503,283 | $11,378,254 | -7.69% |
| Blue Chip Casino | $10,389,896 | $10,639,402 | -2.35% |
| French Lick Resort | $6,768,474 | $5,845,308 | 15.79% |
| Belterra Casino | $6,186,336 | $6,484,290 | -4.60% |
| Rising Star Casino | $3,315,074 | $3,486,423 | -4.91% |
| Total | $186,746,400 | $190,367,850 | -1.90% |
What’s concerning about July’s numbers (and June’s, for that matter) is that Terra Haute Casino Resort opened in April, which should’ve driven numbers up month-on-month as the casino reached revenue maturity. However, that hasn’t been the case for monthly or yearly revenue. Despite having one additional casino, yearly revenue dropped from $192.7 million in July 2023 to $186.7 million this past month.
Though July’s revenue landscape was barren, there were some signs of life. Hard Rock Casino Northern Indiana, the state’s flagship casino, enjoyed a 5.2% revenue increase. Also, French Lick Resort’s numbers went up 15.8% from June to July.
What’s ahead for Indiana casinos?
As we look ahead to the rest of the year, it’s likely that July’s revenue decline won’t be the last one we see. In 2023, casino revenue dipped 8.3% in August, held steady in September, and dropped again in October. Using Indiana’s 2023 revenue trends as a guide, it’s likely we’ll see numbers slide to around $171 million in August and eventually surpass $180 million in December:
| Month | Revenue | % change |
|---|---|---|
| July 2024 | $186,746,400 | |
| August 2024 | $171,269,575 | -8.29% |
| September 2024 | $171,272,511 | 0% |
| October 2024 | $164,367,671 | -4.03% |
| November 2024 | $167,034,273 | 1.62% |
| December 2024 | $181,181,998 | 8.47% |
With a new casino in the mix, we should see revenue break away from 2023’s patterns. However, there’s nothing in the past few months indicating a sustained revenue spike will happen.
