Louisiana Casinos Thrive: March Revenue Growth Continues

While many of the country’s gaming markets faced challenges in February, Louisiana continued its upward trajectory, with growth extending into March. The state’s riverboat casinos, land-based casinos, and racinos all posted increases in adjusted gross revenue (AGR), signaling a promising trend for Louisiana’s gambling industry.

In March, riverboat casinos reported a combined AGR of $166.3 million, representing a significant rise from February’s numbers. Land-based casinos contributed $22.2 million to the total, while racinos, which are horse tracks with slot gaming, totaled $32.2 million. These figures indicate notable growth compared to the previous month.

However, Louisiana's online casinos remain nonexistent due to legal restrictions, depriving the state of potential revenue from this sector.

Key Takeaways:

1. Potential for Online Casinos: Legalizing online casinos in Louisiana could potentially generate over $80 million in revenue per month, based on similar markets. In March, racinos and casinos collectively generated over $200 million in revenue from casino gaming.
2. Racinos Lead Growth: Racinos posted positive monthly and annual gains, contributing significantly to the state's overall gaming revenue.
3. Seasonal Decline Expected: While Louisiana’s casinos experienced growth in March, industry analysts anticipate a decline in revenue through the spring and summer months, followed by a significant uptick in September.

While online casinos are feasible in states with legal brick-and-mortar casinos and online sports betting, the likelihood of Louisiana launching online casinos in the near future is low. Louisiana has been relatively slow in adopting online gambling compared to other states, having only launched online sports betting in January 2022. Additionally, online casinos are not yet a standard offering in most of the southern United States.

From a revenue perspective, the potential benefits of legalizing online casinos are evident. In March, top markets in the country generated substantial revenue, with Pennsylvania leading at $233.1 million, followed by Michigan at $215.2 million and New Jersey at $197.1 million.

Based on March’s data, legal Louisiana online casinos could generate over $82.5 million in revenue in a good month, potentially making Louisiana the fourth-largest online casino market in the country. Louisiana’s riverboat casinos experienced a notable surge in March, with a 16.3% increase in revenue compared to February, totaling $166.3 million. While the monthly growth was positive, AGR was slightly down year-on-year.

Similarly, the state’s four racinos showed positive momentum, bringing in $32.2 million in AGR in March, an increase of around $4.5 million compared to February. Year-on-year, racinos saw an 8.3% increase in AGR.

The robust performance of Louisiana’s racinos highlights their increasing significance in the state’s gambling landscape. March's 16.2% monthly growth in AGR indicates a strong consumer demand for racino offerings. With diverse entertainment options and convenient locations, racinos have become a popular choice for both local residents and tourists seeking gaming experiences.

Delta Downs, one of the leading racinos in Louisiana, experienced a substantial 16.4% increase in AGR, contributing significantly to the overall growth of the sector. Similarly, Louisiana Downs, Evangeline Downs, and Fair Grounds Race Course & Slots all reported double-digit growth in AGR, showcasing a broad-based expansion across the state’s racino offerings.

Looking ahead, Louisiana’s riverboat casinos and racinos are likely to mirror national revenue trends. AGR is expected to decline steadily from April to July or August, followed by a significant increase in September. Despite potential seasonal fluctuations, Louisiana’s gambling industry remains resilient, indicating ongoing growth and adaptation within the state’s gaming landscape.

“Louisiana’s gaming industry continues to thrive, with March's positive revenue figures demonstrating resilience in the face of broader market challenges.”

Conclusion

Louisiana’s gaming industry continues to thrive, with March's positive revenue figures demonstrating resilience in the face of broader market challenges. While the absence of online casinos limits potential revenue streams, the state's riverboat casinos and racinos have shown consistent growth, suggesting a healthy appetite for gaming entertainment among consumers. As Louisiana navigates the evolving landscape of gambling regulation, the industry's ability to adapt and innovate will be crucial in sustaining its upward trajectory.