Mississippi Casinos’ May Rebound and the Future of iGaming

In a notable recovery from April’s downturn, Mississippi’s casino industry reported $209.6 million in revenue for May 2024. This 9.2% increase from the previous month indicates a positive trajectory as the state’s casinos head into the summer season. Despite this upswing, questions remain about the long-term stability of land-based gaming and the potential role of online casinos in Mississippi.

 

Revenue Recovery: A Breakdown

Mississippi's three main casino regions — Central, Coastal, and Northern — all contributed to May’s revenue resurgence:

• Central Region: $27.6 million
• Coastal Region: $136.5 million
• Northern Region: $45.6 million

The Coastal region, which encompasses major gambling hubs like Biloxi and Gulfport, continues to be the primary driver of gaming revenue. Its $136.5 million in earnings for May represents a substantial portion of the state’s total, reflecting both its established gaming infrastructure and popularity as a tourist destination.

In contrast, the Central and Northern regions, with their smaller gaming markets, collectively contributed $73.1 million. This is significant, but underscores the dominance of the Coastal region in the state's gaming economy.

Despite the overall positive month-to-month trend, it’s important to note that May 2024’s revenue slightly declined by 0.29% compared to May 2023’s $210.2 million. This marginal decrease may suggest that while recovery is evident, the market still faces challenges in reaching and surpassing previous highs.

 

Historical Trends and Projections

To contextualize May’s rebound, a look at the revenue trends over the past 13 months reveals a pattern of fluctuation:

• High Points: March 2024 ($235.1 million), December 2023 ($219.8 million), and July 2023 ($218.6 million) show that the state’s casino revenue tends to peak around specific periods, often aligning with holiday seasons and summer vacations.
• Low Points: April 2024 ($192 million), January 2024 ($180.3 million), and October 2023 ($191.1 million) demonstrate dips, possibly reflecting post-holiday spending slowdowns and seasonal variations.

Based on these patterns, projections for June 2024 suggest a potential revenue dip below the $200 million mark, consistent with the decline seen from May to June in previous years. However, if historical trends hold, July might witness a rebound, driven by summer tourism and increased disposable income.

 

The iGaming Conundrum

While the resurgence of land-based casino revenue is promising, the future of online casinos in Mississippi remains uncertain. The state’s conservative political landscape and legislative hurdles have stalled progress on legalizing online sports betting, a critical step towards establishing online casinos.

Matthew Kredell, a legal analyst at PlayUSA, suggests that Mississippi could eventually see the introduction of online casinos. He notes that the state’s robust physical sports betting revenue, which has grown by at least 10% over the past two years, could provide a financial incentive for lawmakers to consider iGaming. If online casinos were legalized, PlayUSA estimates they could have generated more than $50 million in revenue for May 2024 alone.

Comparatively, states like Pennsylvania, Michigan, and New Jersey, with their larger populations and established online gaming markets, reported revenues of $216.5 million, $198.6 million, and $192.1 million respectively for May. In smaller states, such as Connecticut and West Virginia, May revenues were $46.3 million and $17.9 million, respectively. Delaware, with its even smaller market, reported $3.9 million. These figures translate to a per-capita revenue ranging from $9.94 in West Virginia to $20.65 in New Jersey, with an average of $17.32. If Mississippi were to legalize online casinos and achieve this average per-capita revenue, the state could have seen an estimated $50.2 million in May 2024.

 

“May’s $209.6 million in casino revenue reflects a significant rebound from April, demonstrating the sector's resilience as Mississippi heads into the summer, despite ongoing challenges and uncertainties about the future of online gaming.”

 

Conclusion: Balancing Tradition and Innovation

Mississippi’s casino industry has demonstrated resilience with a strong recovery in May 2024, positioning itself well for the summer season. The continued dominance of the Coastal region and the overall upward trend in revenue offer a hopeful outlook for the state's gaming sector.

However, the conservative stance on online gaming presents a complex challenge. While the revenue potential for online casinos is considerable, realizing this potential requires navigating political and cultural barriers. As the state evaluates its future in gaming, balancing the stability of traditional, land-based casinos with the innovation and potential revenue of online platforms will be crucial.