Illinois Casinos Continue Summer Slump

Illinois casinos faced another monthly revenue decline in July, continuing a summer slump despite a slight year-over-year increase. However, analysts suggest that the potential legalization of online casinos in the state could transform the market.

According to the Illinois Gaming Board, the state’s 15 land-based casinos reported a combined revenue of $135.8 million in July, a 1.8% decline from the $138.3 million generated in June. Despite this setback, revenue remained up 1.9% year-over-year, marking an increase of $2.6 million compared to July 2023.

 

Key Points

• Illinois Casino Revenue Decline: Illinois land-based casinos saw a 1.8% drop in revenue in July, continuing a summer slump, although yearly revenue remained up 1.9%.
• Online Casino Potential: Despite no current online gaming, Illinois has significant potential to generate over $150 million monthly from iGaming, potentially making it one of the largest markets in the U.S.
• Legislative Opportunities: Growing momentum around online gaming in other states and Illinois’ recent sports betting tax increase could push lawmakers to consider legalizing online casinos, offering a financial boost to the state.

 

While the overall revenue slide continues, the good news is that none of the casinos experienced double-digit losses in July—a marked improvement over June’s more dramatic declines. Hollywood Casino Aurora saw the most significant month-over-month growth, with a 9.1% increase in revenue. Similarly, Harrah’s Joliet Casino Hotel and Walkers Bluff Casino Resort posted gains of 5.5% and 4.3%, respectively.

On the downside, nine of the state's casinos reported revenue drops, with Par-A-Dice Hotel Casino suffering the steepest decline at -8.3%. Rivers Casino, the state's largest revenue generator, saw a 5.5% dip, while Hollywood Casino Joliet followed closely with a 5.3% decline.

Historically, Illinois casinos have seen revenue dips during the late summer months. Last year, revenue dropped by 6.6% from July to August, a pattern that could repeat itself this year. If that trend holds, Illinois casinos may see total revenue dip below $127 million in August.

 

The Case for Online Casinos in Illinois

As Illinois contends with consecutive monthly declines in land-based casino revenue, industry experts believe the legalization of online casinos could provide a much-needed financial boost. Though online casinos remain illegal in Illinois, other states have seen significant revenue streams from iGaming. States like Pennsylvania and Michigan, which have legalized online gaming, earned $216.5 million and $198.6 million, respectively, in June 2023.

According to estimates from PlayUSA, Illinois has the potential to generate more than $150 million in monthly online casino revenue during the summer, making it one of the largest iGaming markets in the country. If Illinois matches the per-capita earnings of states with similar populations, like Pennsylvania and Michigan, those projections could climb as high as $220 million per month.

This financial potential could reignite conversations about legalizing online casinos in Illinois. The state recently increased its sports betting tax, a move that some believe could pave the way for broader online gaming legislation. However, compared to states like Texas and Maryland, where online casino momentum has grown steadily, Illinois lawmakers have yet to take significant steps toward legalization.

 

Conclusion

Despite recent struggles, Illinois' land-based casino industry remains a vital part of the state's economy. However, ongoing revenue declines and the untapped potential of online gaming have industry insiders looking to the future. If Illinois lawmakers act on the state's substantial iGaming potential, it could reshape the gaming landscape and solidify Illinois as one of the nation's largest online casino markets.

As the state braces for a potential late-summer dip in revenue, all eyes are on the possibility of new legislation that could expand Illinois' gaming options and revive its struggling casino sector.