Missouri Casinos See Revenue Surge September 2024

Missouri's casino industry reported strong growth in August 2024, generating $163.4 million in revenue. This marks a 5.6% increase compared to July, extending a two-month streak of rising revenue after a sluggish summer. However, despite this momentum, Missouri lags behind other states in the burgeoning online casino sector, which remains illegal in the state.

 

Steady Gains for Missouri's Land-Based Casinos

Missouri’s casino industry has shown resilience, particularly in August, when 11 of the state’s 13 casinos posted revenue increases. The standout performer was Hollywood Casino St. Louis, which posted an impressive 11.5% increase, leading the state's recovery. Other notable growth came from Harrah's Kansas City (+8.5%), Isle of Capri Booneville (+8.1%), and St. Joseph Frontier Casino (+6.5%).

Here’s a snapshot of Missouri's top five performers in August:

• Hollywood Casino St. Louis: 11.5%
• Harrah’s Kansas City: 8.5%
• Isle of Capri Booneville: 8.1%
• St. Joseph Frontier Casino: 6.5%
• Ameristar St. Charles: 5.9%

While the overall month-on-month increase of 5.6% in August represents robust growth, the industry still operates under limitations. Missouri’s reliance on traditional, land-based casinos means the state misses out on the potentially lucrative market of online gambling.

 

The Missed Opportunity of Online Casinos

Missouri’s casino industry, although strong, could generate significantly more revenue if online gaming were legalized. According to estimates from PlayUSA, Missouri could have added over $100 million in revenue from online casinos in August alone, based on comparisons with states that allow iGaming.

For example, Pennsylvania, with a population of 13 million, generated $215.4 million in online casino revenue in July 2024. Michigan, with a smaller population of 9.3 million, earned $195.4 million. Missouri’s population of 6.2 million suggests a projected online revenue of around $104.5 million, based on the per-capita revenue seen in states like Michigan and Pennsylvania.

However, online casinos face steep opposition in Missouri. A combination of factors—ranging from entrenched land-based casino interests protecting their revenue, labor unions concerned about job losses, and anti-gambling advocates worried about problem gambling—creates a formidable barrier to expanding gambling laws. Notably, Missouri has yet to legalize even sports betting, a more modest form of gaming expansion compared to online casinos.

Missouri’s reluctance to embrace online gambling mirrors broader national trends. As of 2024, only seven states have legalized online casinos, and the path to iGaming in Missouri appears long and uncertain. The lack of sports betting, despite the presence of several professional sports teams, underscores the state’s conservative approach to gaming expansion.

At present, it seems Missouri is at least two to three years away from any serious legislative discussions about iGaming. During this period, land-based casinos will likely remain the primary source of gaming revenue, leaving potentially hundreds of millions of dollars on the table. Online gaming’s growth trajectory across the U.S. shows that the delay could cost Missouri significant revenue while other states capitalize on this digital frontier.

 

Conclusion

While Missouri's casino revenue growth in August is impressive, it pales in comparison to what the state could achieve if it embraced online gambling. Land-based casinos, led by Hollywood Casino St. Louis, are showing resilience, but without the addition of iGaming, Missouri’s gambling industry remains underutilized. Until the state addresses the legal and political barriers to online casinos, it will continue to miss out on a vital revenue stream that is fueling growth in other parts of the country.