Indiana Casinos Rebound, but Missed Opportunities Linger

Indiana’s land-based casinos experienced a significant upswing in revenue in August, reaching $200.2 million, according to the Indiana Gaming Commission (IGC). This figure marks a 7.2% increase from July 2024 and represents the third time this year that casino revenue has exceeded the $200 million mark. The August result is notable, especially given that it is the first month in which revenue has risen since May.

While August’s performance is encouraging, it is tempered by the ongoing absence of legal online casinos, or iGaming, in Indiana. Data suggests that legalizing iGaming could have generated an additional $116 million in revenue for July alone. This figure is based on projections by PlayUSA, which estimate that Indiana’s iGaming market could have performed similarly to other states with legalized online casinos.

The legislative landscape surrounding iGaming has been fraught with challenges. A 2023 attempt to pass an iGaming bill failed after an analysis predicted it would harm land-based casino operations. This analysis led to concerns among lawmakers, who ultimately did not advance the bill. However, follow-up studies have since contradicted the initial findings, suggesting that the earlier analysis was flawed. Despite this, there has been no renewed effort to advance iGaming legislation.

In the meantime, Indiana’s casino operators continue to miss out on substantial revenue opportunities. For example, based on data from seven states with legal online casinos, the per-capita revenue from iGaming in these states significantly surpasses what Indiana could potentially earn if iGaming were legalized. In July, states with legal online gaming such as Pennsylvania and New Jersey saw substantial revenue, averaging $96.1 million. For Indiana, projections suggest that legal iGaming could generate approximately $116.3 million monthly, further underscoring the lost opportunity.

In August, Harrah’s Hoosier Park was the top performer among Indiana’s casinos, with a $3.5 million increase in revenue. Caesars Southern Indiana and Horseshoe Indianapolis followed closely, each showing a rise of $2.6 million. Belterra Casino also contributed significantly, with a $1.5 million increase. These gains highlight the strong performance of Indiana’s casino sector despite the constraints of the current regulatory environment.

 

 

Conclusions

Overall, 12 out of the state’s 13 casinos reported positive revenue growth in August. The total casino revenue for the month was the third highest of the year, following $205.2 million in May and $207.3 million in March. This indicates a robust recovery in the sector, even as the state and its casinos continue to grapple with the limitations imposed by the lack of iGaming.

In summary, while Indiana’s casinos are enjoying a resurgence in revenue, the potential for greater financial gains remains untapped. The debate over iGaming legislation continues to be a critical issue, with significant implications for both the state's economy and the casino industry.