Indiana’s Casino Struggle in June – Slight Revenue Drop

Indiana casinos faced a challenging June, with revenue dropping nearly 10% from May, according to the latest data from the Indiana Gaming Commission. The state's 13 casinos collectively saw their revenue dip from $211 million in May to $190.4 million in June, marking a significant downturn.

Across-the-Board Decline

Indiana

IN Online Casinos

IN Sports Betting

Gambling Laws

IN Online Poker

IN Land Casinos

33 Casinos

All Casinos

June's revenue slump was universal across Indiana's casinos, with none posting positive growth compared to the previous month. The sharpest declines were noted at Harrah’s Hoosier Park and Horseshoe Indianapolis, which experienced drops of 19.6% and 17.3% respectively. Other notable decreases included French Lick Resort at 14.8% and Caesars Southern Indiana at 11.2%.

The Hard Rock Casino Northern Indiana saw its revenue fall from $37 million in May to $34.3 million in June, a decline of 7.4%. Horseshoe Hammond experienced a 6.5% decrease, with revenue dropping from $20.8 million to $19.5 million. Bally's Evansville and Ameristar Casino saw more moderate declines, with revenues decreasing by 4.7% and 4.3% respectively.

Hollywood Lawrenceburg and Terre Haute Casino reported revenue drops of 9.4% and 7.1%, while Blue Chip Casino saw a marginal decrease of just 0.2%. Belterra Casino's revenue fell from $7.1 million to $6.5 million, an 8.2% drop. French Lick Resort and Rising Star Casino reported decreases of 14.8% and 4.7%, with revenues falling to $5.8 million and $3.5 million, respectively.

Despite the downturn in traditional casino revenue, there’s significant potential for growth through online gambling. Current estimates suggest that real-money online casinos, if legalized, could generate over $80 million in monthly revenue for Indiana. This figure is derived from comparing Indiana’s population and potential market size to the seven states where online casinos are already legal and operational.

For example, Pennsylvania, with a population of 13 million, generates $216.5 million in online casino revenue monthly, equating to $16.65 per capita. Applying a similar per-capita revenue to Indiana’s population of 6.9 million yields a potential monthly revenue of approximately $84.7 million.

However, the legalization of online casinos in Indiana remains uncertain. The last significant legislative effort to introduce online gambling was in early 2023, but the bill failed partly due to concerns that online casinos could cannibalize land-based casino revenues. Subsequent studies have challenged this view, indicating that online casinos do not significantly detract from the earnings of their brick-and-mortar counterparts.

June's revenue decline poses a significant challenge for Indiana's casinos, but the untapped potential of online gambling presents an opportunity for substantial economic growth.

Economic Impact and the Future

Legalizing online casinos could provide a substantial boost to both the state’s casinos and its tax revenues. Despite the potential benefits, Indiana lawmakers have shown little inclination to revisit the issue in 2024. Should they decide to act, the state’s gaming industry might see a revitalization, offsetting losses experienced by traditional casinos and providing a new, significant revenue stream.

June's revenue decline poses a challenge for Indiana's casinos, reflecting broader trends in the national gaming market. However, the untapped potential of online gambling presents an opportunity for significant economic growth. The decision to embrace this potential rests with Indiana lawmakers, who must weigh the proven benefits against outdated concerns of market cannibalization.