Kansas Casino Revenue Drops 10.3% in September

In September 2024, Kansas casinos generated a total revenue of $32.3 million, marking a 10.3% decrease from the previous month's earnings of $35.9 million, according to data released by the Kansas Lottery. This revenue figure represents the second-lowest monthly total for the year and the fourth-lowest over the past 12 months, highlighting a concerning trend in the state’s gaming landscape.

 

Revenue Trends and Monthly Performance

The Kansas Lottery's September report reveals a stark decline in revenue compared to August, when casinos enjoyed a 6.3% increase. The month-to-month fluctuations indicate a volatile market for land-based gaming facilities, which collectively earned $32,259,370 in September. This figure represents not only a decline from the previous month but also a year-on-year drop of 2.5%, with revenues falling $832,660 from $33.1 million in September 2023.

A detailed look at the monthly revenue trends illustrates this volatility:

Month	Total Revenue	% Change (Monthly)
September 2024	$32,259,370	-10.26%
August 2024	$35,945,924	+6.31%
July 2024	$33,812,231	+2.75%
June 2024	$32,908,743	-8.91%
May 2024	$36,125,880	+3.43%

 

Hollywood Casino and Kansas Star Casino tied for the highest revenue this month, each generating approximately $12.6 million, while Boot Hill Casino and Kansas Crossing Casino reported revenues of $3.9 million and $3.2 million, respectively. A critical factor impacting Kansas casino revenue is the absence of legal online gaming, or iGaming, in the state. Kansas remains one of 43 states that do not permit online casinos, a situation unlikely to change in the near future. Legislative activity around iGaming has been stagnant, with no significant bills introduced to facilitate its legalization.

Analysts from PlayUSA project that when Kansas lawmakers eventually approve online casinos, the state could see monthly revenues exceeding $50 million. This projection is based on revenue patterns from states with established online gaming markets, such as Pennsylvania and New Jersey, which have reported significant per-capita earnings from iGaming. For instance, Pennsylvania reported August online casino revenues of $225 million, with a population of 13 million, translating to a per-capita revenue of approximately $17.31.

Given Kansas's population of about 2.9 million, projections estimate that its potential iGaming market could yield revenues of $50.5 million, based on average performance metrics from other states.

The Future

The decline in September's revenue, coupled with the stagnation of online gaming legislation, raises pressing questions about the long-term sustainability of Kansas's casino industry. As neighboring states, such as Missouri and Iowa, continue to expand their gaming options—including the lucrative online sector—Kansas risks losing its competitive edge. This situation is further exacerbated by the growing popularity of iGaming nationwide, which has proven to attract significant audiences and generate substantial revenue.

The current downturn in revenue may serve as a wake-up call for stakeholders, including casino operators, investors, and lawmakers, to reconsider their positions on online gaming as a viable avenue for revitalizing revenue streams. With the potential for substantial financial gains from a regulated online gaming market, failure to act could leave Kansas’s casinos struggling to maintain profitability and attract a wider audience. As consumer preferences increasingly shift toward online gaming options, the urgency for legislative change becomes more pronounced.

In conclusion, while September 2024's casino revenue figures illustrate a decline, they also represent a pivotal moment for reflection and reassessment within Kansas's gaming sector. The ongoing absence of online casinos stands as a significant hurdle, suggesting that proactive legislative action may be crucial not only for enhancing revenue but also for safeguarding the state's economic prospects in the competitive landscape of gaming. As other states move forward with modernization and innovation, Kansas must evaluate its strategies to ensure it remains a player in the evolving gaming market.