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Kansas Casinos Close Summer with Strong Revenue Growth

Kansas casinos saw a 6.3% revenue increase in August 2024, led by Kansas Star Casino. Learn how steady growth and the potential legalization of online casinos could transform the state's gaming industry.
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Kansas

Branimir Ivanov | Senior News Contributor

Updated: Sep 25, 2024

Another Strong Summer Close in Kansas

Kansas' non-tribal casinos are finishing summer 2024 on a high note, reflecting significant gains in revenue. August casino revenue totaled $35.9 million, marking a 6.3% increase over July's $33.8 million, and the third-highest monthly total for the year. This growth, along with steady revenue gains throughout much of 2024, highlights the resilience of Kansas casinos as they weather both seasonal fluctuations and wider trends in gaming.

 

Sustained Growth in 2024

The upward trend in Kansas casino revenue is not an isolated event. Of the eight months from January to August 2024, six have shown positive revenue growth. This resilience can be attributed to factors like strong foot traffic, seasonal promotions, and favorable economic conditions.

Comparing year-over-year numbers adds even more context. August 2023 saw a significant dip, with a 6.2% decline in monthly revenue. This year’s 6.3% gain in August creates a near mirror image, indicating a recovery from last year’s challenges. Furthermore, August 2024 revenue surged nearly 12% over the same month last year, when revenue hit $32.1 million. These gains underscore that Kansas casinos are not only recovering but thriving.

The bulk of this growth was driven by Kansas Star Casino, which posted an 8.9% rise in revenue, contributing an additional $1.2 million from July to August. Kansas Star's performance alone accounted for more than half of the total statewide increase. Other casinos, like Boot Hill and Hollywood Casino, followed suit, with respective gains of 8.6% and 5.4%. Only Kansas Crossing Casino saw a dip, with a 2.9% decline.

The strong performance of Kansas Star is particularly noteworthy, as it demonstrates the power of regional market dominance. Its strategic location near Wichita and regular entertainment offerings likely bolster its ability to draw large crowds consistently, even in months when the broader gaming industry can be sluggish.

 

Online Casinos

While Kansas casinos enjoy robust growth, a key revenue stream remains untapped: online casinos. Currently, online casino gambling is not legal in Kansas. If the state were to legalize it, the potential windfall could be immense. In July 2024, Kansas’ non-tribal casinos generated $33.8 million in revenue, but projections suggest that legal online casinos could have doubled that figure.

By comparing Kansas’ population to states where online gaming is legal, such as Pennsylvania and Michigan, we can estimate that Kansas could potentially generate $48.9 million in online casino revenue in a slow month like July. This figure is based on per capita revenue numbers from states with legalized iGaming, where online gaming revenue ranges from $9.94 to $20.65 per resident. Kansas, with a population of 2.9 million, fits neatly into that revenue model.

If Kansas were to legalize online casinos, the state could bring in over $40 million a month in additional revenue, possibly exceeding $60 million during peak months like December and March. These numbers suggest that online gaming could transform the Kansas casino market, opening up new streams of tax revenue and boosting the local economy.

 

The Hurdles to iGaming Legalization

Despite the attractive revenue potential, several factors make iGaming legalization an uphill battle in Kansas. Casino operators, though poised to benefit from online gaming, remain cautious. There is a persistent fear that iGaming might cannibalize the revenue from brick-and-mortar casinos. The idea is that players who can gamble from home might be less likely to visit physical casinos, cutting into in-person revenue.

Another concern is employment. Unions and workers’ groups fear that a shift to online gaming could lead to job cuts in land-based casinos. Additionally, some developers behind new casino projects worry about the long-term viability of their investments if iGaming siphons off a significant portion of the potential customer base.

These challenges are not unique to Kansas. Other states have faced similar resistance during the process of legalizing online gambling. Yet, the steady adoption of iGaming nationwide indicates that, eventually, the revenue argument often wins out.

 

“Kansas casinos saw a 6.3% revenue increase in August 2024, driven largely by Kansas Star Casino, signaling strong summer growth for the state's gaming industry.”

 

Conclusion

Kansas’ non-tribal casinos are enjoying a period of sustained growth, with August 2024 capping off a productive summer. However, the untapped potential of online casinos looms large over the industry. With estimates suggesting that legal iGaming could double the state’s monthly gaming revenue, the discussion around legalization is likely to heat up in the coming months and years.

While challenges remain—especially concerns over employment and the possible impact on land-based casinos—the potential for online gaming in Kansas is enormous. Whether Kansas lawmakers decide to pursue legalization will determine the next chapter in the state’s gaming history. For now, land-based casinos are thriving, but the future of Kansas gaming may well lie in the digital realm.

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