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Kansas Casinos See Revenue Growth in July

Kansas casinos saw a 2.7% revenue increase in July 2024, recovering from a June decline. The state's lack of legal online casinos highlights a missed opportunity, with projections suggesting potential monthly revenue of nearly $50 million.
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Branimir Ivanov | Senior News Contributor

Updated: Sep 13, 2024

Good Q3 for Kansas?

Kansas's four commercial casinos rebounded in July, posting a 2.7% increase in revenue after a challenging June that saw an 8.9% decline, according to newly released data from the Kansas Lottery. This marks the fourth time in 2024 that casino revenues have risen month-over-month, reflecting a positive trend in the state's gaming sector.

July’s performance brought in a combined total of $33.8 million from the state's commercial casinos, with each property reporting growth compared to June. Pittsburg’s Kansas Crossing Casino led the surge, boasting a 9.2% jump in revenue from $3 million in June to $3.3 million in July.

 

The Key Numbers

  • Bouot Hill Casino: $3.8 million in July, a 4.6% increase from June's $3.6 million.
  • Kansas Star Casino: $12.95 million in July, up 1% from $12.8 million in June.
  • Hollywood Casino: $13.72 million in July, a 2.4% rise from $13.4 million in June.
  • Kansas Crossing Casino: $3.33 million in July, marking a 9.2% increase from $3.05 million in June.

Despite this positive monthly performance, Kansas casinos are still grappling with a revenue decline compared to the same period last year. The Kansas Lottery's Fiscal Year-to-Date comparison shows a 1.2% drop in yearly revenue, driven primarily by a $400,000 decrease in earnings at Kansas Star Casino.

 

The Missed Opportunity of Online Casinos

While the state’s brick-and-mortar casinos showed resilience in July, the absence of legal online casinos in Kansas represents a significant missed opportunity for revenue growth. Only seven states currently allow legal online casinos, and Kansas is not among them, despite its early adoption of online sports betting.

Projections from PlayUSA suggest that legal online casinos could generate as much as $50 million per month for Kansas, based on state-level iGaming revenue reports and population data from the Census Bureau. For comparison, Pennsylvania, which has a similar per-capita revenue rate to Kansas, reported $215.3 million in online casino revenue for July 2024.

 

“Kansas casinos saw a solid rebound in July with a 2.7% revenue increase, but the absence of legal online casinos continues to be a missed opportunity for significant additional revenue.”

 

Revenue Trends and Future Outlook

Kansas's casino revenue has fluctuated throughout the past year, with July marking the seventh month of growth out of the last 13. The inconsistency in monthly earnings highlights the volatility in the state's gaming market, where revenue tends to rise or fall sharply on a month-to-month basis.

In the fiscal year 2024, which ended in June, Kansas casinos managed to post a slight annual revenue increase, bringing in $408 million, compared to $407 million in FY2023. However, the state's gaming operators continue to face challenges in sustaining consistent growth amid economic uncertainties and changing market dynamics.

As Kansas’s lawmakers consider the potential for legalizing online casinos, the state's gaming sector remains poised at a crossroads. The introduction of iGaming could provide a substantial boost to the state’s revenue, offering a more stable and growing source of income in a market that has otherwise shown signs of unpredictability.

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