Louisiana Casino Industry Late Summer Surge

August marked a strong rebound for Louisiana's casino industry, with revenues from land-based, riverboat, and racetrack casinos climbing 7.7%, from $178.9 million in July to $192.7 million. This growth reflects both the enduring strength of the state’s gambling market and the opportunity for further expansion as the possibility of online casinos emerges.

Louisiana’s 14 riverboat casinos drove much of the revenue surge, reporting a combined 8.2% rise in August. Five of these venues achieved double-digit growth, with Horseshoe Bossier City standing out with a remarkable 81.5% increase in revenue. The Belle of Baton Rouge and L’Auberge Lake Charles also saw significant increases, contributing to the robust performance of riverboat operations.

The key reasons for this uptick include increased tourism, favorable local conditions, and potentially aggressive promotional strategies by casino operators. While the August numbers reveal short-term success, they also underscore the importance of these riverboat casinos to the state’s overall gaming sector, which continues to thrive despite the absence of online casino offerings.

In addition to riverboats, the state’s racinos—the horse tracks that feature slot machines—posted a 5.8% increase in revenue. Delta Downs led the racino pack with a 9.5% rise, adding approximately $1.2 million to its total monthly earnings. Even Harrah’s New Orleans, the state’s only land-based casino, saw a 6.7% jump in August, contributing to the broader gains across all types of gaming establishments.

This broad-based growth signals a strong foundation in Louisiana’s casino market. The state's gaming operations, particularly riverboats and racinos, have positioned themselves well in a landscape dominated by in-person gaming experiences.

 

The Potential for iGaming

While Louisiana’s casinos are experiencing growth, they are missing out on a massive opportunity: online casinos, or iGaming. Online casinos are illegal in the state, preventing operators from capturing a share of this growing market. However, projections based on PlayUSA’s analysis suggest that Louisiana could have generated over $75 million in online casino revenue in July alone. This is significant when considering that total gaming revenue reached $192.7 million for all land-based and riverboat operations in August.

If Louisiana were to legalize online casinos, the state would likely become a top-five market, joining established iGaming states like Pennsylvania, Michigan, and New Jersey. In these states, per-capita iGaming revenue ranges from $9.94 to over $20, and Louisiana, with a population of 4.5 million, could tap into this potential gold mine. Based on these figures, iGaming could add tens of millions of dollars in monthly revenue, boosting the state’s overall gaming industry.

The conversation surrounding iGaming in Louisiana may soon take a critical turn. In October, the Louisiana Senate Committee will begin studying online casinos, examining the pros, cons, and best practices for potential legalization. This study could lay the groundwork for legislative action as early as next year.

Key operators like FanDuel and DraftKings, which already run online sportsbooks in the state, are expected to lobby in favor of iGaming. These companies already have significant experience running online casinos in other states, and their involvement could further incentivize legislators to move quickly on the issue.

If the study's findings are positive, Louisiana could see an iGaming bill by next year, offering a clear path to one of the largest expansions of its gaming market in years. With existing online sportsbook infrastructure in place, the transition to online casinos would be seamless for both operators and the state.

 

 

Looking Ahead: The $200 Million Threshold

As Louisiana’s casino industry approaches the end of the year, revenue is on track to exceed $200 million per month, buoyed by strong riverboat performance and the growing popularity of racinos. However, this number could be significantly larger with the inclusion of iGaming. If the state were to capitalize on this opportunity, total gaming revenue could easily surpass current projections, potentially transforming Louisiana into a national leader in the casino industry.

As the state prepares to explore the legalization of online casinos, Louisiana’s gaming sector is primed for growth on all fronts. Whether through continued improvements in riverboat and racino performance or the addition of a legalized iGaming market, Louisiana appears set to expand its already robust gaming industry into new and profitable territories.

The 7.7% surge in Louisiana’s August casino revenue is a promising sign of a thriving industry. However, the potential legalization of iGaming could unlock even more growth, adding tens of millions to the state's gaming earnings. With the Louisiana Senate Committee poised to examine online casinos, the stage is set for a potential transformation in the state’s gaming landscape, positioning Louisiana as a major player in both physical and online gaming markets.