Louisiana iGaming Decline Along National Trends

After experiencing significant revenue growth during the summer, Louisiana's casino industry faced a sharp downturn in September. According to data from the Louisiana Gaming Control Board, the state's casino revenue fell by 11.8%, dropping from $192.7 million in August to $169.9 million in September. This decline mirrors a national trend, where casino markets across the United States have also reported decreases in revenue during the same period. Notably, the state's figures do not account for online casinos, as iGaming remains illegal in Louisiana.

Key Revenue Insights

• Total Casino Revenue: $169.9 million in September, down from $192.7 million in August.
• Riverboat Revenue: Fell 12% from $147.3 million to $129.6 million.
• Racino Revenue: Dropped 8.9%, with the only land-based casino, Harrah’s New Orleans, reporting a similar decline.
• Positive Growth: Only two casinos posted revenue increases: Horseshoe Lake Charles (+21.5%) and Louisiana Downs (+0.2%).
• Projected Online Casino Revenue: Louisiana could have generated over $78 million in August if online casinos were legal.

The decline in revenue raises questions about the future of the state’s gaming industry, particularly in light of potential changes on the horizon. Currently, two committees in the Louisiana state senate are conducting a study on the implications of legalizing online casinos in the state. According to Senate Resolution 149, which was introduced by Senator Talbot, the committees are tasked with examining the potential regulatory framework, revenue implications, and other effects of legalizing iGaming. The findings are expected to be submitted by March 1 of next year, and if the results are favorable, lawmakers could legalize online casinos by summer 2025.

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However, these successes were overshadowed by broader declines in riverboat and racino revenue across the state. Revenue from riverboats dropped from $147.3 million in August to $129.6 million in September, while racino revenue fell by 8.9%.

The revenue decline can be attributed to a variety of factors, including shifting consumer behavior and increased competition from neighboring states with legal online gambling. According to projections from PlayUSA, Louisiana's online casinos could have generated over $78 million in August if they were legal, indicating a significant potential market that remains untapped. This figure is based on the revenue generated by similar states with established online gaming markets, such as Pennsylvania and New Jersey.

Conclusions

As Louisiana navigates this decline, the impending study on online casinos could hold the key to revitalizing the state's gaming revenue. With a projected timeline for legalization potentially set for next summer, stakeholders in the gaming industry are closely watching the legislative developments. The introduction of online casinos could provide a much-needed boost to the state's revenue, helping to offset the recent downturn in land-based gaming. As it stands, the Louisiana gaming landscape is at a crossroads, and the decisions made in the coming months will be crucial for its future viability.