Missouri Casinos: A May Rebound Amid Legislative Challenges

In May 2024, Missouri casinos demonstrated resilience by bouncing back from a lackluster April, with revenue surging by approximately $7 million month-over-month. According to the latest Missouri Gaming Commission data, this growth was a much-needed reprieve after April's 11.1% revenue decline. Despite this rebound, the broader fiscal landscape shows a slight dip in annual revenue compared to the previous fiscal year, revealing the nuanced challenges faced by Missouri's gambling sector.

May’s Performance: A Detailed Look

Missouri's land-based casinos saw a collective 5% increase in revenue in May, totaling $163 million, up from April’s $155.9 million. Several casinos posted notable performances:

• Cape Girardeau: Achieved its third consecutive month of 5% growth, with positive growth in five of the past seven months.
• Bally’s Kansas City: Led with an 11% revenue increase in May and has experienced positive growth in nine of the past eleven months.
• Century Casino Caruthersville: Also showed positive revenue in nine of the past eleven months, with four of those months seeing double-digit growth.
• Ameristar St. Charles: Ended a five-month streak of declining revenue with a 4% increase in May.
  Conversely, Harrah’s Kansas City continued to struggle, recording its fifth consecutive month of negative revenue growth.

Casino Performance Overview

May 2024 saw a mix of performances among Missouri's casinos. Notable growth was observed at Bally’s Kansas City, which led with an 11% increase in revenue, rising to $11.9 million. Harrah’s Kansas City also showed a significant 9% increase, reaching $13.9 million, despite facing challenges in previous months. Hollywood Casino St. Louis had an 8% boost, with revenue climbing to $21.3 million. Other casinos such as Ameristar St. Charles and Argosy posted solid gains of 5% and 7%, respectively. Conversely, Horseshoe St. Louis saw no change from April, remaining steady at $12.2 million, while Isle of Capri Booneville experienced a slight decline of 1%, dropping to $7.6 million. The total monthly revenue for Missouri's casinos grew by 5%, reaching approximately $163 million, reflecting a robust recovery from April’s downturn.

This snapshot highlights the resilience and varied performance across the state’s casinos, with some properties showing strong month-on-month gains while others experienced stagnation or minor declines.

Despite the positive monthly performance, the fiscal year (FY) 2023-2024 has been challenging overall. Casino admissions dropped from 26.6 million at this point in FY 2022-2023 to around 26 million, a reduction in foot traffic that has translated into a $29.4 million (2%) decrease in revenue year-over-year.

Legislative Hurdles: Sports Betting and Online Casinos

The rebound in land-based casino revenue stands in stark contrast to the state’s legislative struggles concerning sports betting and online casinos. Missouri has failed to legalize sports betting after several attempts, which hampers the potential for online casino legalization. As noted by Matthew Kredell from PlayUSA, legislative gridlock in the Missouri Senate has turned what should be a straightforward process into a contentious issue.

“Usually it takes months for the Missouri Senate to break down into bickering and filibusters. This time, the animosity from the end of the last session, heightened by an election year, already has the Missouri Senate at a standstill,” Kredell commented earlier this year.

 

This gridlock means that the issue of sports betting will likely go to a ballot in November. If voters reject the proposal, sports betting—and consequently online casinos—could face significant delays, potentially pushing their legalization and implementation back by several years.

Missouri’s land-based casino sector is a vital part of the state's gaming revenue, but the lack of sports betting and online casinos represents a significant missed opportunity. Many states first legalize sports betting to acclimate lawmakers and the public to online gambling. This pathway helps bridge gaps in yearly budgets and funds essential state and local programs. Missouri’s failure to capitalize on these revenue streams leaves it lagging behind other states in terms of gaming revenue diversification and modernization.

The recent revenue increase in May provides a hopeful sign that Missouri's casinos can rebound from downturns. However, without legislative progress on sports betting and online casinos, Missouri may continue to forfeit substantial potential revenue, leaving its gaming sector reliant on traditional models in an evolving market landscape.

Conclusion

Missouri’s casino industry has shown resilience with a significant revenue rebound in May 2024. However, this positive momentum is overshadowed by broader fiscal year declines and persistent legislative challenges. The ongoing struggle to legalize sports betting and online casinos underscores the difficulties the state faces in modernizing its gaming sector. As Missouri continues to navigate these challenges, the path forward remains uncertain, with significant implications for the state's future gaming revenue and legislative priorities.