Virginia Casino Revenue Declines in June

Virginia casinos experienced a revenue drop in June, generating $59.5 million, down 5.15% compared to May, according to the latest data from the Virginia Lottery. Despite this decline, Virginia's performance was relatively stable compared to other states, which saw similar or steeper month-on-month declines.

Key Takeaways:

• Virginia online casinos represent a potential $100 million market.
• Land-based casinos saw a collective revenue drop of just over $3 million in June.
• A new casino may be established in Petersburg.

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The absence of online casinos in Virginia continues to be a significant missed opportunity. If legalized, online casinos could generate substantial revenue, potentially reaching $100 million monthly. According to PlayUSA's projections, based on revenue data from states with legalized iGaming and population data from the 2023 Census Bureau, Virginia could see substantial financial benefits from online casinos. For instance, Pennsylvania generated $216.5 million in online casino revenue in May with a population of 13 million, translating to $16.65 per capita. Similarly, Michigan and New Jersey reported high per-capita revenues of $19.86 and $20.65, respectively. Applying a comparable per-capita revenue of $12.27 to Virginia's population of 8.7 million suggests that Virginia could have earned $106.7 million from online casinos in May.

Despite this potential, the push for online casinos has seen little progress among lawmakers, who remain focused on land-based casino developments.

Virginia currently hosts three operational casinos: Rivers Casino Portsmouth, Caesars Virginia, and Hard Rock Bristol. In June, all three reported revenue declines compared to May:

• Rivers Casino Portsmouth: Generated $25.95 million in June, down 3.90% from $27.00 million in May.
• Caesars Virginia: Generated $19.22 million in June, down 5.26% from $20.28 million in May.
• Hard Rock Bristol: Generated $14.35 million in June, down 7.20% from $15.46 million in May.

While these monthly numbers were down, the casinos fared well year-over-year. Revenue was up $7.3 million in June compared to June 2023, marking a 14% increase. In a wider context, Virginia’s June revenue was solid despite the May-to-June slide. For example, Indiana casinos experienced a sharper decline of 9.8% month-on-month, though their yearly revenue increased by 3.7%.

When casinos were legalized in Virginia a few years ago, lawmakers approved properties in five cities: Bristol, Danville, Norfolk, Portsmouth, and Richmond. However, the legalization came with a caveat: local voters had to approve their casino. Votes went smoothly in Bristol, Danville, Norfolk, and Portsmouth, leading to the opening of casinos in three of these cities. Norfolk’s casino developer, however, has faced multiple hurdles and has yet to open.

The fifth city, Richmond, put a casino to a referendum vote twice, and both times locals voted “no.” As a result, Virginia lawmakers ended Richmond’s casino eligibility and awarded a casino referendum vote to Petersburg, potentially paving the way for a new casino in the state.

Despite a slight downturn in monthly revenues, Virginia's casinos are showing steady long-term growth. The potential for online casinos remains significant, representing a substantial untapped market.

Conclusion

Despite a slight downturn in monthly revenues, Virginia's casinos are showing steady long-term growth. The potential for online casinos remains significant, representing a substantial untapped market. As the state navigates the complexities of casino development and legalization, both land-based and online casinos could play crucial roles in shaping Virginia's gaming industry future.