Virginia Casinos Experience Decline in January Revenue

Virginia's burgeoning casino industry experienced a slight downturn in January, according to the latest report released by the Virginia Lottery. The three operating casinos, namely Hard Rock Hotel & Casino Bristol, Rivers Casino Portsmouth, and Caesars Virginia, collectively generated $52.86 million in adjusted gaming revenue (AGR) last month. This figure represents a 9.67% decline from the record-breaking win of $58.52 million reported in December.

Breaking down the revenue streams, January saw a notable decrease in both slot and table game revenues. Slot revenue totaled $37.91 million, marking an 11.49% decline from December, while table game win amounted to $14.95 million, reflecting a 4.69% drop.

 

The Key Points

• January Revenue Dip: Virginia's casinos witnessed a 9.67% decline in adjusted gaming revenue compared to the record-breaking figures of December, signaling a temporary setback in the industry's growth trajectory.
• Rivers Casino Portsmouth Leads: Among the three operating casinos, Rivers Casino Portsmouth emerged as the top performer once again, boasting the highest number of slot machines and table games and reporting the smallest revenue decline from December.
• Tax Contribution Fluctuations: The drop in January's revenue was mirrored in tax contributions, with a significant 18.85% decrease compared to the previous month, reflecting the industry's inherent volatility and its impact on state revenue streams.

 

In terms of tax contributions, Virginia casinos paid $9.52 million in taxes in January, nearly 19% lower than the $11.73 million paid in December.

 

“While January showed a slight dip in revenue, the resilience of Virginia's burgeoning casino industry remains strong, with promising developments on the horizon.”

 

Rivers Casino Portsmouth Leads Among Virginia Casinos

 Rivers Casino Portsmouth emerged as the top performer among the trio of Virginia casinos, maintaining its position from previous months. According to the Virginia Lottery's January 2024 gaming report, Rivers Casino showcased a slight decrease in revenue from December. The casino boasts the highest number of slot machines (1466) and table games (81) compared to its counterparts, Caesars Virginia and Hard Rock Hotel & Casino Bristol.

Comparing the monthly revenue changes, Rivers Casino Portsmouth reported the smallest decline from December at 1.29%. Meanwhile, Caesars Virginia experienced a 12.67% monthly drop, and Hard Rock Bristol saw a significant decline of 19.07%.

Both Caesars Virginia and Hard Rock Bristol currently hold temporary casino licenses as they await the completion of their permanent locations. Once finalized, both venues are expected to expand their offerings with additional slots and table games. Hard Rock Hotel and Casino has announced plans to open in the summer, while the Caesars project is slated for completion later in 2024.

 

Decline in January Taxes Reflects Industry Fluctuations

Virginia's casino tax revenue saw a substantial decline in January, mirroring the drop in AGR. With a tax rate of 18% applied to AGR, the three gaming establishments collectively paid $9,515,514.95 in taxes last month, marking an 18.85% decrease from December.

The distribution of these taxes varies, with allocations made to different entities. The breakdown of January's tax distribution includes:

• Host City / Regional Improvement Commission (6%/7% of AGR): $3,171,838.32
• Problem Gambling Treatment and Support Fund (0.8% of total tax): $76,124.12
• Family and Children's Trust Fund (0.2% of total tax): $19,031.03
• Remaining funds available in the Gaming Proceeds Fund: $6,248,521.48

Despite the slight dip in revenue and tax contributions, Virginia's casino industry continues to show promise as it navigates through its developmental stages. With ongoing construction projects and potential expansions on the horizon, stakeholders remain optimistic about the future growth and sustainability of the state's gaming sector.