Virginia Casinos See Revenue Dip in April: A 7.7% Decline

Virginia Casinos See Revenue Dip in April: A 7.7% Decline

Virginia's casino industry faced a significant revenue dip in April 2024, with earnings falling 7.7% from $65.1 million in March to $60.1 million. This decline aligns with a typical seasonal trend observed in casino markets nationwide, where revenues generally slump from April through the summer months. The reduction in revenue during these periods is often attributed to various factors, including seasonal changes in consumer behavior and reduced tourism.

1. Revenue Decline in April 2024: Virginia's casino industry saw a 7.7% drop in revenue from $65.1 million in March to $60.1 million in April. This decline is consistent with the seasonal trend of lower casino revenues during the spring and summer months.
2. Impact of Online Casinos: Unlike states with legalized online gambling, Virginia lacks online casinos, which could mitigate revenue slumps. If legalized, online casinos in Virginia could potentially generate around $160 million in peak months, based on per-capita averages from states like Pennsylvania and Michigan.
3. Future Prospects: Virginia casinos are likely to face continued revenue challenges through the summer, with a potential rebound in September. Additionally, the possibility of a new casino opening in Petersburg in 2025 and the eventual legalization of online casinos could significantly boost the state's gaming industry.

 

In April, all three of Virginia's major casinos reported lower earnings compared to the previous month. Rivers Casino Portsmouth, the state's leading revenue generator, recorded $26.4 million in revenue, marking a 4.7% decrease from March's $27.7 million. Caesars Virginia experienced a 6.6% decline, bringing in $19.7 million compared to $21.1 million in March. Hard Rock Bristol faced the steepest drop, with a 14.7% decrease from $16.3 million to $13.9 million. Despite these declines, there was a positive note: the combined revenue for Hard Rock Bristol and Rivers Casino Portsmouth in April was up 52.8% compared to the same month in 2023, indicating some growth year-over-year despite the month-on-month dip.

One major factor contributing to the sustained revenue decline in Virginia's casinos is the absence of online gambling options. In contrast, states with legalized online casinos often see less pronounced dips in overall gaming revenue during the spring and summer months. For instance, Pennsylvania's online casinos generated $233.1 million in revenue in March, while Michigan's hit $215.2 million. The seven states with online casinos collectively earned over $700 million in March, averaging $119.2 million per state. This robust performance underscores the potential benefits online casinos could bring to states experiencing seasonal revenue declines in their physical casinos.

If Virginia were to legalize online casinos, it could potentially generate significant additional revenue. Based on the average per-capita revenue of $18.34 observed in states with online casinos, Virginia could see approximately $160 million in monthly revenue during peak periods. This estimate highlights the substantial financial opportunity that online casinos represent for Virginia, especially during months when traditional casino revenues are lower.

Looking ahead, Virginia casinos are likely to continue facing revenue challenges through the summer months. Historically, casino revenues tend to rebound in September with the start of the NFL season, suggesting a potential upswing in the fall. However, the summer months are expected to remain challenging. The best-case scenario for Virginia's casinos is a stabilization of revenue levels in July and August, followed by a robust recovery in September. More likely, however, is a continued decline in revenue during one or both of these months before a significant rebound occurs in the fall.

As for online casinos, there is currently no legislative momentum in Virginia to legalize them, and no related bills are on the November ballot. The state's legislative landscape has yet to embrace the potential of online gambling, despite the clear financial benefits observed in other states. However, with many eastern states already embracing online gambling, Virginia remains a prime candidate for future consideration. The successful implementation of online casinos in nearby states such as Pennsylvania, New Jersey, and Michigan provides a compelling case for Virginia to follow suit.

 

“Virginia casinos experienced a 7.7% drop in revenue from March to April, aligning with a national trend of seasonal declines, and highlighting the potential for online casinos to bolster earnings if legalized.”

 

Virginia's Future Potential

Meanwhile, the potential opening of a fifth casino in Petersburg could bring additional revenue opportunities. This new casino project is expected to go to a voter referendum in November 2025, giving residents the chance to decide on its future. If approved, the new casino could help bolster the state's gaming industry, providing a new source of revenue and potentially offsetting some of the seasonal declines experienced by existing casinos.

For continuous updates on the legal status and potential launch of online casinos in Virginia, stakeholders can refer to our Online Casino Bill Tracker. This resource provides timely information on legislative developments and the progress of any proposed bills related to online gambling in the state. As the conversation around online gambling continues to evolve, staying informed will be crucial for industry stakeholders and policymakers alike.