Louisiana Gaming Revenues Drop in January due to Winter Weather
Louisiana's gaming industry saw a decline in revenues across the board in January as the state grappled with severe winter weather. The Louisiana Gaming Control Board received a report from Donna Jackson, representing the Louisiana State Police's Gaming Enforcement Division, revealing the impact of the weather on the industry.
Mobile Sports Betting Takes a Hit
Mobile sports betting took a significant hit, with a total of $317.8 million in wagers for January. However, the net proceeds amounted to only $35.7 million, resulting in $5.3 million in taxes paid to the state. Furthermore, retail sportsbook wagers brought in $28.5 million last month, generating a mere $340,000 in state taxes.
Riverboat Casinos Experience Sharp Decline
The state's 14 riverboat casinos experienced a disappointing 23% decline in adjusted gross revenues, dropping from $158.5 million in December to $122 million in January. This decrease translates to a loss of approximately $36.5 million. Notably, the riverboat casinos contributed $26 million in fees to the state. In terms of year-to-year comparison, fiscal year 2023-24 saw a decline of 3%, with revenues totaling $975 million compared to $1.004 billion in the previous fiscal year. As of January 31, total fees collected from riverboats amounted to $209.6 million.
Impact of Weather on Local Markets
Donna Jackson highlighted that January had one fewer weekend compared to December. Ronnie Johns, Chairman of the Louisiana Gaming Control Board, emphasized that the Shreveport-Bossier market and the Lake Charles market were particularly affected by the ice storm, causing disruptions for several days. Notably, the I-210 bridge was closed for a couple of days, further impacting these markets.
Harrah's New Orleans Casino Sees a Significant Decrease in Revenues
Harrah's New Orleans Casino reported a decline of $6 million or 24.4% in gross gaming revenue from December, with only $18.7 million generated in January. This drop resulted in $5.5 million in minimum daily payments to Louisiana. Year-to-date revenues through January 31 amounted to $140 million, marking a year-over-year decrease of 9% or $13.7 million. Additionally, Harrah's contributed $38 million in fees during the fiscal year 2023-24.
Racetrack Slots and Video Gaming Device Revenues Decline
Revenues from slots at Louisiana's racetracks also took a hit, decreasing by 18% or approximately $5 million to a total of $23 million in January. These slot machines contributed about $3.4 million in fees to the state. Furthermore, the state's 11,955 video gaming devices generated $57 million in revenue, reflecting a decline of 10% or $6.4 million from December. These devices, located at 1,395 different locations, produced $17.5 million in franchise fees. Daily Fantasy Sports saw gross revenues of $1.5 million and generated $12,134 in taxes.
Future Expectations
Ronnie Johns expressed his anticipation regarding the upcoming figures for Louisiana's gambling industry. He is particularly interested in reviewing the impact of the biggest sports gambling day of the year in March. Early estimates suggest that nationwide, there could be wagers totaling as much as $23 billion on this one-day event.
Analyst comment
Negative news. Due to winter weather and the ice storm, Louisiana gaming revenues were down in January across the board. Adjusted gross revenues at riverboat casinos and Harrah’s New Orleans Casino decreased significantly. However, the chairman is optimistic about the potential increase in sports gambling revenue for March. The market is expected to recover in the upcoming months, but the impact of the weather may have a lingering effect.
