Louisiana Gaming Revenues Decline Due to Winter Weather Impact
Mobile Sports Betting and Riverboat Casinos Among Hardest Hit
Louisiana's gaming industry experienced a significant downturn in revenues during the month of January, largely attributed to adverse winter weather conditions. Donna Jackson, representing the Louisiana State Police's Gaming Enforcement Division, shared the concerning figures with the Louisiana Gaming Control Board during a recent meeting.
Mobile Sports Betting Takes a Hit
In January, mobile sports betting saw a decline in wagers, with a total of $317.8 million compared to December's $344.9 million. This resulted in a net proceed of $35.7 million and $5.3 million in taxes paid to the state. Furthermore, retail sportsbook wagers in January amounted to $28.5 million, generating $340,000 in state taxes. These figures were lower than the previous month's $32.1 million in wagers, which led to $407,672 in taxes.
Riverboat Casinos Suffer a 23% Slide
Adjusted gross revenues from the state's 14 riverboat casinos plummeted by approximately $36.5 million in January, representing a significant 23% decline from December. This decline accounted for $26 million in fees paid to the state. Comparing the fiscal years 2023-24 and 2022-23, the riverboat revenues for the former totaled $975 million, showing a decrease of $29 million or 3%.
Harrah's New Orleans Casino Faces Decreased Revenues
Harrah's New Orleans Casino experienced a decline in gross gaming revenue, amounting to $6 million less in January compared to December. January's gross gaming revenue reached $18.7 million, showing a drastic 24.4% decrease. Additionally, this figure fell short by $1.4 million compared to January 2023, resulting in minimum daily payments to Louisiana of $5.5 million. Year-to-date revenues through January 31 decreased by $13.7 million or 9%, totaling $140 million. The casino has contributed $38 million in fees so far during fiscal year 2023-24.
Racetrack Slots and Video Gaming Devices Also Impacted
Revenue from slots at Louisiana's racetracks declined by 18% in January, totaling approximately $23 million, down $5 million from December. In turn, this generated approximately $3.4 million in fees for the state. Moreover, the state's 11,955 video gaming devices saw a decrease in revenue, totaling $57 million, down $6.4 million or 10% from the previous month. These devices, located at 1,395 venues, contributed roughly $17.5 million in franchise fees.
Daily Fantasy Sports Takes a Hit
Gross revenues from Daily Fantasy Sports in January amounted to $1.5 million, producing $12,134 in taxes. This was a decline from December's $1.7 million in revenues, which generated $14,639 in taxes.
Despite the industry's struggles, it is crucial to consider the impact of the adverse weather conditions during this period. January had one less weekend compared to December and an additional Sunday in the previous year, contributing to a 17.7% decrease or $26 million decline in revenues. The gaming industry will need to navigate these challenges while seeking opportunities for recovery in the coming months.
Analyst comment
Negative news. Market analysis: The Louisiana gaming industry had a decline in revenues across various sectors in January due to winter weather. Revenues from mobile sports betting, retail sportsbooks, riverboat casinos, and other gaming devices were down compared to the previous month. The market is likely to continue experiencing a downward trend in the short term.
