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Iowa experiences drop in casino revenues but fall wasn’t unexpected
Iowa is going through a bit of a slump with casino gambling as the latest revenue figures published by the Iowa Racing and Gaming Commission (IRGC) are anything to go by.
The latest report showed that in October 2023, Iowa accrued $26.7million in casino gaming taxes, a drop of $2.3m from what it had collected over the same month in 2022 when casino gaming tax revenues reached $29m.
Moreover, in the first four months of the Fiscal Year 2024 (July 1- October 31, 2023), Iowa received $105.2m in casino gaming taxes, representing a decline of $5.9m for the same period for Fiscal Year 2023.
Meanwhile, adjusted gaming revenue (AGR) showed the state’s casino garnered $136.31m from slots, table games, and poker in October 2023, which reflects a reduction of 5.50% in comparison to September’s $144m.
Overall, this reflected a 6.48% drop year-on-year, but it is thought that the downturn in revenue figures wasn’t wholly surprising.
Yes, it is believed that the state’s Revenue Estimating Conference had projected that gaming tax revenues for Iowa in Fiscal Year 2024 would come in lower.
Excluding the worst effects of the pandemic, Iowa’s casino revenue figures have fallen for just the second time in the past decade.
That said, Wes Ehrecke, who is the president and CEO of the Iowa Gaming Association isn’t unduly concerned by the IRGC’s latest findings.
He said: “Year in, year out over the last several years, we don’t change a lot.
“It doesn’t fluctuate a lot. We got a very stable industry here.”
Perhaps the increased competition from Iowa’s neighboring states, such as Nebraska and Illinois, could be deemed as a contributing factor to the declining casino revenues.
Indeed the launch of slot gaming in Nebraska towards the back end of 2022 has provided a stiff challenge to the Iowa gambling industry, and they will need to get back on track fast if they want to make inroads in 2024.
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