Posted on: June 21, 2023, 02:40 am.
Last updated: June 22, 2023, 09:54.
Iowa casino revenue fell for the second month in a row, down 6% in May. And while summer slumps are common in the Hawkeye State, there's a nod to increased competition from neighboring Nebraska.
The Iowa Racing and Gaming Commission reports total adjusted gross receipts (AGR) at $143.6 million, up from $153 million in April. Iowa began on-site sports betting more than two years after voters in Nebraska approved the move.
That was to be expected, as business in Nebraska is starting to deteriorate a little bit, so we're starting to see some impact there, but nothing unexpected.” Race and game manager Brian Ohorilko said.
Ohorilko says revenue declines aren't a major concern, but notes Harrah's Casino and Horseshoe Casino among Council Bluff's reported declines over the past two months. Just across the river in Omaha, Neb., is where one of the first sports betting licenses was issued, perhaps reducing interstate gambling traffic in the future.
Iowa's 19 state-licensed casinos brought in more than $1.7 billion last fiscal year. The current financial year ends at the end of June.
Sports betting, but mixed in Iowa
While table games and slots declined, sports betting increased. Iowa sports betting revenue rose more than 17% from April to May. Overall, sports betting increased by more than 31% compared to May 2022.
Revenue and taxes also increased, but overall management decreased month-on-month. So, the mixed picture. Sports books in the Hawkeye State brought in $147,715,126 in bets in May, down more than 14% from April. It's the second month in a row of handling declines.
Iowa's preferred choice for sports betting continues to be online, with $135 million coming from online gambling.
All but one of the state's 19 casinos have mobile sports betting, while in neighboring Nebraska, where sports betting is just getting started, mobile sports betting is banned.
Iowa ranked nationally
So far, Iowa's catch for May places the state fourth nationally, behind New York, Maryland and Indiana. (Not all markets have reported manipulations as of press time.)
Legal sports betting apps in Iowa in 2023 have so far averaged over $196 million per month. That's about $980,417,920 in the first five months of the year, down more than 9% from the same time period in 2022.
It appears that while the trend for punters continues to favor sports betting sites, there is an uptick for the retail market, which is seeing a slight increase in its share. Additionally, operators in brick-and-mortar locations retained 13% of their handle.
