Louisiana is home to one of the largest casino industries in the Southern United States. Unfortunately, the casinos here have been badly affected by Hurricane Ida, which recently made its way through the state. New reports claim this hurricane is likely to take a major toll on casino revenue in Louisiana.
It’s tough news for the owners of these properties. Fortunately, these low revenue figures may not last forever. Now is a great time to look at the state of Louisiana’s casino industry right now.
Let’s get into it!
Hurricane Ida is Likely to Cause Drop in Casino Revenue in Louisiana
Louisiana is home to a huge number of popular gambling venues. Some of these are riverboat casinos owned by commercial gaming companies. Others are Native American-run land-based casinos operated by different tribal groups in the state.
The casinos in the coastal regions are used to seeing disruptions due to weather. Not long ago, Hurricane Ida made its way through the state. The hurricane was large enough to force all of these coastal casinos to close their doors and some took damage.
New reports have surfaced claiming that casinos here can expect to see double-digit revenue losses caused by this hurricane. This is due to the large drop in visits to casinos in the state. Carlo Santarelli, a prominent gaming analyst, spoke to investors about this situation this week.
“If we assume the daily spend per measures visitor in August is akin to the 33.2% percent two-year increase in July, it would imply a 19% two-year gross gaming revenue decline in Louisiana in August, relative to the 9.7% two-year increase in July,” Santarelli said
Many of the casinos in Louisiana closed due to Hurricane Ida have since reopened. We’ll be sure to report on the upcoming gaming revenue reports here as soon as they are released.
Louisiana’s Sports Betting Launch is Delayed Once Again
Louisiana is known for having one of the most passionate sporting fan bases in the United States. Back in November of 2020, residents here finally voted in favor of legalizing and regulating sports betting in the state. Since that time, officials have been working to come up with an agreement to regulate this industry.
The original plan was to launch the state’s first sports betting operations before the start of the 2021/2022 NFL season today. Unfortunately, Hurricane Ida has delayed these plans. The Louisiana Gaming Control Board was unable to approve sports betting licenses before tonight’s game takes place.
It now appears the state’s first sportsbooks will launch at the end of September. Many residents are eager to see NFL betting options become available here. The American Gaming Association expects this NFL season to be the most-bet-on in history.
There is reason to believe that Louisiana will earn a huge amount of tax revenue from these regulated football betting platforms. Some expect this state to develop one of the largest sports betting markets in the country. As of now, an official launch date for the first sportsbooks has not been announced.
A lot is happening with Louisiana’s gambling industry. The casinos here are not the only ones experiencing revenue declines, though. Here’s a look at how other casino markets are faring.
States Report Casino Revenue Decline Over August
The US casino industry has performed better in 2021 than ever before in history. That is incredible when considering the state of this industry in 2020. Casino companies are performing very well, yet many reported revenue drops over the month of August.
The casinos in Maryland took a slight dive last month. Overall, casino revenue came out to $168.5 million. That is a drop from the $180 million earned in July, yet is still a major increase when compared to August of 2020.
Ohio is home to many popular tribal casinos. Last August, these properties managed to bring in $194.3 million in total gross gaming revenue. These are impressive figures but remain below the gaming revenue record set in April at $217 million.
Analysts now expect to see Nevada and New Jersey reporting slight revenue drops, too. Fortunately, things may bounce back over the fall months. Stay tuned for more information as the year goes on.
Are you surprised to hear that casino revenue in Louisiana is set to drop? Do you think it will bounce back in September? Let us know in the comments section below.