Kansas is home to a large and fairly successful casino industry. Unfortunately, the casinos in this state have been struggling to generate revenue for nearly an entire year. This week, reports surfaced claiming that casino revenue in Kansas dropped by almost 30% in 2020.
There are some caveats here, though. The revenue being discussed here only came from the four casinos directly owned by the state. It doesn’t include revenue figures from the different tribal casinos operating in Kansas.
Now is a good time to talk about exactly how much money the casinos here managed to bring in throughout 2020.
Let’s get into it!
Major Casino Companies Continue Struggling into 2021
It has been almost an entire year since the US casino industry was ordered to shut down. When that happened, many felt things would be back to normal within a few months. Health officials seemed torn on the situation and casino companies were content to sit back and wait for more updates.
As time went on, it became clear that the land-based casino industry was in for a tough time. Many states around the country waited until mid-summer to allow commercial casinos to reopen. Some then ordered another round of shutdowns just months later.
Places such as Las Vegas and Atlantic City saw their tourism and revenue numbers plummet. It was an extremely difficult situation for the casino companies with properties here. Even today, the country’s biggest gaming hubs are struggling in a big way.
Every casino company has seen large dips in revenue. That includes MGM Resorts, Wynn Resorts, and Las Vegas Sands. The latter has been forced to consider major Las Vegas property sales as a way to earn some extra money.
Even the states with small casino industries are hurting right now. These venues employ thousands of people and usually help to bring states a large amount of revenue each year. Unfortunately, there does not seem to be a clear date for the industry to turn around.
Kansas is home to some very popular gambling establishments. We’re now beginning to hear how much money these casinos lost throughout 2020.
State-Owned Casino Revenue in Kansas Fell by 28% in 2020
Kansas is currently home to 11 different land-based casinos. Seven of these are owned and operated by different Native American tribes. The other four are actually owned by the state and are hugely popular with many local residents.
New reports are shedding light on how much money the casinos in this state managed to bring in last year. According to these reports, the casinos across Kansas City, Mulvane, Dodge City, and Pittsburgh managed to bring in just $300 million in 2020. That represents a 28% drop when compared to 2019.
Stephen Durrell, executive director of the Kansas Lottery, spoke about the situation here to the media this week.
“It’s been a really difficult year for a lot of businesses and obviously, our casinos are part of that,” Durrell said. “Two months out of the 12, not being there revenue-wise . . . is obviously going to make a giant impact on what your bottom line is.”
The casinos here brought the state just $80.9 million in gambling revenue. The Hollywood Casino at the Kansas Speedway in Kansas City experienced the largest overall drop in revenue at 35%. This property managed to bring in just $99.4 million in 2020.
All of these casinos are still operating at a limited capacity. That is unlikely to change anytime soon. As a result, most analysts expect another major drop in gambling revenue in 2021, as well. Stay tuned for more updates over the next few months!
Kansas Continues to Look Close at Sports Betting Legislation
Since May of 2018, every single state across the country has been able to legalize and regulate sports betting. 26 states have now officially chosen to do so. Many more are in the process of drafting legislation to approve this new form of gambling.
That includes Kansas. This state is already home to a large and fairly successful gambling industry. Even with the drop in casino revenue in Kansas, this state has a more successful gaming market than many other nearby states.
This week, lawmakers in the state met to discuss sports betting legislation. The discussion centered around Senate Bill 84, which would officially legalize online sports betting in Kansas. Many officials in the state seem to be happy with the details of this new bill.
Heads of different sports betting companies are expressing their support for this new bill. These companies clearly recognize the huge sports betting market that exists in Kansas. State officials also seem happy with the idea of earning revenue from this industry.
If all goes according to plan, sports betting will become legal here before the end of 2021. That will be a huge move forward for the state’s gambling industry. It could also lead other nearby states to make the same decision.
Are you surprised to see how far casino revenue in Kansas dropped last year? When do you expect this trend to change? Let us know in the comments section below.