Commercial Casino Revenue Up Four Percent Nationwide in September, Sports Betting Provides Boost
Posted on: November 13, 2018, 06:49h.
Last updated on: November 13, 2018, 06:49h.
Commercial casino revenue climbed four percent in September nationwide, and the analyst who compiled the report gives credit to the introduction of sports betting in four new states.
Reno-based gaming analyst Ken Adams says in his September report, which he amasses for CDC Gaming Reports, that gaming revenue in the monitored 21 states was more than $3.83 billion. That’s a four percent premium on the same year 2017.
Absent a major economic reversal, the industry is in a very strong position right now,” Adams stated.
In September, full-fledged sports betting was operational in Nevada, but also Delaware, New Jersey, West Virginia, and Mississippi. Adams says total handle for the five states was $817.17 million, and oddsmakers kept 11.6 percent for a win of $95.5 million.
“Don’t expect that win percent to become the norm, but it was a nice touch for the ongoing entrance of sports betting onto the national stage,” Adams explained.
The Adams Revenue Report focuses on commercial casinos. A recent study found that casinos owned by Native American groups account for 43.5 percent of the US gaming industry.
Along with sports betting, Adams says the introduction of new properties in various states provided an influx of new gaming revenue.
September 2018 saw new casinos in Massachusetts (MGM Springfield), Atlantic City (Hard Rock and Ocean Resort), and New York (Resorts World Catskills). The added gaming floors spurred gross gambling revenue growth in those states.
However, Adams is concerned that in Atlantic City, the two new casinos will poach from the seven earlier gaming floors.
Massachusetts will add a second integrated casino resort in 2019 with the $2.6 billion Encore Boston Harbor. And five so-called satellite gaming venues are being developed in Pennsylvania.
Arkansas voters approved four casinos on Election Day through a ballot question referendum. And a hard push in Virginia to legalize gambling is expected to commence when the state’s legislature convenes in January.
Betting on Sports Betting
The Supreme Court ruled in May that the longstanding federal ban on sports gambling violated the US Constitution. The four aforementioned states were quick to join Nevada, and New Mexico sportsbooks took their first bets in October.
Many more are expected to follow.
Fifteen states have introduced legislation to legalize and regulate sports betting. Four others, Pennsylvania, Rhode Island, New York, and Arkansas, have already passed bills but the first wagers are still waiting to take place.
The American Gaming Association (AGA) believes the expansion of sports betting will be a cash cow for the gaming industry. “Legalizing sports betting at brick and mortar facilities across all 50 states could add up to $14 billion to the US economy, generate up to $27 billion in total economic output, and provide as much as $5 billion in additional annual tax revenue,” the AGA concluded in a study.
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