Indiana Gaming Tax Revenue a Nine-Year High in FY22, But Last Quarter Concerning
Posted on: July 17, 2022, 11:09h.
Last updated on: July 19, 2022, 12:00h.
The latest monthly revenue numbers from the Indiana Gaming Commission (IGC) show some good and bad news.
We’ll start with the good. The figures for June, released this past week, ended the 2021-22 fiscal year. Not only was the $689 million in tax revenue more than $107 million – or 18.2% – better than the 2020-21 fiscal year, it also was the best return for the state in nine years, when it collected $752.4 million, according to IGC data.
It’s the first time Indiana collected more than $600 million in total gaming taxes since it received $602.4 million in 2017-18.
In June, Indiana collected $60.1 million in wagering taxes from the 12 licensed commercial casinos. That pushed the total wagering tax for the year to $606.1 million.
The $60.1 million tax was based on taxable adjusted gross receipts of $188.7 million for the casinos in June.
Hard Rock Northern Indiana, the land-based casino in Gary that opened in May 2021, led all the Indiana casinos with $31.4 million in AGR for the month. Horseshoe Hammond, another Northwest Indiana venue, was second with an AGR of $28.3 million. Horseshoe Indianapolis, a racino in Shelbyville, reported $23 million, and Caesars Southern Indiana finished the month with $19.6 million.
Indiana Sports Betting Handle, Tax Revenue Rise
In addition to the wagering tax, which is a progressive tax based on revenues generated by each casino, Indiana also gets a share of the supplemental tax, a $3 tax for each admission that’s split evenly between the state, the casino’s host city, and its host county. The state also levies a 9.5% tax on sports betting revenues.
Speaking of sports, Indiana reported a total handle of $256.3 million from its licensed sportsbooks in June. That’s $10 million more than what was bet in June 2021, according to IGC data.
Compared to May, the handle fell by nearly $52 million. That’s expected, though, since the basketball season ended in early June, and the only regular action now is baseball and golf.
While betting increased slightly for the month compared to last year, the sportsbooks found less money in their pockets. June’s taxable AGR was $15.8 million, or $9.6 million less than June 2021. It’s also nearly $14.9 million less than the sportsbooks won in May.
Online wagering accounted for 93.1% of the June handle, with FanDuel and DraftKings being easily the top two books in the state. FanDuel’s online app reported a handle of $79.4 million and revenues of $5.5 million, while DraftKings took $70.8 million in bets and won $3.3 million.
The state’s sportsbooks took more than $4.43 billion in wagers for the 21-22 fiscal year. That’s up from the $2.9 billion wagered in 2020-21. While football reigns supreme in most sports betting states, Hoosiers love their hardwood action. Basketball accounted for $1.29 billion of the wagers, according to the IGC.
Parlay wagers made up another $1.16 billion, while Hoosier gamblers (and those trekking in from neighboring states) placed $776 million in football bets.
Indiana collected $31.2 million in sports wagering taxes for the 21-22 fiscal year. That’s an increase of 37.4% from the $22.7 million the state received last year.
Casino Revenues Fall as Inflation Rises
Now, on to the bad news for Indiana. Casino revenues fell for the third consecutive month in June.
The IGC report shows that casinos won $197.2 million last month before free play and other deductions. That represents a nearly 7% decline from the $211.9 million the casinos won in May.
June’s figure is also down more than 16% from the $235.2 million casinos reported in March.
The three consecutive declines at area casinos come as inflation reaches levels the US has not seen in more than 40 years. The US Bureau of Labor Statistics reported a 9.1% annual inflation rate for June. That’s the highest the country has seen since November 1981.
Inflation has had a tremendous impact on prices for food and gas and other products consumers need regularly. According to Mastercard SpendingPulse, spending on fuel and convenience goods went up 55.7% in June, compared to pre-pandemic June 2019 figures. Grocery spending over the same time frame is up 24.8%.
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July 29, 2022 — 3 Comments—