Ohio’s gambling industry saw a mixture of outcomes in July 2024, with casinos and racinos reporting declining revenues while sports betting continued to grow. According to the Ohio Casino Control Commission, total gambling revenue for the month reached $197 million, a 4.8% decrease compared to July 2023.
Casinos and Racinos in Ohio: A Slight Revenue Decline
Ohio’s gambling sector, comprising four major casinos and seven racinos, faced a modest but notable drop in revenue in July 2024. Combined, these establishments generated $197 million, down from $207 million in July 2023, representing a 4.8% year-on-year decrease.
Casino Revenue: A 4.6% Drop from 2023
The four casinos in Ohio—Hollywood Columbus, Jack Cleveland Casino, Hard Rock Casino Cincinnati, and Hollywood Toledo—collectively posted $82 million in revenue for July 2024. This marks a 4.6% decline from the $86 million they generated in July 2023. The reduction, although moderate, signals potential shifts in Ohio’s gambling market.
Year-to-Date Performance: $1.4 Billion in 2024 Revenue
Despite the July dip, Ohio’s casinos and racinos have had a strong performance throughout 2024. As of the end of July, they have collectively generated a significant $1.4 billion in gambling revenue. This figure suggests that while there may be month-to-month fluctuations, the overall market remains robust.
This year-to-date figure highlights the stability of Ohio’s gambling industry, even as individual months may show variances. With the introduction of new gaming options and ongoing market adaptations, Ohio’s casinos and racinos are poised for continued success despite short-term dips.
Sports Betting Growth: A Bright Spot in Ohio’s Market
While casinos and racinos saw slight revenue drops, Ohio’s sports betting market continues to rise. In July 2024, sports betting revenue hit $55.1 million, reflecting a 7.1% increase compared to July 2023. This figure also represents a 6.9% month-on-month increase from June 2024.
Online Sports Betting Leading the Charge
The majority of Ohio’s sports betting revenue continues to come from online platforms. In July 2024, online sports betting generated $53.5 million, further solidifying the importance of digital betting in the state. Online sports betting’s ease of access and growing popularity suggest that this segment will continue to drive growth in Ohio’s gambling industry.
Retail sports betting locations, meanwhile, contributed a more modest $1.5 million. Although retail sports betting is still in its early stages of development in Ohio, these physical locations add an important dimension to the gambling ecosystem, offering a more traditional betting experience that caters to a different customer base.
Sports Betting Handle: $477.5 Million in Wagers
The sports betting handle, or the total amount wagered on sports, hit an impressive $477.5 million in July 2024. This number highlights the growing appetite for sports betting in Ohio, especially as more residents turn to betting on major events and seasonal sports leagues. The combination of online and retail sports betting options has created a comprehensive platform for gamblers, further fueling the rise in overall handle and revenue.
Factors Contributing to the Revenue Decline
Several factors likely contributed to the overall revenue drop in Ohio’s casinos and racinos for July 2024, despite the strong sports betting performance.
Economic Factors and Consumer Spending
The broader U.S. economy has faced inflationary pressures and changing consumer behavior in 2024. With rising living costs, many consumers may be cutting back on discretionary spending, including gambling. The effects of inflation and stagnant wages could be playing a role in the decline seen at brick-and-mortar casinos and racinos.
Shift in Gambling Preferences
The increasing popularity of sports betting and online gambling might be pulling players away from traditional gambling venues. Online sports betting, in particular, offers a level of convenience that many players find appealing, especially younger demographics. This shift in gambling preferences could be causing foot traffic at physical casinos and racinos to dwindle.
Increased Regional Competition
Ohio’s neighboring states, including Michigan, Pennsylvania, and Indiana, have robust gambling industries, which may be drawing customers away from Ohio’s casinos and racinos. With a growing number of gambling options across state borders, competition is fierce, and Ohio’s gambling venues may need to adapt in order to retain and attract customers.
Outlook for Ohio’s Gambling Industry: Opportunities and Challenges
Despite the year-on-year revenue decline in July, Ohio’s gambling industry continues to show resilience and potential for growth. The state’s $1.4 billion in year-to-date gambling revenue demonstrates that Ohio remains a major player in the U.S. gambling market.
The sports betting sector, in particular, represents a major growth opportunity. With increasing revenue and a steadily rising handle, sports betting could become a dominant force in Ohio’s gambling industry. Expanding the availability of online platforms and improving retail sports betting locations could further enhance revenue and attract more bettors.
On the other hand, Ohio’s casinos and racinos may need to innovate and adapt to the changing market dynamics. Offering enhanced customer experiences, developing new gaming options, and marketing to a wider audience could help reverse the downward trend seen in July 2024. Additionally, increased promotions and partnerships with sports betting platforms could help brick-and-mortar venues stay competitive in an evolving gambling landscape.
Ohio’s gambling industry is at a crossroads, with traditional sectors like casinos and racinos facing revenue challenges while new areas like sports betting thrive. The 4.8% year-on-year revenue decline in July 2024 points to potential changes in consumer preferences, economic pressures, and heightened competition.
However, with $1.4 billion in year-to-date revenue and a growing sports betting market, Ohio remains a formidable player in the national gambling scene. The coming months will reveal whether casinos and racinos can rebound or if sports betting will continue to drive growth in Ohio’s gambling industry.
As the market evolves, Ohio’s gambling venues will need to adapt to the changing landscape, ensuring they remain competitive in both traditional gambling sectors and the rapidly expanding sports betting arena.