In August, the Iowa Racing and Gaming Commission (IRGC) reported a 4.7% month-on-month decrease in revenue for the state’s casinos. However, the sports betting sector showcased resilience, registering a remarkable 27% increase in revenue during the same period. The adjusted gross revenue from Iowa’s 19 casinos totaled $143.1 million, shedding light on the evolving landscape of the state’s gambling industry.
Casino Revenue Trends:
The top-performing casinos in Iowa for table games and slots revenue included Prairie Meadows Racetrack and Casino, leading the way with $20.8 million in revenue, followed by Horseshoe Casino Council Bluffs with $15.8 million, Ameristar II with $14.6 million, Riverside Casino and Golf Resort at $11.2 million, and Diamond Jo (Worth) with $9.2 million. Notably, Diamond Jo (Worth) was the sole casino to witness an increase in revenue during the reported period.
Sports Betting Flourishes:
In stark contrast to the dip in casino revenue, the sports betting sector in Iowa experienced significant growth. Sports betting revenue reached $13.5 million, marking a 27.4% increase compared to July 2023 ($10.6 million). Although it was down by 6.2% year-on-year, this impressive month-on-month growth is noteworthy.
Online Dominance in Sports Betting:
Online sports betting continued to dominate the market, contributing $11.6 million in revenue, while retail betting accounted for $1.9 million. The total sports betting handle in August amounted to $141.2 million, marking a 15.2% increase from the previous year ($122.6 million) and a substantial 28.7% growth compared to July 2023. Online betting was the primary driver of this surge, accounting for $131.9 million, while retail betting reached $9.4 million.
Key Performers in Sports Betting:
Several key players made their mark in the Iowa sports betting landscape. Diamond Jo in Dubuque, in partnership with FanDuel sportsbook, reported $3.6 million in revenue and an impressive $27.6 million in handle. Wild Rose in Jefferson, in collaboration with DraftKings, registered $1.8 million in revenue from a $20.1 million handle. Diamond Jo in Worth, also partnered with DraftKings, generated $1.7 million in revenue from $18 million in wagers. Wild Rose Clinton posted $1.3 million in revenue from $23.8 million in bets, while Wild Rose Emmetsburg garnered $1.2 million from $13 million in bets. Both Wild Rose locations are in partnership with DraftKings.
Sports Betting Tax and Player Winnings:
Sports betting tax revenue for August amounted to $911,669, contributing to the state’s coffers. Players, meanwhile, saw significant winnings, totaling $127.8 million during the reported period.
While Iowa’s casinos faced a dip in revenue in August, the sports betting sector demonstrated its resilience and growth potential. The dominance of online sports betting and the remarkable month-on-month revenue surge emphasize the evolving dynamics of the state’s gambling industry. As the sector continues to evolve, it will be interesting to see how Iowa’s gaming landscape adapts to changing consumer preferences and market trends.