The Louisiana Gaming Control Board recently reported total gaming revenues of $180.8 million for July 2023, marking a 6% decrease compared to the same period last year. This downward trend is reflective of broader challenges facing some of the state’s key gaming districts, while others showed signs of resilience and growth. Among the state’s five primary gaming districts, three experienced revenue declines, highlighting shifting trends in the industry. However, significant gains in online sports betting painted a more optimistic picture for the future.
Lake Charles District: Largest Decline with 8% Drop
Lake Charles, one of Louisiana’s most robust gaming districts, experienced an 8% revenue decline, bringing in $69.0 million for the month. This decline, though significant, was expected given regional economic challenges and competition from nearby states. Despite the overall drop, several casinos in Lake Charles remain strong performers.
Key Casino Performances in Lake Charles
The Golden Nugget Lake Charles led the district, generating $25.2 million in revenue. While it continues to be the highest-grossing casino in Lake Charles, the figure represents a slight decline from the previous year, reflecting the broader regional downturn. L’Auberge Casino Resort, the second-largest contributor in the area, earned $23.2 million.
Delta Downs Racetrack Casino Hotel, known for both its gaming and racetrack, added $12.8 million to the district’s total, while Horseshoe Lake Charles reported $7.8 million in revenue, rounding out the district’s main contributors.
Despite these figures, the 8% decrease in overall revenue signals potential challenges for Lake Charles, which has traditionally been a powerhouse in Louisiana’s gaming industry. Factors such as rising inflation, increased competition from other states, and a more cautious consumer base likely contributed to the decline.
New Orleans District: A Strong 12% Revenue Growth
In stark contrast to Lake Charles, the New Orleans gaming district showed robust growth, with revenues increasing by 12% to reach $44.2 million. This significant growth positions New Orleans as one of the few bright spots in Louisiana’s gaming landscape for July 2023. The district’s performance can be attributed to both the strength of its casino offerings and a resurgence in tourism, driven by post-pandemic recovery and the return of major events in the city.
Casino Growth in New Orleans
Harrah’s New Orleans was the top performer in the district, generating $17.7 million in revenue. Located near the bustling French Quarter, Harrah’s continues to benefit from the district’s high tourist traffic and the city’s appeal as a cultural hub.
Other casinos in the New Orleans district also reported solid numbers. Treasure Chest Casino, located on Lake Pontchartrain, pulled in $12.5 million, while Boomtown Casino & Hotel contributed $8.5 million. These numbers highlight a consistent upward trajectory for New Orleans, which has shown resilience despite broader industry headwinds.
New Orleans’ growth can be largely attributed to increased tourism, with visitors flocking back to the city for events, festivals, and the general appeal of its vibrant cultural scene. This has directly benefitted the district’s casinos, leading to the impressive 12% increase in revenue.
Shreveport/Bossier City: Sharp Decline of 19%
The Shreveport/Bossier City district experienced the most significant decline in revenue, plunging by 19% to $41.6 million for July. This drop is alarming, as the district has historically been a stronghold for Louisiana’s gaming industry, largely due to its proximity to the Texas border and its draw for out-of-state visitors.
What’s Behind the Decline in Shreveport/Bossier City?
Several factors likely contributed to this sharp decline. Firstly, Margaritaville Resort Casino, the district’s top performer, generated $14.3 million—still a solid number, but a reflection of the broader downturn. Other key casinos like Horseshoe Bossier City and Bally’s Shreveport Casino & Hotel also saw reduced earnings, reporting $8.6 million and $8.3 million, respectively.
The decline in Shreveport/Bossier City’s revenue could be attributed to increased competition from neighboring states like Texas, where gambling laws are being reviewed and may soon offer more favorable alternatives. In addition, local economic pressures and a more cautious approach to leisure spending in this part of the state have likely played a role in the reduced revenues. This decrease raises concerns about the long-term viability of the district’s gaming industry if the current trends continue.
Baton Rouge District: Modest Growth of 3%
The Baton Rouge gaming district showed modest growth in July, reporting a 3% increase in revenue to reach $23.6 million. While not as dynamic as New Orleans, Baton Rouge’s steady performance reflects the stability of its gaming market, especially in the face of broader economic uncertainties.
Casino Contributions to Baton Rouge’s Growth
L’Auberge Casino Hotel led the district with $12.4 million in revenue, maintaining its position as the top performer in Baton Rouge. This success can be attributed to the casino’s diverse offerings, which appeal to both local residents and visitors from nearby areas.
The Queen of Baton Rouge, another riverboat casino, generated $7.0 million, contributing significantly to the district’s total. However, The Belle of Baton Rouge reported a concerning figure of just $0.5 million, indicating ongoing struggles for the historic riverboat casino.
The 3% increase in Baton Rouge’s revenue reflects a stable but slow-growing market. It remains less volatile than other districts, possibly due to less competition from neighboring states and a more localized customer base.
The Rise of Online Sports Betting: A 43% Year-Over-Year Growth
While traditional casino revenues faced challenges in some districts, online sports betting emerged as a standout success in Louisiana’s gaming landscape. Online sports betting revenue reached $23.5 million in July, representing a remarkable 43% increase year-over-year. Furthermore, the total sports betting handle—the amount wagered—jumped by 41% to $172.0 million.
The Increasing Appeal of Online Sports Betting
Louisiana’s legalization of online sports betting in 2021 has had a major impact on the state’s gaming industry. The impressive growth in this sector suggests that more residents and visitors are embracing digital platforms to place wagers on various sporting events. The convenience and accessibility of online betting are key drivers of this growth, especially as sports fans increasingly use their mobile devices to place bets.
This surge in online sports betting is likely to continue, fueled by major sporting events such as the NFL and college football seasons, which draw significant betting interest. The sustained growth of this sector provides an important boost to the overall gaming revenue, compensating for declines in some of the traditional casino markets.
Key Factors Behind Revenue Declines: Economic and Competitive Pressures
The 6% overall revenue decline for July can be attributed to a combination of economic and competitive pressures. On one hand, economic uncertainty—including rising inflation, higher interest rates, and general concerns about the financial landscape—has led to more conservative spending among consumers. This is particularly evident in the gaming industry, where discretionary spending on entertainment may be among the first to be reduced during times of financial strain.
In addition, competition from neighboring states like Texas and Arkansas is likely drawing visitors away from Louisiana’s casinos. These states are either expanding their gaming offerings or proposing new legislation that could make them more attractive destinations for gamblers. This is especially problematic for districts like Shreveport/Bossier City, which rely heavily on out-of-state visitors.
Finally, shifts in consumer behavior—particularly toward online gaming and sports betting—may be pulling revenue away from traditional brick-and-mortar casinos. The growing popularity of digital platforms for sports betting, in particular, poses a challenge for physical casinos that must adapt to the changing landscape.
Outlook for the Remainder of the Year: Mixed Prospects
Looking ahead, Louisiana’s gaming industry faces a mixed outlook for the rest of 2023. On one hand, the rise of online sports betting is expected to continue driving significant revenue growth. The state’s casinos and online platforms stand to benefit from the ongoing popularity of sports betting, especially as major sporting events come into full swing in the second half of the year.
However, the declining revenues in key districts like Lake Charles and Shreveport/Bossier City remain a concern. These regions will need to find ways to reverse their downturns, potentially through increased marketing efforts, new attractions, or competitive pricing strategies to lure back customers.
Louisiana’s gaming industry had a mixed performance in July, with a 6% overall revenue decline reflecting the challenges faced by several key districts. While Lake Charles and Shreveport/Bossier City saw steep declines, New Orleans and Baton Rouge reported growth, with online sports betting emerging as a major bright spot in the state’s gaming landscape.
As the gaming industry continues to evolve, Louisiana’s casinos must adapt to shifting consumer behaviors, economic pressures, and increasing competition. The rise of online sports betting offers a promising avenue for growth, but the state’s traditional casinos will need to innovate and remain competitive to secure their place in this changing market.
Looking forward, the remainder of 2023 will be crucial in determining whether Louisiana’s gaming industry can stabilize and thrive amidst these challenges.