With the advent of legalized sports betting in neighboring states and new out-of-state casinos opening, Indiana’s casino industry is currently battling against significant odds. After a rewarding 2022, with $2.5 billion in revenue, the state’s 12 casinos are now facing a downward trend in earnings, marking the third consecutive monthly decline. This starkly contrasted with the online industry, which is currently thriving by luring in new players through enticing promotional bonus offers.
In May 2023, Indiana’s casinos earned an adjusted gross revenue of $192 million – a 7.6% decrease compared to the same period in the previous year. This reflects a cooling off from the success of the previous fiscal year, when these casinos generated more than $691 million in taxes – the highest amount seen in nearly a decade.
The downturn in the casino revenue can be attributed in part to the increasing competition from neighboring states Ohio and Kentucky. Both states have recently embraced the sports betting industry – a sector where Indiana had previously enjoyed the benefits of early legalization in 2019. With Ohio already rolling out online sportsbooks and casinos this year, and Kentucky looking to join the fray in late 2023, Indiana’s pioneering efforts in this realm are under threat.
Analyst Projections
The impact of this competition is already evident, with a decrease of more than 8% in sports betting revenue in May from the same month in 2022. Analysts project that sports wagering could experience a drop of $400 million this year, a significant dip from last year’s $4.5 billion total wagering volume.
Despite the dwindling revenues, some of Indiana’s casinos are optimistic and investing heavily in expansion projects. Caesars, for example, has committed almost $74 million to expanding its establishments in Anderson and Shelbyville. In Anderson, the nearly completed expansion of Harrah’s Hoosier Park will add 30,000 square feet and around 100 jobs. Meanwhile, the Horseshoe Indianapolis in Shelbyville finished its $34-million expansion last year, adding another 25,000 square feet and approximately 100 new jobs.
Furthermore, a new $245 million casino and hotel is in the works in Terre Haute, expected to open in March 2024. This facility promises to add 500 new jobs and offer a resort-style 120-room hotel, a rooftop bar, an event space, and a gaming floor with 1,000 slots and 34 table games.
However, the Golden Nugget casino’s recent opening in Danville, Illinois, just across the state line from Terre Haute, adds another competitor to the mix. Plus, the planned Bally’s Chicago casino, once complete, will be the largest in Illinois, posing a serious challenge to Indiana’s three northwest casinos.
The dwindling betting revenue this year is set to impact Indiana’s fiscal health, as the state raked in over $1 billion in gambling-related taxes last year for the first time in a decade. These taxes constitute a significant portion of the state’s general fund, which supports various services and initiatives. As the state’s casino industry navigates these rough waters, the implications for state revenues, jobs, and related sectors will be closely
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