Iowa Casinos Collect Over $131 Million AGR in September
Residents of Iowa have plenty of access to our best sports betting sites. While they don't have real-money online casinos, they do have brick-and-mortar casinos, and they've reported on their September financials.
The Iowa Racing and Gaming Commission (IRGC) has released a report detailing Iowa’s casino revenues in September 2024. The report showed that IA’s 19 casinos combined to collect more than $131 million in adjusted gross revenue (AGR). The figure marked an 8.9% decrease from August 2024 and September 2023. Admissions across casinos also dropped from over 1.4 million in August 2024 to above 1.3 million in September.
The revenue drop was the first time since January 2024 that Iowa's AGR has slipped below $140 million. In September 2024, the IRGC collected more than $25.2 million in taxes from casinos.
Prairie Meadows Racetrack & Casino brought in the most AGR, collecting over $18.2 million, and also saw the most admissions at just under 180,000. The casino was also Iowa’s top performer in August 2024 and September 2023, bringing in $19.8 million and $20.6 million in those months, respectively.
Poor slot revenues are key to decrease
Table game revenue actually increased from $12.9 million in August 2024 to nearly $13.1 million in September, but it was with slot games where casinos saw the biggest drops. Slot revenues fell 9.9% from over $131 million to over $118 million.
Slots with $0.05 denominations remain the most popular in the state, with more than 10,000 machines in Iowa collecting more revenue than all other slot machine denominations combined. Despite maintaining a similar slot revenue percentage from August 2024 (10.84%) to September (10.74%), revenues still fell thanks to an 8.8% decrease in the coins spent by customers.
Drop in casino revenue comes amid Cedar Rapids resort debate
Casinos in Iowa have recently opposed plans from Peninsula Pacific Entertainment, a California company, to build a casino resort in Cedar Rapids. Five casinos within 75 miles of Cedar Rapids rely on customers from the state's second-most populated city.
Many of these gambling locations saw revenues and admissions drop in September 2024 and may fear further drops if a 20th Iowa casino is approved.
Local referendums on a casino in Cedar Rapids received support in 2013 and 2021, but the IRGC has dismissed all license applications so far. Lawmakers placed a two-year moratorium on casino applications in 2022, which expired in July 2024, leading Peninsula Pacific Entertainment to submit its $275 million plan.
Slump after strong casino performances in August?
Casino revenues across the US saw significant growth in August 2024, with Iowa one of several states to post increases in AGR. In August 2024, Iowa casino revenues grew 0.7% year-on-year. Meanwhile, there were more significant increases in states like Colorado, where the Colorado Department of Revenue reported 6% growth year-on-year, powered by strong performances in Black Hawk.
Massachusetts casinos posted a 5.5% year-on-year revenue increase in August, while Indiana saw the most impressive growth, with a 9.9% jump. Iowa is the first of these states to reveal its September 2024 figures, so it remains to be seen if the September slump will impact other states that benefited from growth in August.
