Call it doubling down.
Five new casinos in New York, Maryland and Kansas, combined with 2,000 additional video lottery terminals in Illinois and South Dakota, helped gaming revenue nationally increase 4.9 percent during June.
Reno-based gaming analyst and consultant Ken Adams, who produces the Adams Revenue Revue for CDC Gaming, said the new gambling opportunities – along with an additional Friday during the month – helped the gaming revenue reported by 21 states reach $3.3 billion.
Adams said the first week of June was possibly hurt by Memorial Day Weekend. However, Adams said, gaming revenue nationwide was a combined $20.4 billion in the first six months of 2017, a 3.58 percent increase.
“I have no idea if that trend will last for the entire year, but for the moment the combination of an expanded industry and a good economy are making for a banner 2017,” Adams wrote in the report.
Only one state – Mississippi – had a gaming revenue decline during June. Maryland – helped by the opening last December of the MGM National Harbor – recorded the largest monthly increase, 39.8 percent.
Adams said Maryland’s five other casinos had a combined 13.9 percent decline in gaming revenue without National Harbor. The MGM property added more than $50 million to the state’s gaming revenue totals in June.
Three other states – New York, Massachusetts and Kansas – reported double digit increases during the month.
The new VLTs in Kansas and Illinois sent both states to healthy percentage increases, more so in Illinois. Casinos in Illinois grew gaming revenue 2.1 percent, but the VLT market – which increased in number by 12.4 percent from a year ago – generated a 19 percent gaming revenue increase.
“In Illinois, it’s reasonable to conclude that VLTs have taken significant revenue from the casinos,” Adams said.
The nation’s major gaming markets had a mixed June.
Nevada reported its fourth consecutive monthly gaming revenue increase, but the figure was less than 1 percent. Atlantic City gaming revenue increased 1.8 percent, but the total was helped by a healthy increase in the state’s online gaming market. In
Pennsylvania, gaming revenue during June was flat. Adams blamed competition from New York and Ohio with hurting Pennsylvania’s casino market, but that was just part of the equation.
“The major culprit is the enabling legislation and the tax rate,” Adams said. “The casinos are getting old and tired, but a high tax rate has prevented reinvestment that is typical in a successful casino environment.”
Adams termed June “an acceptable month,” but the most important figure was nationwide total through June.
“After six months, 2017 has been a very positive year for the gaming industry,” Adams said.
CDC Gaming distributes the Adams Revenue Revue to premium subscribers.
