The Indiana Family and Social Services Administration (FSSA) released its annual report on casino gaming revenue on Monday. The report shows that Indiana casinos generated $713.7 million in revenue during Fiscal Year 2017, a decrease of $4.4 million from the previous fiscal year.
However, much of the loss was due to Kentucky casinos gaining a foothold in southern Indiana. Indiana’s eleven casinos reported $709.3 million in gross gaming revenue, while Kentucky’s seven casinos reported $4.4 million in revenue from Indiana-based gamblers.
Indiana Gaming Commission Executive Director Sara Tait said that the commission is “disappointed with the overall trends” but anticipates that the industry will rebound in 2018. “We are encouraged by the continued development of new and innovative products at our properties and remain bullish on the future of legalized gaming,” she said.
Indiana gaming officials have been expecting a decline in revenue for several years, as neighboring states have begun to offer more gaming options. In recent years, Illinois and Michigan have both added new casinos, which has taken some business away from Indiana establishments.
Despite the decline, casino tax revenues still account for a significant portion of state income. In FY2017, casino taxes generated $236 million for state coffers, about 8% of total state revenue.
Kentucky raked in a total of $137M from gambling in fiscal year 2017, according to a recent report from the Kentucky Council on Problem Gambling. This is the first time that Kentucky’s total gambling revenue has eclipsed the $100M mark.
The majority of this revenue – $115.5M – was generated by casinos, while racetracks brought in the remaining $21.5M. This growth can be largely attributed to increased adoption of legalized casino gambling in the state.
Gambling revenues have been on the rise in Kentucky for several years now, with annual increases ranging from 3% to 12%. The trend is expected to continue, with the state’s gambling industry projected to bring in over $160M in revenue by 2020.
This growth is good news for Kentucky’s budget, as gambling revenues are used to fund a variety of important programs and services. In fact, over 60% of the money generated by gambling goes towards supporting education initiatives in the state.
In addition to providing much-needed funding for schools, gambling also helps create jobs and support local businesses. The industry employs nearly 9,000 people in Kentucky and generates over $200M in economic output each year.
So far, there hasn’t been much opposition to legalized gambling in Kentucky, as most residents seem to see it as a relatively harmless way to generate additional revenue. However, there is always potential for problems associated with pathological gambling (i.e., addiction).
The Council on Problem Gambling does a great job of monitoring these issues and working to prevent them from becoming a major problem. They offer prevention and education programs, as well as counseling and treatment services for those who need it.
Overall, legalized gambling has been a positive development for Kentucky. It has provided much-needed funding for schools and other important programs, while also creating jobs and supporting local businesses.
In Fiscal Year 2018, Indiana gamblers lost a record $4.5 million to casinos in Kentucky, according to a report from the Indiana Gaming Commission. That’s up from the $3.9 million lost to Kentucky casinos in FY 2017.
The report also shows that Indiana gamblers lost a total of $139.7 million to all out-of-state casinos in FY 2018, up from the $127.8 million lost in FY 2017.
The largest share of that money—$101.7 million—was wagered on slot machines, while table games accounted for $27.2 million and video poker machines accounted for $10.8 million.
Nationwide, casino gambling losses totaled more than $40 billion in 2018, according to the American Gaming Association. That’s up from the nearly $37 billion lost in 2017.
The increase is being driven largely by increased popularity of electronic gaming devices such as slot and video poker machines, which now account for more than two-thirds of total gambling losses nationwide.
Indiana has been slow to embrace electronic gaming devices, with just 27 percent of its gambling losses coming from them in FY 2018. By comparison, they account for more than two-thirds of gambling losses in Nevada and New Jersey.
Casino revenue from Indiana to Kentucky down nearly 5% from 2017 to 2018.
Indiana casinos took in $182 million from gamblers in 2018, a 4.8 percent drop from the $191 million taken in by Kentucky casinos in 2017, according to figures released last week by the Casino City Times. In 2006, when Indiana’s first casino opened, that state’s take was more than four times as much as Kentucky’s current total.
Indiana’s 11 casinos are spread evenly around the state.Horseshoe Southern Indiana led all casinos with nearly $64 million in revenue in 2018, a slight uptick from the $63 million it took in the year before. The newly opened Gary Charles Gaming Resort was second, with just over $40 million.
The bulk of Kentucky’s gaming revenue comes from four casinos: The Belterra Resort and Casino in Florence ($67 million), the Hollywood Casino Lawrenceburg ($59 million), the Horseshoe Cincinnati ($52 million) and the Florence Grand Casino ($10 million). Together they account for 93 percent of the state’s gaming revenue.
Kentucky officials have been waiting since 2013 for approval of expanded gambling that would include resort casinos with table games and slot machines. That decision by Gov. Matt Bevin is pending with the state Supreme Court.
Indiana gaming establishments lost more than $4.5 million to Kentucky gaming establishments in fiscal year 2017
A recent study by the Indiana Gaming Commission found that in fiscal year 2017, Indiana gaming establishments lost more than $4.5 million to Kentucky gaming establishments. In total, Kentucky casinos took in over $1.1 billion in revenue last year, with nearly $930 million of that coming from out-of-state visitors.
This is not the first time that Indiana has seen money flow out of the state to its neighbor to the south. In fact, a similar study conducted in 2013 found that Indiana gambling establishments lost over $6 million to Kentucky casinos.
While it is clear that Kentucky casinos are benefitting from Indiana’s gambling losses, it is not entirely clear why this is the case. Some have speculated that it may be due to the lower taxes and licensing fees charged by Kentucky casinos, or because of the lack of a residency requirement for players in that state. Whatever the reason, it is clear that Indiana gaming establishments are losing out, and that lawmakers in that state should take notice.