If someone is looking at the financials from Louisiana’s regulated gambling activity for the past fiscal year, a fitting song to play would be Foreigner’s “Feels Like the First Time,” as it truly is the first time in a meaningful way.
The gambling industry in the state made history in the fiscal year ending in June, with tax dollars and revenue from casinos, racetracks, and online sportsbooks reaching unprecedented levels.
In June of 2022-23, the Louisiana gambling industry saw varied revenue results. Sportsbooks experienced a significant increase in business, while racetracks stayed the same and casinos experienced a decline.
In June, Louisiana sportsbooks received a total of $160 million in bets from both in-person and online sources. After subtracting 7.8% of that amount for adjusted revenue, they made $12.4 million. They then paid $1.6 million in privilege taxes to the state.
In June 2022, Sportsbooks’ winnings increased by 14.5% compared to the previous year. Additionally, the amount of taxes the state collected from regulated sports betting during the same month rose by 12.5% compared to June 2021.
Despite the fact that slots at racetracks across Louisiana only managed to make the same amount of money in June 2022 as they did in the previous month, this is still the best news that the state’s gaming industry has received this month. The slots won $27.1 million from players and paid $4.1 million to the state.
Harrah’s New Orleans agreed to pay the state $5.3 million in June 2023, which matches its June 2022 payout. However, the state’s only casino on dry land experienced a 5.7% decrease in gross revenue last month, with players winning a total of $19.8 million.
In Louisiana, most of the gaming activity in the state during the month was accounted for by riverboat casinos, which reported $148.9 million in adjusted revenue and submitted $32 million in fees to Louisiana. Both of these figures were slightly lower than June 2022.
The total revenue from all the segments, excluding that from Harrah’s, amounted to $188.4 million in June 2023. This figure was only slightly lower than that of June 2022. All in all, the state was able to collect $43 million in fees and taxes from all sources, including Harrah’s, from this period. (Note: Harrah’s gross revenue, as reported by the Louisiana Gaming Control Board, was not adjusted).
In Louisiana, the revenue for May and the months prior was enough to create figures for the whole financial year. This enabled yearly growth.
2022-23 fiscal year ends with over $2 billion in adjusted revenue
June was not an especially good month for Louisiana’s gaming industry, but the end of the fiscal year was more encouraging. Although the adjusted revenue and tax totals only showed small increases, any increase is better than a decrease.
FY22-23 represents the first full fiscal year for legal sports betting in Louisiana. Physical sportsbooks began operations in November 2021, while online versions of sports betting did not launch until January 2022.
Comparing the past two fiscal years can reveal both positive and negative outcomes in different areas. For instance, Harrah’s saw a 12.3% growth in its gross revenue total, but it also paid 5.7% more tax dollars to Louisiana than the previous fiscal year.
Revenue from slots at racetracks was slightly lower than the previous year. Additionally, fees paid to the state from gambling and taxes on riverboat gaming also decreased slightly. Riverboat casinos experienced the largest decrease in revenue, with a 5.6% drop compared to the fiscal year 2021-2022.
Several riverboat casinos in the state are relocating to inland sites. These include the Queen Casino and the Live! Casino & Hotel Louisiana. The Queen Casino is planning to open in Baton Rouge next month.
Although the upcoming FY22-23 period may be seen as a fresh start, there is potential for even greater success in the future.