Iowa casinos have experienced a turbulent spring and summer fueled by fluctuating revenues over the past few months. After a dip in April, revenues saw a modest rise in May before falling again in June.
In June, casinos generated just under $141 million, down approximately $8 million from May. The decline was less severe on a year-over-year basis, with a decrease of about $1 million.
But that figure is down 5.4% from the $148.8 million collected last month. Iowa residents do not have access to real money online casinos.
Only Two Casinos Avoid Revenue Drop
Only two of the state’s 19 casinos managed to avoid a monthly revenue decline in June. Wild Rose Emmetsburg, Catfish Bend, and Diamond Jo Dubuque and Worth experienced double-digit percentage drops.
Prairie Meadows, the leading revenue generator in the state, faced a significant 9.1% decline, contributing to over 30% of the overall revenue decrease for Iowa casinos.
Online Casinos Still Not Offered in Iowa
Although Iowa has 19 land-based casinos, the market is crowded and won’t be growing anytime soon. Gov. Kim Reynolds signed a bill in May that blocked the release of new casino licenses for two years.
The state also currently has no online casinos, which isn’t unusual, as only seven states offer online casinos. However, a thorough analysis of the Iowa casino gaming market must consider the potential impact of online casinos.
Earlier this year, lawmakers attempted to pass online casino legislation in Iowa but were unsuccessful. Achieving this goal soon seems unlikely. It would require strong support from the state’s land-based casinos, which is still being sought.
Sports Betting Revenue Mixed in Iowa
The Iowa Racing and Gaming Commission (IRGC) reported a year-over-year increase in both handle and revenue for Iowa sports betting.
The total Iowa sports betting handle increased from $2.24 billion in fiscal year 2023 to $2.61 billion. By June, the sports wagering handle had risen from $186.3 million in fiscal year 2023 to $212.2 million through June 2024. Additionally, state tax revenue grew from $12.8 million to $14.3 million in 2024.
Revenue totaled $12.5 million, marking a 17.3% year-over-year increase, although it was 25.2% lower than May’s $16.7 million. Of this total, nearly $12 million came from online betting, while almost $563,000 was generated from retail locations.
FanDuel led online operators in terms of revenue, while DraftKings attracted more bets. DraftKings reported a handle of $53 million and a little more than $4 million in revenue. In comparison, FanDuel generated $4.3 million in revenue from almost $34 million in bets.
Iowa Has Olympic Betting Bans in Place
Despite the strong sports betting numbers, there are a few things Iowa bettors won’t be able to wager on during the Olympics.
The IRGC is enforcing a ban on certain bets during the 2024 Games. It includes betting on a country’s total medal count. Bettors in Iowa cannot place futures bets on which country will win the most gold medals or the total number of gold medals a country will win.
The IRGC also prohibits betting on Olympic athletes under the age of 18 in individual events. However, in team events, like tennis, markets will be offered even if a team includes an athlete under 18 years old. No prop wagers are allowed for any athletes under 18 at Iowa sportsbooks.
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