It’s the one-two punch casino operators in The Hawkeye State could have done without. According to state gaming data, the attendance and revenue figures at Iowa's 19 state-regulated casinos dropped again, marking the second consecutive year of decline.
Numbers from the state's nonpartisan Legislative Services Agency show that statewide casino revenue fell to $1.72 billion in fiscal 2024, down from $1.76 billion in the 2023 state budget year. Iowa's 19 state-regulated casinos, excluding sports betting, reached a record high of $1.77 billion in revenue in the 2022 state budget year.
Experts attribute the spike in casino attendance and spending during that peak year partly to people seeking entertainment options after early pandemic restrictions limited activities. They say these numbers are simply stabilizing after the casinos saw significant increases in the years following the peak of the COVID-19 pandemic.
“When we look at fiscal year 2022, that’s a great year. In fact, it’s an all-time, record-breaking year. So I would say it’s hard to hold all other years to that standard,” Racing and Gaming Administrator Tina Eick told The Gazette. “We are seeing maybe more of a rightsizing or reversion to the market that we were seeing before.”
Not All of the Casino News is Bad
The good news is that although statewide revenue has decreased over the past three years, it remains significantly higher than the previous peaks of approximately $1.46 billion in 2018 and 2019.
On top of that, the statewide revenue declines that came after the spike were minor relative to the overall revenue. The decrease from 2022 to 2023 was only 0.6 percent, and from 2023 to 2024, it was just under 2 percent.
Attendance at Iowa Casinos Drop
Even the decreasing attendance figures at Iowa’s 19 casinos aren’tcause for alarm. Attendance dropped early in the pandemic but bounced back to 17.5 million in fiscal 2022. However, it declined to 17.1 million in 2023 and 16.9 million in 2024.
With revenue and attendance both dropping over the past two years, industry experts agree that it's not a major concern. At least not yet. Particularly because revenue is still higher than it was before the pandemic.
The introduction of casino gaming in Nebraska might be significantly affecting Iowa's recent statewide figures.
Economic factors can influence casino attendance and gaming, according to Wes Ehrecke, president and CEO of the Iowa Gaming Association, which advocates for state-regulated casinos. Ehrecke noted that inflation-driven increases in the cost of living might have deterred some visitors from Iowa casinos over the past two years.
Iowa Horse Racing Industry Also Struggling
The Iowa Racing and Gaming Commission asked for a study last year to assess the future of the state's horse racing industry. Eick recently announced that the study made it clear that Iowa's current approach to quarter horse and thoroughbred racing is not viable. The report found that Iowa's horse racing does not attract much public interest and is not competitive.
Eick mentioned that horse racing, like other entertainment forms, faces significant competition. She noted that forty years ago, Iowans only had horse and greyhound racing for gambling, but now there are many more gambling options both in Iowa and nationwide.
The study offers several suggestions to improve Iowa's horse racing. One idea is to change the funding system for race purses. Instead of relying on casino gaming revenue, the proposal would link purses to the money generated from bets placed at the track and earnings from simulcasts. This change would ensure that all parties involved have a greater stake in the success of the races.
Despite the concerning numbers, there seems to be no immediate cause for panic. However, commissioners may receive promising insights when two market studies on the potential impact of a new casino in Cedar Rapids are presented at the Iowa Racing and Gaming Commission’s January meeting.
