New AGA Report On Gaming Revenue Latest Evidence Indiana Needs Online Casinos

According to a recent report from the American Gaming Association, the US saw a decline of over 31% in commercial gaming revenue in 2020.

Throughout the year, the casino industry accumulated $30 billion in revenue, marking the lowest since 2003.

The significant decrease is primarily due to the COVID-19 pandemic, which severely impacted the business year. The closure of casinos for several months meant there was insufficient time to recover the lost revenue.

In 2020, gaming revenue decreased in almost every state, including Indiana.

Indiana casino revenue drops

In 2020, the Hoosier State generated over $1.7 billion in revenue from commercial casino gaming.

Nonetheless, there was a 7.1% decrease compared to the numbers in 2019.

The revenue of Indiana may have fallen, but all states, excluding New Jersey, Colorado, and South Dakota, experienced the same issue.

The industry in Indiana didn’t experience the severe impacts that other markets endured.

For instance, New Mexico experienced a massive 79% decline in its gaming revenue in 2020. New York followed with a 57% decrease, while Michigan’s gaming revenue dropped by 56%, placing it in third place.

The decrease in each state is directly related to the reopening of casinos there.

Coronavirus casino closures impacted bottom line

Clearly, if casinos are closed, they can’t generate any income.

The gaming industry suffered a setback as the pandemic necessitated a months-long shutdown of casinos nationwide.

Pandemic closures led to US casinos losing approximately 27% of their usual business days. However, these numbers significantly fluctuate depending on the state.

Casinos in Indiana were closed from mid-March until mid-June, cutting over 24% of the state’s typical casino operating days.

Business potential suffered the most in states that delayed reopening.

In the fall, many of New Mexico’s casinos briefly reopened before closing down again for a second time. The state lost more than 79% of its usual casino business days in 2020.

Indiana’s neighboring states also experienced significant losses. Last year, Illinois saw a 40% decline in its casino business days, while Michigan suffered an even greater loss at nearly 48%.

The pandemic might have caused a setback to the US gaming industry, but some states managed to weather the storm better than others. Specifically, online casinos served as a lifeline for retail locations that were put on hold.

Online casinos boost revenue numbers

When the pandemic first started spreading rapidly, Indiana’s gaming industry was found to be inactive and unprepared.

Once the casinos shut down from March to June, the state had virtually no gaming revenue coming in.

Online sports betting became the primary income source for Indiana gaming in the absence of casinos.

Nevertheless, due to the absence of sports caused by the pandemic, sports betting had to struggle through several months of poor performance. With a sports betting handle of $29 million, April marked the lowest month ever for Indiana.

During the slow months, states with legal online casinos were able to maintain a steady flow of money.

Only a few states have regulated markets, but they all prospered while retail casinos and sports betting were being devastated by the pandemic.

In 2020, online casinos in just four states generated more than $1.6 billion in revenue, representing a 199% surge from the figures recorded in 2019.

The statistics strongly advocate for the legalization in states such as Indiana, which are not benefiting from the potential revenue.

Fortunately, 2021 might see the arrival of online casinos in Indiana. This would enable Hoosiers to enjoy games such as blackjack and poker from the comfort and safety of their own homes.

Lawmakers have until late April to advance the process, but there’s still a significant amount of work to be done before legalization becomes a reality.

Should Indiana decide to incorporate online casinos, it could broaden the state’s gaming industry and provide a safeguard against the kind of severe impact that Indiana experienced from COVID in 2020.