October was an optimistic month for US casino operators. As the pandemic subsided and gambling sites opened, revenue per gambling grew for six consecutive months. But with the second wave of coronavirus spreading across the country, the winning streak appears to have come to an end in November.
The most recent Commercial Gaming Revenue Tracker report from the American Gaming Association (AGA) notes that the country’s operators generated combined revenues of $ 3.38 billion in october. This represents a drop of only 7% compared to the same month in 2019, but an increase of 6.3% compared to september this year.
Slots brought in $ 2.1 billion (-10.6% year-on-year), while table games generated $ 543 million (-17%), due to pandemic casinos limited capacity restrictions. However, sports betting revenue saw an increase of 53.5% to $ 237.5 million. While online casino revenues tripled year-on-year to $ 156 million.
Total gaming revenue so far this year suffered a reduction of more than a third ($ 24.1 billion). Slot machines decreased -35.5% and tables -40.2%, which influenced the overall percentage drop. Not so sports bets which grew by a third to $ 915.4 million, followed by online casino games which soared to a whopping 206.2% to $ 1.23 billion.
As for the states, Colorado’s new gambling verticals allowed that state to grow 28.4% and Iowa was up 4.2% year-on-year in october. The other two states showing even stronger revenue growth from casino games were New Jersey (+ 15%) and Pennsylvania (+14.6%).
Ohio and South Dakota also exhibited financial strengths at 6.7% and 3.2%, but Oregon broke the mold by skyrocketing its revenue 1,162% to $ 2.8 million from sports betting.
In october, forecasts for sports betting in the country contemplate a record number of $ 3 billion. After the slowpokes in Illinois consolidate the total income for the month. All states that allow gambling set a national record, except for two that reached monthly personal records in october.
Everything indicates that the smile will be erased from the faces of US carriers when the revenue figures for november are released. This week, Maryland casinos reported that revenue was just $ 130.4 million, down from $ 142.7 million in october. All six casinos in the state posted negative sequential growth.
Something similar happened in Ohio. The state’s four casinos and seven racinos reported combined revenues of $ 133.4 million for november, compared to $ 169.1 million in october. Casinos in Ohio, like those in Maryland, are facing more restrictive pandemics and it is not known when the easing period will return.
Another state hit by the pandemic and restrictions is Nevada. This week, Las Vegas Sands announced that it will close the Palazzo hotel-casino tower until about december 23 to “better reflect occupancy patterns.” In july, El Palazzo stopped accepting room reservations during the week, due to the extensive closure decreed by the Nevada authorities.
However, the Palazzo’s bars and restaurants will remain open (only up to 25% of their capacity). Likewise, the games room with the exception that guests who decide to spend the night will be transferred to the Venetian hotel, also owned by Sands.
The other Las Vegas hotels that keep their rooms closed are Wynn Resorts ‘Encore Las Vegas, MGM Resorts’ Park MGM, and the Caesars Entertainment property located off the Rio Strip.