Nebraska's Casino Launch Affects Iowa's Gambling Revenue
Date: 2023-12-05 Author: Dima Zakharov Categories: CASINO, EVENTS
Nebraska's foray into legal casino gaming, particularly the introduction of slot gaming in late 2022, has left its mark on Council Bluffs casinos in Iowa. According to reports from the Omaha World-Herald, major casinos in Council Bluffs are experiencing lower revenues, a trend also reflected in the American Gaming Association's Q3 revenue report.
The Nebraska Factor
The Nebraska Horsemen’s Benevolent and Protective Association, representing the interests of Nebraskan horse owners and trainers, supported the legalization of casino-style gaming in the state. Their claim that a significant portion of Council Bluffs’ casino spending comes from Nebraskans seems to be validated by the recent revenue downturn.
Iowa Anticipated the Impact
The Iowa Racing and Gaming Commission had foreseen the impact of Nebraska's gaming expansion on Council Bluffs. Despite a 3% year-on-year decline of $13.2 million in revenue reported by Ameristar, Harrah’s, and Horseshoe for FY 2022-23, the first four months of FY 2024 saw an additional decline of $10.9 million for the three Council Bluff casinos.
Future Challenges
The completion of the WarHorse Omaha property, set to launch its casino operations by autumn 2024, is anticipated to further challenge Council Bluffs' casinos. A study predicts potential losses of up to $183.9 million in adjusted gross receipts for Council Bluffs’ casinos once Nebraska fully activates its gambling operations.
Local Perspective
Nebraskan bettors have affirmed the convenience of the new casinos, expressing satisfaction that their gambling expenditures stay within the state. However, Iowa casinos have an opportunity to retain customers by focusing on costs, payouts, and overall gaming experiences.
Strategic Measures
Acknowledging the competitive landscape, the Iowa Racing and Gaming Commission concludes that local properties must invest in enhancing the overall gaming experience to maintain their edge in the market.
