From Atlantic City to Las Vegas, gamblers are eager to get out of the house and back to playing at the casinos. Now that coronavirus restrictions have mostly been lifted, the casino industry is having its best year ever.
Recent data issued by the American Gaming Association shows that the country’s casinos raked in $13.6 billion, the best second quarter in history.
Also, the report shows Q2 2021 nearly equaled all of the 2020 casino revenue; in 2020, casinos took a big hit due to widespread casino shutdowns and restrictions.
It’s easy to predict that 2021 could be the best year ever for U.S. casinos, which are on track to exceed the $43.6 billion made in 2019. Thus far, casinos have raked in nearly $25 billion during the first 6 months of 2021.
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Future Lockdowns and Restrictions Concern the Casino Industry
With the threat of new virus variants dominating the news, both players and the industry leaders are understandably concerned. Also, government officials could bring back lockdowns at any time, keeping people away from the casino resorts.
But, most gamblers at US casinos are glad the lockdowns are over, and they can once again enjoy a visit to their favorite casinos. Some feel that their vaccination status keeps them safe, and others are happy to comply with mask mandates.
The Gaming Association reports that in the states with commercial casinos that remain open, there are no longer capacity restrictions. However, the association did not provide information for tribal casinos.
The vast majority of states with commercial casinos saw an increase in gambling revenue in Q2 2021 compared to the same period of 2019. Data for 2020 were excluded from the comparison since the lockdowns artificially reduced revenue.
Online Gambling Kept Casinos Afloat During Lockdowns
Internet gambling and online sports betting helped to keep the casino industry afloat during government-enforced lockdowns. But now, visitors returning to the casinos are helping the industry to recover from its worst year in history.
The American Gaming Association says the easing of COVID restrictions, as well as gamblers eager to play in-person, is fueling the comeback.
Internet gambling revenue also performed well during Q2 2021, achieving a record of $901 million, up 15% over Q1 2021.
On the other hand, sports betting revenue dropped 8% from Q1 2021 to $889 million. However, that drop was primarily due to a lackluster sports season.
Illinois Posts Mixed Gambling Revenue
Commercial gaming revenue, after winnings are paid out, is also known as adjusted gross receipts. According to the American Gaming Association, the Illinois revenue report was mixed.
Commercial casinos in the state generated $447.5 million in revenue during Q2 2021, up more than 30% from Q2 2019.
However, some of that revenue was generated by sports betting, which was just legalized in Illinois in March 2020. According to the Illinois Gaming Board, the state’s nine retail sportsbooks generated around $127 million during Q2 2021.
Casino resorts in Illinois have yet to fully recover from the lockdowns and restrictions, which remain some of the strictest in the country. Combined slot and table game revenue for Q2 2021 was down by 7% compared to 2019, to $320 million.
Due to the strict capacity limits and other restrictions, Illinois was among the eight states to see a decline in commercial casino gaming revenue during Q2 2021.
New Jersey Has a Mixed Second Quarter
According to the New Jersey Division of Gaming Enforcement, total gaming revenues for 2021 are up by 33% compared to the same period in 2019. That figure includes online gambling.
However, looking at in-person gaming revenue alone, that is down by 12% compared to 2019. That is mostly due to live entertainment and concerts still being restricted.
Hopefully, now that restrictions on live entertainment and conventions have been lifted, revenue generated by the Atlantic City casino resorts will rebound.
Nevada Seeing Billion Dollar Months
The second quarter of 2021 was Nevada’s biggest-ever gaming revenue quarter, with a combined $3.46 billion. That easily beat the 2006 fourth-quarter record of $3.266 billion.
While the state’s casinos are now allowed to operate at 100% capacity, the governor’s mask mandates remain in effect. All casinos throughout the state require both employees and visitors, regardless of vaccination status, to wear masks. The management of both Red Rock Resorts in Las Vegas and the Atlantis Casino in Reno did not think the mask mandate would affect their revenue.
But unlike the rest of the state, revenue for the Las Vegas Strip is still slightly down. The Strip’s first big tradeshow and conference in June, as well as the return of live entertainment, undoubtedly helped.
Slot machine revenue along the Strip saw more than a 34% increase in revenue compared to 2019. However, high-rolling baccarat games, a favorite along the Strip, were down significantly compared to 2019.
Overall, casinos along the Strip raked in a combined $1.75 billion in gambling revenue for the second quarter. That figure fell just short of 2006’s all-time record of $1.79 billion in the fourth quarter.
