Iowa’s 19 state-licensed casinos reported a slight increase in gross revenues as of the end of the fiscal year, June 30, according to the Iowa Racing and Gaming Commission. IRGC Administrator Brian Ohorilko said, “Just about a one percent increase in adjusted gross revenue. Also, admissions were up about that same rate, certainly better than the alternative.”
Ohorilko noted 12 casinos lost revenue compared to last year. However, after moving to new land-based facilities, but the Isle of Capri in Bettendorf and Rhythm City in Davenport reported revenue increases. The Bettendorf casino revenue increased from $69.7 million in revenue to $77.4, and the Davenport casino rose from $43.9 million to $61.9 million.
Ohorilko said gamblers who went to an Illinois casino that moved to land directly across the river are coming back. “You’re seeing some of that come back to Iowa when the two Iowa properties decided to move their operations to land. Consistent with what we’ve observed in other instances where facilities have increased their capital to go from the riverboat to land, there’s a number of different types of amenities now that these facilities can offer,” Ohorilko said.
He noted historically casinos do more business immediately after moving to land and improving facilities, but that surge in traffic from the new facility will start to slow down. “The next year I think it will be reasonable to assume that it might bounce back a little. We are seeing some of that at the Hard Rock facility in Sioux City, where they had two banner fiscal years prior to this one. In this one they did see a little bit of a correction with a more significant decrease than maybe some of the other facilities around the state,” he said. The Hard Rock Casino in Sioux City posted $77 million in gross revenue in the last fiscal year compared to $83.1 million in the previous fiscal year.
The Wild Rose Casino in Jefferson reported a revenue increase from $26.8 million last year to $28.2 million this year.
As the new fiscal year begins, Ohorilko said he does not expect any major changes, since no major construction plans are proposed. However, the IRGC will consider applications for a gambling license for Cedar Rapids. Ohorilko said market surveys for those license applications will be ready in October. “Those reports will look at more than just Linn County. They will look at the entire state,” he said.
