Illinois VGTs Are Outperforming Casinos And Sports Betting
A recent CDC Gaming Report column put forth some impressive figures regarding video gaming terminals (VGT) and slot route operators in Illinois.
Headlining those numbers, an eye-opening $213.2 million in VGT revenue in June, up 57% from June 2019. The total was also more than double the combined $105.3 million Illinois casinos generated in June and the $36.2 million sports betting generated in May – the IGB hasn’t released June numbers yet.
More statistics of note included a 25% year-over-year increase in overall VGTs statewide, with 40,157 units in existence statewide. Those machines have a per machine average win rate of $177 per day.
The performance of VGTs, seen as convenience gambling, raises the question, how would online gambling (the ultimate in convenience gambling) fare in Illinois? And, by extension, the future of gambling. The state is hanging its hat on a $1 billion Chicago casino, but one has to wonder how long it can avoid online casinos?
J&J Ventures and Accel Entertainment Lead the Way
Two primary operators took the lion’s share of the $213.2 million VGT market in June, namely J&J Ventures ($63.9 million) and Accel Entertainment ($60.3 million).
The next closest two, Gold Rush Amusements ($19.8 million) and Prairie State Gaming ($11.4 million), both failed to break $20 million. Still, they were the only other two operators in the state to surpass $10 million in revenue for the month.
Despite being third in overall revenue, Gold Rush held the top spot in the state regarding per-unit-per-day numbers at $199. J&J Ventures followed at $186 per machine, with Prairie State in third at $175, near the state average of $177. Accel’s machines were the least profitable of the four, coming in with a daily profit of $157 per machine.
In Contrast, Illinois Casino Revenue Is Down
Illinois casinos brought in $105.3 million in gross income in June, down five percent from two years prior. In fact, only two casinos in the entire state saw Y/Y revenue growth for the month, Rivers Casino De Plaines and Argosy Casino Alton.
Rivers’ $41.3 million gross was good for a nine-percent uptick; meanwhile, Argosy grossed just $3 million, but such an amount represents a 315% increase from June 2019.
Hit hardest among casinos in the northern half of the state was Empress Joliet, operated by Penn National Gaming. Its $7 million gross was a 28.5% drop from 2019 and was the lowest gross among nearby casinos in the state.
Hollywood Casino Aurora, also operated by Penn, was down 7.5% with $8.5 million gross revenue, good for second in the area. Harrah’s Joliet and Grand Victoria Elgin, both Caesars’ properties, each had 5% decreases while grossing $12.5 million and $13.1 million, respectively.
Southern IL Casinos Hit Even Harder
The southern half of the state drew less business as a whole when compared to its counterparts to the north, understandably so given that the vast majority of the state’s population lives in the Chicagoland area.
Par-A-Dice’s (Boyd Gaming) $5.6 million topped the revenue list; however, it still lost 7.8% from two years ago. Such a decline was the least offensive among its direct competitors, with Harrah’s Metropolis seeing a 13.6% fall after grossing $5.4 million.
The duo of Jumer’s Casino Rock Island, recently acquired by Bally’s, and DraftKings at Casino Queen in East Saint Louis were hard hit. Jumer’s $3.8 million represented a 34.2% drop, and Casino Queen’s $5.3 million was good for a 37% plummet.
Sportsbooks in Illinois Fill Some of the Revenue Gap
In other news, Illinois has remained number two in the nation for total sports betting handle in May for a second consecutive month. A total of $507 million was wagered by Illinois sports bettors, marking five straight months in which the state’s handle was north of half a billion dollars. Illinois has climbed from number four in the nation to number two in total money wagered in that time.
Since January, sports betting in Illinois has generated between $35 and $47 million in revenue from total money wagered each month, good for roughly 7-8% of monthly handle. Should June’s numbers remain on pace, another $40 million-ish would represent just under 40% of casino gaming revenue for the state.
Hill Kerby comes from a background of poker, sports, and psychology, bringing all of them to the table with his writing. An overall fan and proponent of competition, Hill looks forward to the continued growth of all forms of betting as more markets open across the country.
