The MS Gulf Coast is now one of the best casino markets in the US. Here’s why and how
Casinos in many other states remained closed through 2020, while the casinos in South Mississippi reopened with safety precautions after two months and finished “the year of the coronavirus” as the fifth best casino market in the country.
That’s a jump of three spots from eighth in 2019, according to the American Gaming Association, which released the information in its latest State of the States report on the casino industry.
The momentum is growing as the mask requirement was dropped at all the casinos and people get vaccinated and become more comfortable going out.
The 12 Coast casinos — skilled at coming back from adversity — just posted the best month on record in April. The month also produced banner tax revenue of $31 million for the state and local governments and schools.
Casino revenue soared to $151.7 million in April, as reported this week by the Mississippi Gaming Commission.
That shattered the previous monthly high of $124.7 million in July 2007, when the Coast was flush with construction workers and volunteers rebuilding the area after Hurricane Katrina.
The only other time revenue topped $118 million in one month was $123.8 million during March Madness 2019. COVID-19 canceled March Madness in 2020.
2020 was stormy year on the Coast
Besides being shut down from mid-March to mid-May during the pandemic, the 12 Coast casinos had to close as tropical weather threatened South Mississippi several times in 2020.
The market lost an estimated 18% of total operating days in 2020 because of the pandemic and Hurricanes Sally and Zeta, according to the report.
Revenue at South Mississippi casino dropped to $1.08 billion in 2000, down from $1.31 billion in 2019.
Revenue was lower in all 25 states with physical commercial casinos, the report said, down 31% and to 2003 levels.
Coast casinos land in Top 5
For years, Mississippi was the third highest grossing casino market in the country after Nevada and New Jersey. That changed when casinos were approved in Pennsylvania and other areas with much higher populations.
The AGA reports the top markets for 2020 were:
- Las Vegas Strip — $3.65 billion
- Atlantic City, NJ — $1.48 billion
- Baltimore/Washington, D.C. — $1.31 billion
- Chicagoland, IL/IN — $1.12 billion
- Mississippi Gulf Coast — $1.04 billion
Mississippi casinos in the Tunica/Lula market were 17th in the national rankings with $445 million.
Boom times are back
Biloxi’s eight casinos combined for $111 million in casino revenue in April, “eclipsing a $105 million record set in July 2007,” Mayor Andrew “FoFo” Gilich reported this week.
“In fact, in the 29-year history of legalized gaming in Biloxi, only four times has gross gaming income exceeded $100 million for a single month,” he said. “It was the best April ever — by 30%.”
All Coast casinos had started 2020 strong. Before the coronavirus shutdown, South Mississippi casinos posted a combined $217 million take for the first two months, up $9 million from 2019.
This year started out even better, with $229 million, or $12 million more than last year and $21 million better than the start of 2019.
“The first quarter of 2021 clearly shows that consumer interest in gaming never waned, despite the challenges of 2020,” said AGA President and CEO Bill Miller. He said the momentum “is a direct result of our industry’s ability to provide safe environments for our employees and guests to return to.”
Sports betting fueling revenue
March Madness did happen this year and Coast casinos took in $33.3 million in wagers on basketball and other sports in March.
April sports wagers fell as expected, but remained strong at $20.9 million.
The AGA reports that Americans legally wagered $21.5 billion on sports during 2020, compared to $13 billion in 2019. Revenue from legal sports betting increased 69% to $1.5 billion.
This story was originally published May 21, 2021 at 12:06 PM.
