Ohio’s casino and racino revenue fell by 10.5% year-over-year in January, as the state’s gambling industry continued to face challenges from the COVID-19 pandemic and its related restrictions. The state’s 11 casinos and racinos reported a combined revenue of $146.3 million last month, down from $163.4 million in January 2020, according to the Ohio Casino Control Commission and the Ohio Lottery Commission.
COVID-19 Impacts Ohio’s Gambling Sector
The decline in revenue was largely attributed to the impact of the COVID-19 outbreak, which has forced the state to impose strict health and safety measures to curb the spread of the virus. These include limiting the capacity of casinos and racinos to 25%, requiring face masks and social distancing, and enforcing a statewide curfew from 10 p.m. to 5 a.m.
The pandemic has also affected the demand for gambling, as many customers have opted to stay home or avoid crowded places. According to a recent survey by the American Gaming Association, 31% of past-year casino visitors said they are less likely to visit a casino now than before the pandemic, while 29% said they are more likely to gamble online or on mobile devices.
Casino Revenue Outperforms Racino Revenue
Despite the overall drop in revenue, Ohio’s four casinos performed better than the seven racinos, which offer video lottery terminals but no table games. The casinos reported a revenue of $59.9 million in January, down by 6.2% year-over-year, while the racinos reported a revenue of $86.4 million, down by 13.3% year-over-year.
The casinos also saw an increase in their market share, from 35.8% in January 2020 to 40.9% in January 2021. This suggests that some customers may prefer the more diverse gaming options and amenities offered by the casinos, such as live poker, blackjack, roulette, and restaurants.
Ohio Lags Behind Other States in Gambling Revenue
Ohio’s gambling revenue in January was lower than some of its neighboring states, such as Pennsylvania, Indiana, and Michigan, which have more established and diversified gambling markets. Pennsylvania reported a revenue of $311.1 million in January, up by 2.7% year-over-year, while Indiana reported a revenue of $170.8 million, up by 0.6% year-over-year. Michigan, which launched online sports betting and casino gaming last month, reported a revenue of $150.8 million, up by 17.8% year-over-year.
Ohio is also one of the few states that does not offer online gambling, which has seen a surge in popularity and revenue amid the pandemic. According to the American Gaming Association, online gambling revenue in the U.S. reached a record high of $1.55 billion in 2020, up by 201% year-over-year. Ohio lawmakers have introduced several bills to legalize online gambling, but none of them have been passed yet.
Ohio’s Gambling Industry Hopes for Recovery
Despite the challenges and uncertainties, Ohio’s gambling industry remains optimistic about its future prospects, as the state gradually eases its COVID-19 restrictions and ramps up its vaccination efforts. The state’s curfew was lifted on February 11, after hospitalizations dropped below 2,500 for seven consecutive days. The state also plans to vaccinate 1.8 million people by the end of March, including those aged 65 and older, school staff, and people with certain medical conditions.
The gambling industry hopes that these measures will help reduce the health risks and boost the consumer confidence, leading to more visitors and revenue in the coming months. The industry also expects to benefit from the upcoming launch of sports betting, which was approved by voters in November 2020 and is expected to go live by the end of 2021.
