State gaming revenue rebounds in latest fiscal year

DES MOINES - After a one-year dip, Iowa's statewide gaming revenue increased 2 percent in the recently concluded fiscal year, thanks largely to a new casino in Sioux City, state reports show.

The Iowa Racing and Gaming Commission this week published its fiscal year report, and statewide gaming revenues rebounded after a one-year decline, making up half the loss from the previous year.

'It's encouraging to see a rebound in the numbers from a year previous,” said Wes Ehrecke, president of the Iowa Gaming Association.

The state took in $1.42 billion in gaming revenue in fiscal 2015, an increase of more than $27 million.

That's after statewide revenues fell by 4 percent, or roughly $55 million, from fiscal 2013 to fiscal 2014, after peaking at $1.46 billion in fiscal 2012.

Fiscal 2015 admissions also increased by nearly 730,000 - or 3.5 percent - from the previous year.

Iowa Racing and Gaming Commission administrator Brian Ohorilko said much of the revenue and attendance increases can be attributed to the new Hard Rock Hotel & Casino in Sioux City, which opened in August 2014. Hard Rock's 2 million visitors in the fiscal year were second only to the 3 million who visited Prairie Meadows Track & Casino in Altoona.

Ohorilko said the Sioux City market is up roughly $21 million from the previous year, before the Argosy riverboat was ordered closed.

'If you look at the individual markets, most are within 5 percent - up or down - of where they were last year, which demonstrates some stabilization of the market,” Ohorilko said in an email. 'Most of the gain can be attributed to the new Hard Rock facility that came to the Sioux City market after the boat had closed.”

Ohorilko also pointed to a 9 percent revenue increase in the Burlington market, which he said may be a result of increased activity from the nearby construction of a new fertilizer plant.

Ehrecke said a mild winter may have helped, and he credited the increased attendance and revenue to upgrades at Sioux City and Davenport casinos, as well as casinos' efforts to offer multiple entertainment options beyond gaming.

'We have premier entertainment destinations,” Ehrecke said. 'It's not just a casino gaming floor experience. It's the dining, concerts, meeting rooms, conventions, weddings, hotels. … I'm encouraged that customers enjoy coming to the casino not only for gaming but for other entertainment experiences.”