The COVID-19 pandemic “significantly impacted” both casino and video gaming revenue in Illinois for fiscal year 2020, which ended on June 30.
According to a new report issued by the state, a pandemic-related shutdown of video gaming and casino operations from March 16 and June 30 prevented any revenue from being generated by those sources. As such, tax revenue received fell more than 13% in FY 2020 to $1.2 billion, from $1.4 billion in the previous fiscal year.
Eric Noggle, a senior analyst for the state of Illinois, said although the suspension has been lifted, gaming has only returned on a limited basis and it “remains unclear” how long these limitations will last.
“Even with the resumption of wagering, it is expected that the ramifications of the pandemic on public confidence will persist for some time,” Noggle wrote in the report.
The report found the pandemic has had the largest impact on the casino industry. Adjusted gross receipts (AGR) from Illinois’ 10 operating casinos fell 30% from $1.347 billion in FY 2019 to $943m in FY 2020. The $195m in transfers to the Education Assistance Fund coming from Illinois’ casinos in FY 2020 are well below the near $700m that were transferred 10 years ago.
The Rivers Casino in Des Plaines, which historically has been Illinois’ largest revenue-producing casino, saw its AGR fall 27%, from $440 million last year to $321 million in FY 2020.
“Assuming that the lingering effects of the virus will soon subside, there could be noticeable improvements in revenue generated from gaming in the years to come as restrictions are lifted and new gaming locations across the state are opened,” Noggle said, adding questions remain on the extent gaming revenue will increase “given the plethora of gaming opportunities that already exist and the potential ramifications of the virus on the economy and discretionary spending.”
