Mississippi’s bricks-and-mortar casinos going through unprecedented on-line gaming challenges

• Columnist Sid Salter says given nationwide developments, the Mississippi Legislature faces one more showdown on on-line sports activities betting.

For 31 years, the western-themed Sam’s Town Hotel and Gambling Hall has loomed massive on the Tunica, Mississippi, on line casino market’s horizon. This month, proprietor Boyd Gaming introduced the closing of the advanced resulting from decreased demand over the past twenty years.

Boyd Gaming’s preliminary involvement in Mississippi gaming got here in 1994 with the opening of Sam’s Town in Tunica and a 1994 administration contract with the Mississippi Band of Choctaw Indians for the Silver Star Casino – a contract that expired in 2000. In 2011, Boyd acquired the IP Casino Resort in Biloxi.

The shuttering of Sam’s Town will go away 5 casinos working within the Tunica market. Resorts Casino closed in Tunica in 2019, citing declining demand and elevated competitors from the growth of on line casino gaming in Arkansas.

Why is the Tunica gaming market declining? First, there’s growing competitors from neighboring states, together with the casinos in West Memphis, Arkansas and the legalization of on-line sports activities betting in Tennessee.

Second, the final rise of on-line gaming nationally is a big risk to remoted, rural gaming markets like Tunica’s, the place altering legal guidelines throughout state traces have weakened the once-lucrative enchantment of their playing homes. Third, some critics say native governments didn’t make sensible choices about tourism diversification.

But the rise of web gaming or “igaming” isn’t just a risk to the Tunica market, however to all on line casino gaming in Mississippi. According to the American Gaming Association, Mississippi’s 26 industrial casinos in 2024 generated complete gaming income of $2.43 billion, down 2.0 % in contrast with the earlier 12 months.

Total statewide income from digital gaming gadgets, as reported by the Mississippi Gaming Commission, was $2.02 billion, down 1.5 % relative to 2023, whereas income from desk video games was $333.7 million, down 2.6 %. Sports betting income suffered a sharper decline in income, dropping 18.8 % to $41.6 million, in accordance with AGA.

In Fiscal Year 2024, gaming was Mississippi’s sixth-largest supply of General Fund income at $156.6 million or 2.1% of the General Fund. That makes playing probably the most profitable of the so-called “sin taxes,” together with income collected on tobacco, liquor, or beer and wine. Another $96.5 million in gaming tax revenues was distributed to native governments that host casinos, and one other $36 million in tax revenues went to street and bridge upkeep.

Given nationwide developments, the Mississippi Legislature faces one more showdown on on-line sports activities betting.

Across America, the expansion of conventional gaming revenues has flattened, whereas actual development has occurred in web gaming (up 26%) and sports activities betting (up 22%).

According to the gaming business publication Legal Sports Report: “Mississippi sports betting is legal and live at casinos in the state. The state has many retail sportsbooks in operation, but just three sportsbook apps. Online sports betting in Mississippi is limited to users located on a licensed casino’s premises.”

You can obtain a sportsbook app from wherever within the state, however you have to be at a on line casino to put any wagers. Several Mississippi casinos have offers with sports activities books like FanDuel, BetMGM and Caesars. However, solely BetMGM, Caesars, and Pearl River Resort have launched sports activities betting apps within the state.

In Mississippi, sports activities betting on on line casino premises has been authorized since 2018. But off-site on-line sports activities betting from computer systems and sensible gadgets stays unlawful in Mississippi. Mississippi’s general gaming income has declined every fiscal 12 months since FY22 and is monitoring to say no once more this 12 months.

The political and enterprise disagreements which have put legislators at odds are well-known. Existing brick-and-mortar casinos concern “cannibalization.” In the context of the playing business, “cannibalization” refers back to the concern that an organization’s new on-line gaming (igaming) platform will take clients and income away from its present brick-and-mortar on line casino enterprise. 

Legislators concern the lack of jobs that land-based casinos produce in comparison with igaming. Proponents say igaming attracts a brand new, completely different, and youthful buyer and thereby “expands” gaming markets relatively than substituting one for an additional.

Yet whereas the legislative debate continues, there’s a fixed erosion of Mississippi’s once-third-largest within the nation gaming market place to states with completely different igaming legal guidelines and new casinos throughout state traces.