It seems the Rhode Island casino industry is shifting from traditional casinos to the growing world of iGaming.
This change is evident in the November revenue numbers, which show a steady move away from traditional gaming. The figures from November indicate a 3.1% drop in total casino revenue, decreasing to $53.9 million from $55.6 million compared to the previous year.
This decline is part of a broader trend of slight declines in the traditional casino sector, while iGaming is becoming an important area of growth.
The news comes on the heels of a much stronger October for Rhode Island casinos, but definitely not the first time Little Rhody's casinos saw a decline.
A Breakdown of Revenue Segments: Tables vs. VLTs
In this shifting scenario, data from the Rhode Island Lottery indicate that both table games and video lottery terminals (VLTs) are declining.
Table game revenue for November settled at $11.6 million, marking a 4.1% decrease from the previous year's $12.1 million. Meanwhile, VLTs generated $42.8 million, down 2.8% from just under $44 million in the prior year. This performance aligns with a long-standing trend of modest declines in VLT activity as more players migrate to online platforms.
Despite these figures, VLTs continue to represent a dominant portion of the casino industry's revenue mix.
November's numbers emphasize a demand dip across both categories, indicating not just a simple transfer of focus between tables and machines but a broader adjustment in player preferences.
Trends in the Broader Casino Market
Over the past few years, Rhode Island's traditional casino revenue has been either flat or slightly declining on an annual basis.
In 2024, for instance, statewide traditional casino revenue showed a 3.1% decline, with table games off by 5.4% and electronic gaming devices dropping by 2.7%. Yet, it's worth noting that iGaming and sports betting have partly counterbalanced these declines by providing fresh streams of incremental growth.
November's figures reinforce the narrative that Rhode Island's land-based casino market is mature and witnessing gradual shifts.
While the 3.1% decline in November might appear alarming at first glance, it's more reflective of an ongoing transition than a sudden downturn. The growth trajectory is increasingly leaning toward iGaming and other digital channels.
The Rhode Island Lottery's Impact and Growth Areas
Even amidst the revenue shifts within the traditional casino sector, the Rhode Island Lottery remains a substantial contributor to the state’s economy.
For the fiscal year ending June 30, the Lottery paid $433.6 million into the state's General Fund. This includes profits from gaming operations prior to operating expenses, which amounted to $443.2 million.
Video lottery continues to account for a major share, representing 70.8% of the total gross profit. However, this segment saw a slight decline of 0.6% compared to the previous year.
On the other hand, the relatively new iGaming sector generated $20.8 million in gross profit during its first full year, serving as a bright spot amid an otherwise challenging fiscal landscape.
While traditional revenue sources illustrate a saturated market with minimal growth, the Rhode Island casino industry's future appears to be betting big on digital innovations. As online casinos and other online avenues grow, the industry seems poised to adapt to modern demands while continuing to funnel significant resources back into the state's budget.
