Iowa’s gaming industry has developed and fluctuated in the past few years. Traditional casino revenues are seeing slight declines, sports betting is growing rapidly, and the state has become a hub for video game development.
Gambling Revenue In Fiscal 2024
In the fiscal year ending June 2024, Iowa’s 19 licensed casinos reported a combined revenue of $1.72 billion according to the Iowa Racing and Gaming Commission. This total was a slight decrease from the previous year’s $1.76 billion. The decline is following a downward trend as combined revenues peaked at $1.79 in fiscal 2022. Despite this, the totals remain above pre-pandemic levels, which averaged at around $1.46 billion in 2018 and 2019.
Attendance at the physical casinos reflected this trend. There were 17.5 million casino admissions in 2022, but the numbers dropped to 17.1 million in 2023 and 16.9 million in 2024. Industry analysts attribute these changes to several factors, including regional competition, economic conditions, and the prevalence of online casinos. Although online casinos are not yet legal in the state, Iowans can access regulated out-of-state or offshore casinos that offer tempting promotions and convenience that can’t be matched by the state’s casinos (Source: https://casinobeats.com/online-casinos/).
Casino gambling has been introduced in neighboring Nebraska, which has drawn many residents living in the west of Iowa, seeing a reduction in patrons and revenue at Horseshoe Casino in Council Bluffs.
Sports betting, a subsection of gambling, has experienced growth. The total sports wagering handle reached $2.6 billion in fiscal 2024, an increase from the recorded $2.2 billion in the previous year.
Revenue Down Year-Over-Year In February
The declining revenue trend has continued into 2025. Casinos reported a combined revenue of $127.3 million in February, which is down 11.1% for the same month in 2024. Table games and slot machines contributed to this decline. Table game revenues decreased by 12.5% from $65.3 million to $57.2 million, and slot revenues saw a 10.9% drop from $129.5 million to $115.4 million.
Only three of the state’s casinos reported revenues over $10 million for February, and all of them saw year-over-year declines:
- Horseshoe Casino Council Bluffs: $12.9 million, down from $15.4 million.
- Prairie Meadows Racetrack and Casino: $17.8 million, down from $19 million.
- Ameristar Casino Council Bluffs: $12.3 million, down from $15.8 million.
Sports betting, in contrast, remained resilient. Net receipts rose 56.3% year-over-year, increasing from $13.6 million to $21.3 million for February 2024 and 2025 respectively. However, the handle and payouts experienced slight declines compared to the previous year.
Studies Analyzing Iowa’s Gambling Market
The future of gambling in Iowa was the subject of two recent studies, each coming to a different conclusion, especially regarding the creation of new casinos in the state.
The Iowa Racing and Gaming Commission commissioned two independent studies in August 2024 to assess the impact of building a new casino in Cedar Rapids.
One study found that the casino will result in economic growth and attract tourists, increasing overall gaming revenue for the state. The conclusion relies on the notion that the casino will introduce new users who are not currently spending time at casinos, expanding the market.
The second study raised concerns about market saturation. It argued that the new casino might cannibalize revenues from existing establishments, especially those closer to Cedar Rapids, without contributing to the state’s economy. The study concluded that another land-based casino will divide a limited customer base without attracting new gamblers.
These contrasting conclusions have resulted in a debate among stakeholders and the Iowa Racing and Gaming Commission, and careful considerations will have to be taken of both the benefits and potential negative outcomes before a new casino license is issued.
Eastern Iowa Becoming Video Game Mecca
Iowa is emerging as a center for video game development that goes beyond casino games. Iowa City is home to Budcat Creations, the developer behind Guitar Hero, Band Hero, and DJ Hero for various gaming consoles.
Cedar Falls hosts Phantom EFX, a company that develops and publishes casino card games for Windows and Mac. Phantom EFX recently collaborated with another Cedar Falls-based studio, 8monkey Labs, to release Darkest of Days, a first-person shooter game for Xbox and Windows.
Educational institutions in the state are noticing this trend, with some, like the University of Dubuque, offering undergraduate courses in video game software design.