Casino Revenue Impact Idaho Sports Betting Outlook

The outlook on Idaho sports betting legalization remains remote.

Policymakers in The Gem State seldom discuss it. Opposition towards it is profuse. The reasons for this disinterest vary. Everything from morality and gambling addictions to the complexity of regulation and a potential lack of customer interest is cited as a driving force behind the opposition to sports betting in Idaho.

Generally speaking, though, staunch views against gambling tend to soften with time. That is certainly the case with online sports betting in the United States. Thirty-eight states, as well as the District of Columbia, have now legalized some form of sports wagering. When a majority of the states have made a specific change, the expectation is that the remaining dominoes will continue to fall.

However, the case of Idaho sports betting may be up against the reverse. Opposition to gambling may actually be on the rise. And the overall decline in casino revenue might just be the catalyst for continued disinterest.

Markets with Sports Betting are Seeing a Dip in Reported Casino Revenue

This issue is bubbling to the surface thanks to the recent legalization of sports betting in Missouri. Residents recently voted to approve a petition that brings sports gambling to The Show-Me State.

In response, however, many have already started wondering how the introduction of online sports betting in Missouri will impact casinos. This includes folks in Idaho. The Idaho Press recently published a piece by David A. Lieb that shines a spotlight on how legal sports betting impacts the casino industry. This excerpt on opposition to sports betting in Missouri stands out above everything else:

“The $14 million opposition campaign has been funded entirely by Caesars Entertainment, which operates three of Missouri's 13 casinos. Although Caesars generally supports sports betting, it opposes ‘the way this measure is written,’ said Brooke Foster, a spokesperson for the opposition group Missourians Against the Deceptive Online Gambling Amendment. In some other states, sports betting is run through casinos. Though research is limited, a study of seven states released last year found that casino gambling revenue declined as online sports betting increased. ‘There will definitely be a shift from placing bets in a physical space with a Missouri incorporated casino versus hopping on an app in your living room,’ Foster said.”

The findings from the study cited by Lieb make sense. Indeed, as of 2023, the vast majority of legal sports betting placed in the United States were processed by mobile betting sites. Exact shares are tough to find. But it is estimated that over 75 percent of bets placed, on average, went through betting apps.

This number is only expected to climb as we close out 2024. We already know that mobile sports betting accounts for over 90 percent of wagering handles in certain markets.

Idaho Sports Betting Could Have a Similar Impact on Local Casinos

The aforementioned market share is bound to have an impact on casinos. While most now have mobile betting apps in the USA, they still remain dependent on physical foot traffic.

Imagine the effects Idaho sports betting could have on the state’s own casino operations. According to 500Nations.com, there are seven tribal casinos in Idaho run by four different tribes. If Idaho online sports betting is legalized, they stand to lose a ton of business.

Sure, casinos offer gaming options and experiences that draw in people regardless of the legal status for online sports betting. But so many of these online sportsbooks in the USA also offer virtual casinos. Many, of course, will still appreciate the physical experience of gaming at casinos. But this isn’t purely a matter of preference. It’s about convenience.

Residents in more rural parts of the country, such as Idaho, are not always centrally located to casinos. Some may need to travel multiple hours to reach one. Faced with the decision to drive a sizable distance or open an app from the comfort of your own home, what do you think many Idaohans are bound to do?

The answer to this question may play a part in future Idaho sports betting discussions. Other issues are obviously on the table. But finding a workaround that preserves the casino business will be critical if things are ever going to change.

Potential Solution to the Sports Betting Dilemma in Idaho

Most potential solutions to this problem will suggest forcing online sportsbooks in Idaho to partner up with casinos. That could certainly work. It is, after all, a route other states have taken.

Still, even that ends with Idaho casinos splitting or sharing revenue with larger corporations operating outside the state. If policymakers and casino stakeholders are genuinely concerned about the impact of sports betting, any initiative may require a more aggressive approach.

To that end, Idaho could follow in the footsteps of Wisconsin sports betting. The latter has legalized only in-person wagering at tribal casinos. If Idaho mirrors that setup, it not only preserves casino operations but possibly increases their revenue streams.

Granted, once you go down this path, people will invariably want online sports betting. We have seen plenty of calls to legalize online sports betting in Wisconsin since they launched in-person services. By the time Idaho sports betting reaches that point, though, it’ll at least have a firmer infrastructure in place. And at that point, they may be more open to—or outright welcome—partnerships with larger online sportsbooks.

Take a look at this list of the top online sportsbooks so you can find one that works for all of your sports betting needs: