Hurricane Milton is going to be one of the most expensive natural disasters on record. Upon landfall, most of Florida’s establishments went into lockdown. We discuss the economic impact below.
Florida has been hit by hurricanes before. However, this year saw two in close succession, and they never get any easier. In fact, the financial fallout could be one of the worst ever. With casino revenue being hit, it may be time to rethink Florida’s position on online casino gaming as a way to recoup costs. We discuss it in the article below.
How Casinos in Florida Reacted
The casinos in Florida reacted in different ways to the onslaught of Hurricane Milton earlier this month. One of the major providers in Tampa, the Seminole Hard Rock, remained open. Only its poker rooms, sportsbooks, and some other hospitality areas were shuttered and off-limits. Generally, these larger casinos are a barometer of how others in the state will react. As a result, TGT Poker in Tampa also closed and Win! Derby/Derby Lane in St. Petersburg also shut up shop. Luckily, Milton was downgraded to a category three hurricane as it headed into Florida, despite huge warnings it was going to be much worse in the days leading up. The casino industry was anticipating it with bated breath.
Data from the Florida Gaming Control Commission suggests that the average revenue for a September/October gaming period can be $10 million on slot games alone. However, this weather has been a double blow as Hurricane Helene landed at the end of September, also temporarily closing operations. It remains to be seen how much the weather has cost the industry and the state until the dust settles and the finances can be checked.
The Gambling Industry Is Booming in Florida and Across North America
Florida is in the midst of a gambling and casino boom. There are only around fifteen casinos in the state, many situated in the south. Yet research from the American Gaming Association suggests that they bring in around $690.9 million per year in revenue. Around 72,892 jobs are supported in the industry.
Part of the state’s loss may come down to the fact that its casinos are physical, and they do not allow gambling through online methods. You can bet using sportsbooks, but playing slots, poker, and other table games is forbidden. In fact, there are only seven states in the United States where this is allowed. This has seen many American-led companies turn their attention elsewhere for expansion. BetMGM, a homegrown US firm, has recently moved into the United Kingdom and Canada. You can look here at how it ranks for those betting from new markets like Ontario and Canada. Regulated by local bodies, these casinos offer safe alternatives that allow the state to keep receiving revenue even if physical casinos happen to be closed in the bitter Ontario winters. It is something many Florida residents believe would be an asset to the state.
Hurricane Miltons Cost
Hurricane Milton made landfall at Siesta Key on the night of Wednesday, 9th of October. A category three hurricane, it left a trail of devastation. All of this had come off the back of Hurricane Helene just a few weeks before. Many households had already started the process of stripping back wet fittings and trying to rebuild after the devastation of that encounter.
The economic pileup will be huge, not just for the casino industry. By Friday evening, fuel was in limited supply. This had a domino effect, meaning even businesses that were not physically damaged then found it hard to operate. There were also widespread power outages, with DeSoto County being the worst hit. In Polk County itself, around 395 households were left without power. In terms of financial damage, it is expected that the double whammy from these two hurricanes will be at a cleanup cost of around $50 billion. What is worse is that many residential and commercial properties were not insured, with some media outlets guessing that around 95% of those in the state do not have hurricane insurance. For those insured, it is going to cost the insurers around $36 billion to pay them all out.
The dangerous October is a sad end to a summer that has been great for casino goers in the state. In August, one woman entered the Hard Rock Casino in Seminole and managed to scoop a $1,253,321.04 win from a mere $12.50 bet. This was the top prize on the slot machine and one that would change her life. However, by no means is it the biggest on record. One anonymous visitor to the M Resort & Henderson scored a $17.3 million prize jackpot.
It is not a case of if another hurricane comes to Florida, but when. As a prime geographical location with rising sea temperatures, these are inevitable. How it impacts the casino industry remains to be seen. Online casinos can provide a huge revenue boost that will be sustained despite the closure of physical casinos. With regular clean-up bills of this size, it may be something the state cannot afford to overlook.
