Monday, April 15, 2024

U.S. Commercial Gaming Revenue Soars to Record $66.5 Billion in 2023

by BIZ Magazine

U.S. commercial gaming revenue soared to an all-time high of $66.5 billion in 2023, marking the sector’s third consecutive year of record-breaking revenue, according to the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker.

The annual revenue figure surpassed the previous year’s record of $60.5 billion by an impressive 10 percent, underlining the sustained growth and resilience of the industry despite challenges posed by the pandemic.

“The demand for gaming among American adults has reached unprecedented levels, spanning from traditional casino experiences to online platforms,” stated Bill Miller, President and CEO of the AGA. “Maintaining this momentum requires concerted efforts to combat illegal operators and promote responsible gambling initiatives, both of which the AGA is fully committed to leading in 2024.”

One of the standout highlights of 2023 was the all-time high quarterly revenue of $17.4 billion recorded in Q4, with December emerging as the highest grossing month in the industry’s history, raking in $6.2 billion in revenue.

The evolution of the commercial gaming landscape was evident, with online gaming accounting for nearly a quarter (24.7%) of total commercial gaming revenue, reaching a new annual high. Traditional brick-and-mortar casino gaming also experienced significant growth, grossing a record $49.4 billion in 2023, up 3.3 percent from the previous year.

Sports betting saw remarkable achievements in 2023, with new records set for handle ($119.8 billion) and sportsbook revenue ($10.9 billion), representing increases of 27.8 percent and 44.5 percent, respectively. The expansion of sports betting markets, particularly in states like Massachusetts and Ohio, contributed significantly to this growth.

Similarly, iGaming witnessed substantial year-over-year growth, with online casino revenue surging 22.9 percent to $6.2 billion across six states with full-scale legal iGaming.

In terms of market performance, 12 of the top 20 commercial casino gaming markets reported revenue growth compared to the previous year. The Las Vegas Strip led the pack with the strongest year-over-year gains, followed by New Jersey, Chicagoland, Baltimore-Washington, D.C., and the Mississippi Gulf Coast.

Moreover, the commercial gaming industry’s contributions to state and local governments reached unprecedented levels, with operators paying an estimated $14.4 billion in direct gaming revenue taxes—an increase of 9.7 percent year-over-year.

“Gaming’s success translates directly to the prosperity of the states, cities, and towns where we operate,” emphasized Miller. “As economic drivers, we create jobs, contribute tax revenue, and support critical public programs, infrastructure projects, and problem gambling resources.”

Miller is set to delve deeper into the full-year 2023 commercial gaming revenue figures and outline AGA’s priorities for the coming year during the AGA’s annual State of the Industry webinar scheduled for February 20 at 11:30 AM ET/8:30 AM PT.

The AGA’s Commercial Gaming Revenue Tracker provides detailed insights into the financial performance of the U.S. commercial gaming industry, while its State of Play Map charts gaming’s economic impact and regulatory landscape on a state-by-state basis.

About the AGA: As the national trade group representing the U.S. casino industry, the American Gaming Association fosters an environment where legal, regulated gaming thrives, supporting a $329 billion industry and 1.8 million jobs nationwide.

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