US Gaming Markets Made Record Revenues in Q1 2023, Casinos Pull in $12.3B

Article ByDavid Weir

May 17, 2023

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Posted in: US Gambling News, US Casino News, US Sports Betting News

Commercial gaming revenue across the 35 legal markets in the US topped $16.6 billion in the first three months of 2023, according to the updated American Gaming Association’s Revenue Tracker.

The largest industry trade association reports that the sector had its highest month for gross revenue in March, pulling in $5.9 billion.

18 of the US markets set records for the quarter. Only three markets, Mississippi, District of Columbia, and South Dakota made less money than the same period in 2022.

Retail sportsbooks and land-based casinos are still the top choice for US bettors, accounting for 75% of revenues. However, online gambling is fast catching up, with more industry revenue than ever (24.7%) coming from online sources.

Never Been Stronger

“After two full years of successive growth post-COVID, the U.S. gaming industry has never been stronger,” said Bill Miller, AGA president and CEO.

“With record growth across every gaming vertical — from brick-and-mortar casinos to mobile gaming — American adults continue to choose gaming as one of their top entertainment options.”

Casino gaming revenue improved year-on-year by 13.8% to $12.3 billion. Some $8.83 of that was slots, with table games pulling in $2.5 billion over the quarter.

Sports betting saw even bigger rises year-on-year. The overall handle hit $31 billion over that time, showing 15.1% growth. Operators held on to $2.79 billion of that as gross gaming revenue, marking an impressive 70% rise.

Three new sports betting markets launched during this time – Ohio, Massachusetts, and Kansas. Ohio surpassed all expectations for the launch quarter, cementing itself as the second-biggest sports betting market in the country, behind only New York.

iGaming, aka online casinos, still makes up the smallest part of the industry. However, its revenues also grew 22.7% year-on-year, despite not adding any more legal markets to the six that offer such services.

State of the States

The AGA also published a report on the overall state of the industry, with a deeper look at these and 2022’s figures.

This included an overview of the US-wide tax bill for the gaming sector in 2022 – which topped $13.4 billion. That was up 15% from 2021.

Many paid taxes are missing from that figure, too, including what the AGA says amounts to billions more in federal, income, sales, and corporate taxes.

 “As one of the biggest taxpayers in states across the country, we know that when gaming is successful, so are our communities,” Miller said. “Our industry is engrained in local communities, bolstering economic development through job creation, supporting local charities and nonprofits, and setting the standard on corporate responsibility.”

And gaming has had a successful few years indeed. The Q1 2023 revenues have handily beat out Q4 2022’s then record-breaking figure of $15.85 billion. The industry has now set new record revenues every consecutive quarter for two years.

As well those tax payments, the AGA’s roster of commercial and tribal casino operators, sports betting, and iGaming providers represent an industry employing 1.8 million people across the US.