U.S. Commercial Gaming Q2 2023 Report Shows Record Growth
The U.S. commercial gambling sector has once again demonstrated its robustness, achieving a record $16.07 billion in total revenue for the second quarter of 2023.
This impressive figure marks an 8.1% year-over-year increase from Q2 2022. It’s also the tenth consecutive quarter of annual growth.
The stats were provided in the latest quarterly report from the biggest gambling trade association, the American Gaming Association or AGA.
On a state level, Nevada’s gambling operators (Las Vegas Strip pictured) continued to lead the way with $3.69 billion in revenues over the quarter.
“These results are a clear indication that our post-pandemic recovery wasn’t a fluke: the gaming sector continues to thrive, and when we do well, our communities do well,” said AGA President and CEO Bill Miller.
“To sustain this momentum, the AGA will continue enlisting more allies in our fight against the illegal market, bolstering responsible gaming, and building a business environment that allows our innovative industry to bring world-class entertainment to adults across America.”
Online Gambling Surges
A significant portion of this quarterly growth can be attributed to the online gaming sector. Online gaming revenue for Q2 2023 surged by 43.1% year-on-year, culminating in a total of $3.68 billion.
This remarkable growth in the online sector was partly fueled by the introduction of mobile sports betting in several states, including Maryland, Massachusetts, and Ohio.
Several more states are due to launch legal sports betting markets later this year, including Kentucky and North Carolina.
Land-based gaming, which encompasses casino slots, table games, and retail sports betting, generated a revenue of $12.38 billion.
This figure represents a modest 0.9% increase from the previous year.
In contrast, the online sports betting and online casino sectors were the primary drivers of the industry’s annual growth.
Despite the dominance of land-based casinos, which account for more than three-quarters of the total commercial revenue, the online segment is growing far faster than brick-and-mortar casinos.
Slots revenue witnessed a 2.2% increase, amounting to $8.89 billion. Table games experienced a slight decline of 2.1%, settling at $2.46 billion. Sports betting revenues soared by 56.6%, reaching $2.3 billion. Online casino revenues rose by 22.5%, totaling $1.4 billion.
Furthermore, the first half of 2023 has been identified as the strongest half-year ever for the U.S. gaming industry. The combined revenue for H1 2023 reached an impressive $32.71 billion, marking an 11.9% year-over-year increase.
On a state level, the historic leaders in Nevada’s gambling sector continued to lead the pack with the highest revenue, generating a cool $3.69 billion over the quarter.
Following closely were Pennsylvania with $1.42 billion, New Jersey with $1.39 billion, and New York with $1.16 billion. Out of the 34 commercial gaming jurisdictions, 23 that were operational a year ago reported an increase in Q2 revenue from 2022.
Connecticut, New Jersey, Pennsylvani,a and West Virginia all posted record quarterly revenues in the online casino market.
Lasting Impact on Communities
The flourishing state of the U.S. gaming industry has also translated into significant tax contributions.
Commercial gaming operations contributed an estimated $7.28 billion in direct gaming tax revenue to state and local governments during H1 2023. With a 12.9% increase from the previous year, 2023 is poised to set new records in gaming tax revenue generation.
“While commercial gaming is on track for an unprecedented third consecutive year of record revenue, the lasting impact we’re making on our communities through this record growth is even more impressive,” Miller said.
In conclusion, the U.S. commercial gaming sector’s consistent growth, driven primarily by the online segment, shows it has adapted to the post COVID-19 pandemic world.
As the market continues to evolve and adapt to changing market dynamics, the future looks promising for stakeholders and communities alike.