Commercial Gaming Industry Sets Quarterly Record, as Players Lose Nearly $18B
T he commercial gaming sector in the US is in a healthier shape than ever before, with first-quarter revenue reaching all-time highs.
On Thursday, the American Gaming Association (AGA) disclosed its total for the January–March timeframe. For any three months, revenue from casinos, iGaming, and sports betting reached a record high of $17.67 billion.
T he expansion wasn't entirely unexpected given that Rhode Island became the first state to provide online casino gambling in March and that the country added four other states to its sports betting industry.
"While gaming’s momentum remains strong, 2024 will be the new baseline for future growth after several years of sports betting legalization and post-pandemic consumer shifts,” said AGA President and CEO Bill Miller. “Gaming’s continued growth relies on maintaining our commitment to innovation and responsibility.”
T he commercial gaming business reported record-breaking yearly revenue last year of $66.5 billion. That was a 10% rise over 2022.
Growth Across the Nation
T he AGA stated that in the first quarter, gaming revenue in 11 states reached record highs. Two of the wealthiest gaming states in the nation, Pennsylvania and New York, were included on the list.
T raditonal gambling, which includes slot machines and table games at land-based and riverboat casinos, brought in $12.34 billion in revenue during the quarter. T hat was a modest 0.3% rise over the previous year, but it was nevertheless an increase.
Currently allowed in nearly 40 states and Washington, DC, sports betting brought in $3.33 billion in gross income. Compared to the first quarter of 2023, oddsmakers made 22% more money from wagerers.
Online players paid iGaming platforms $1.98 billion, a 26% increase from the previous year. Only seven states still have access to online casinos: Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, West Virginia, and Connecticut.
For the thirteenth consecutive quarter, the commercial gaming industry's gross gaming revenue (GGR) increased year over year in the first quarter of 2024. The quarter barely beat the record set by the fourth quarter of 2023, when GGR came to $17.64 billion.
The wealthiest gambling state in the union is still Nevada. Over $3.9 billion was won by Silver State's taverns, sportsbooks, and casinos during the quarter, a 2% increase. New Jersey came in third with $1.5 billion, a 16% increase, and Pennsylvania came in second with about $1.7 billion, an 8% increase.
Only eight of the 32 states with commercial gaming saw a reduction in GGR from year to year. They were Rhode Island (-3%), New Hampshire (-10%), New Mexico (-4%), Ohio (-16%), Montana (-35%), Indiana (-2%), Iowa (-2%), and Missouri (-4%).
Outlook for Gaming
T he COVID-19 pandemic has helped the gaming business thrive, but gaming executives aren't too worried about a potential decline in game spending in the years to come.
T he AGA recently surveyed gaming executives to get their opinions on the sector's short-term prospects. Over 90% of respondents were upbeat, describing the current state of the industry as "good" or "satisfactory."
Miller stated earlier this month that after years of growth in the wake of the US Supreme Court's May 2018 ruling allowing sports betting, the market is getting close to "normalization." A federal statute that restricted single-game sports betting to Nevada was overturned in a historic decision.
