AMERICAN GAMING ASSOCIATION
Right Revenue Mix
Land-based gaming revenue remains strong but sports betting and iGaming continue to rise
BY DAVE FORMAN
The commercial gaming industry entered 2023 on the heels of back-toback record revenue years , generating more than $ 60 billion in 2022 . With continued macroeconomic uncertainty likely this year , all eyes in the industry are focused on whether consumers will be able to propel the continued expansion of the commercial gaming market .
January revenue numbers are now in across the country , and it ’ s clear gaming is off to a quick start in 2023 : commercial operators brought in $ 5.4 billion in gaming revenue in the month , an all-time monthly high .
Here are three key takeaways on the industry ’ s promising beginning to the year and its outlook for the future .
Brick-and-Mortar Gaming Remains Strong Combined revenue from land-based casino slot machines and table games across the country reached $ 3.99 billion in January , marking a 14.3 percent increase from January 2022 . Slots generated $ 2.86 billion in revenue , a 15.5 percent year-over-year increase , while revenue from table games gained 14.7 percent year-over-year , reaching $ 838 million .
This rise is partially due to the impact the Covid-19 omicron variant had on consumer behavior last January — as well as the launch of two additional commercial casino markets since last January in Virginia and Nebraska . Last year ’ s favorable comparison aside , this was the highest grossing January in history for the brick-andmortar segment .
Demand for Gaming is High Across the Country While gaming ’ s expansion to new markets is contributing to growth , so is rising revenue in existing markets . At the state level , 31 of 33 commercial gaming jurisdictions that were operational in January 2022 ( and have reported Jan- uary 2023 revenue figures ) posted year-over-year revenue growth .
The only two markets that did not report growth are Washington , D . C . and West Virginia . The sports betting market in Washington , D . C . experienced a decline of 23.8 percent compared to January 2023 , likely due to increased competition from Maryland launching online sports betting . Meanwhile , West Virginia revenue declined by 6.3 percent , largely due to one less week of reported operations in January 2023 compared to January 2022 .
Sports Betting and iGaming Making up Bigger Piece of the Pie While in-person gaming remains the bedrock of the gaming industry , the expansion and maturation of complementary verticals is also an important driver of gaming ’ s momentum .
Fueled by a busy sports calendar and the launch of mobile sports betting in Kansas , Louisiana , Maryland and Ohio ( retail and mobile ) since January 2022 , nationwide sports betting activity — both online and in-person — saw a significant boost , with January wagering handle expected to reach an all-time high of more than
$ 10 billion once all states report their data .
This surge in betting activity resulted in revenue of $ 922.7 million , a year-over-year increase of 43.3 percent . The Ohio market alone generated gross revenue of $ 208.9 million in its first month of operation , setting a single-month sports betting record for any state , albeit helped by promotional spending .
Combined January revenue generated by continuing iGaming operations in Connecticut , Delaware , Michigan , New Jersey , Pennsylvania and West Virginia increased by 20.6 percent yearover-year to $ 482 million , tying the single-month record from December 2022 . All six markets reported annual growth for the vertical , with Connecticut , Michigan and New Jersey setting single-month state records for iGaming revenue .
Taken together , the online sports betting and casino gaming segments captured a quarter ( 24.8 percent ) of monthly industry revenue — their largest share since the peak of the Covid-19 pandemic when brick-and-mortar casinos across the country were shuttered .
Ultimately , January ’ s revenue figures show that gaming is appealing to consumers in new markets but is also still growing its share of con-
10 Global Gaming Business APRIL 2023