AMERICAN GAMING ASSOCIATION
Records Fall
Revenue keeps flowing in to U . S . commercial casinos , but what did we learn ?
By Anton Severin
As 2022 draws to a close , the gaming industry ’ s hot streak is showing no signs of slowing down , with annual commercial gaming revenue set to shatter 2021 ’ s record for the highest-grossing year in industry history . Through the first nine months of the year , the industry has generated more than $ 44 billion in revenue , up nearly 15 percent year-over-year .
What is driving this impressive run in the face of persistent concerns about the health of U . S . consumer budgets ? The American Gaming Association ’ s ( AGA ) Commercial Gaming Revenue Tracker examines industry trends to answer just that question .
Here are the lessons we learned from our Q3 2022 report .
Record-Breaking Third Quarter Q3 2022 commercial gaming revenue from brick-and-mortar casino games , sports betting and iGaming set a new single-quarter record , reaching $ 15.7 billion and topping $ 15 billion for the first time ever . While the broader U . S . economy expanded at an annual rate of 2.6 percent , gaming revenue accelerated 8.8 percent compared to the same quarter in 2021 .
Casino-Goers are Spending More Americans have yet to return to casinos in the same numbers as before the pandemic , with recent AGA polling indicating that 34 percent of adults visited a casino in the past year ( versus 44 percent in 2019 and 28 percent in 2021 ), but patrons continue to make up the difference through markedly higher spending . In Q3 2022 , revenue per casino admission remained well above pre-pandemic levels ( 37 percent on average ) in the states that publish admissions data .
This trend has been a constant over the past two years , as casino-goers , on average , are higher income earners than before the pandemic . According to AGA survey data , 52 percent of past-year casino visitors reported a household income of more than $ 60,000 , compared to 42 percent of all Americans . In 2019 , these figures were 42 percent and 38 percent respectively .
Land-Based Gaming Reaches New Highs When the factors driving gaming ’ s record revenue are examined , the spotlight is often directed to the rapid rises of sports betting and iGaming , exciting gaming verticals that are still in their infancy across most of the country .
While sportsbook revenue jumped 80.6 percent year-over-year to a record $ 1.68 billion and iGaming revenue nearly matched its Q2 2022 record of $ 1.21 billion , it is still land-based casinos that are driving overall gaming revenue . In the third quarter , land-based casino slot and table games generated an alltime quarterly high of $ 12.27 billion in revenue , up 1.8 percent year-over-year .
Casino Gaming Continues to Expand Third quarter-land-based gaming revenue was further boosted by the launch of commercial casino gaming in two new states , reflecting strong interest for inperson gaming in new geographies .
On July 8 , Virginia became America ’ s 26th state to launch land-based casino gaming when Hard Rock Bristol opened its doors to the public . The state ’ s first temporary location grossed $ 40.3 million in its inaugural quarter of partial operations , outperforming several similarly sized properties in nearby Maryland , Pennsylvania and West Virginia . Subsequently , Nebraska became the 27th state with commercial land-based casino gaming when WarHorse Casino debuted slot gaming on September 24 .
Taken together , AGA ’ s Commercial Gaming Revenue Tracker showcases the continued resiliency of both the U . S . commercial gaming industry and Americans ’ demand for gaming . This resiliency will continue to be challenged by future economic headwinds , but what is clear is that the industry is as healthy today as ever .
Anton Severin is director of research for the American Gaming Association . AGA ’ s Commercial Gaming Revenue Tracker will continue to report on the industry ’ s performance on a monthly and quarterly basis .
10 Global Gaming Business DECEMBER 2022