AMERICAN GAMING ASSOCIATION
Maintaining Momentum
The industry maintains record revenues despite economic challenges
BY ANTON SEVERIN
As 2023 dawned , industry analysts and stakeholders grappled with a pressing question : Could the U . S . casino gaming sector maintain its momentum following two years of unprecedented revenue , particularly amid heightened economic uncertainties ?
With the year drawing to a close , the response so far was a firm “ yes .” With nationwide commercial gaming revenue reporting finalized through Q3 2023 , the sector was poised for a remarkable third consecutive year of breaking revenue records .
Let ’ s take a look at the latest numbers to see what is driving gaming ’ s continued success .
Record Third-Quarter Revenue According to the American Gaming Association ’ s Commercial Gaming Revenue Tracker , the third quarter saw combined revenue from land-based casinos , sports betting and iGaming reach $ 16.26 billion . This marks the industry ’ s highest-grossing third quarter ever , and the second-best single quarter of all time for commercial gaming revenue . Moreover , the total revenue for the first nine months of 2023 stood at $ 48.78 billion , reflecting a robust 10.1 percent increase compared to the same period in 2022 .
Traditional Gaming Surges Forward While much of the discussion around industry growth centers on the expansion of online verticals , traditional casino gaming is also seeing robust growth . Q3 2023 saw combined revenue from brickand-mortar slots and table games hit an all-time high of $ 12.49 billion , reflecting a 1.8 percent year-over-year increase . Examining the first nine months of 2023 , traditional revenue has climbed 3.1 percent nationwide compared to the same period in 2022 , with 20 out of 27 states with traditional commercial gaming markets surpassing their 2022 performances .
Nevada and New Jersey Lead the Way Among the 33 commercial gaming jurisdictions operational one year ago , five set new single-quarter records , including the country ’ s two largest commercial gaming markets : Nevada and New Jersey .
Propelled by a record-breaking quarter for Las Vegas Strip casinos of $ 741.2 million in revenue , Nevada gaming revenue grew 2.9 percent year-overyear , reaching $ 3.88 billion . Meanwhile , New Jersey ’ s highest-ever gaming win of $ 1.56 billion , up 8.6 percent year-over-year , came as the state saw new quarterly highs for both iGaming ($ 469.6 million ) and sports betting ($ 268.2 million ), while Atlantic City casinos experienced their second-best quarter ever for land-based slot machines and table games ($ 816.8 million ).
New Markets Driving Sports Betting Growth Sports wagering revenue reached $ 2.23 billion in Q3 2023 , a 22.8 percent annual increase over the same period last year . Much of this growth comes from the $ 358.7 million in sportsbook winnings from markets that opened since Q3 2022 in Maryland ( online expansion ), Massachusetts , Nebraska ( retail only ) and Ohio . Excluding these new markets , however , Q3 2023 sports betting revenue remained up 7.2 percent year-over-year , representing continued growth among existing markets as well .
Through September , commercial sports betting remained on track for another record-setting year . Revenue for the vertical reached $ 7.2 billion through the first nine months , 52.9 percent higher than the same period last year and nearly matching the vertical ’ s full-year 2022 revenue of $ 7.18 billion .
iGaming Sees Record Quarter The iGaming vertical continued its impressive trajectory , reporting $ 1.52 billion in third-quarter revenue — a remarkable 26 percent increase compared to Q3 2022 and a new single-quarter record . At the state level , Connecticut , New Jersey and Pennsylvania achieved new quarterly revenue records . With year-to-date revenue of $ 4.49 billion , iGaming is poised for another record year , demonstrating a robust 23.8 percent increase compared to the same period last year .
10 Global Gaming Business JANUARY 2024