The American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker reports that the U.S. commercial gaming industry has achieved remarkable success, with the second quarter of 2023 reaching a record-breaking $16.07 billion in revenue. This milestone marks the 10th consecutive quarter of annual growth, solidifying the industry’s resilience and ongoing prosperity.
Q2 2023 Sets New Records:
The Q2 2023 revenue of $16.07 billion surpassed the same period in 2022 by an impressive 8.1%, establishing it as the second-highest grossing quarter in the industry’s history.
Notably, Q1 2023 remains the top-grossing quarter, making the first half of 2023 the commercial gaming industry’s strongest half ever, accumulating a total revenue of $32.71 billion.
Year-Over-Year Growth:
The commercial gaming industry has demonstrated consistent year-over-year growth, with H1 2023 revenue tracking 11.9% higher than the corresponding period in the previous year.
Direct Gaming Tax Revenue:
The industry’s robust performance has contributed significantly to state and local governments, generating an estimated $7.28 billion in direct gaming tax revenue during the first six months of 2023.
This marks a substantial 12.9% increase over the same period in the previous year, positioning 2023 to potentially surpass all previous years in gaming tax revenue.
Shift in Revenue Streams:
While land-based gaming still dominates, accounting for over three-quarters of total revenue, the growth trajectory is being driven by the online sports betting and iGaming sectors.
Online Gaming Surge:
Q2 2023 saw a 43.1% year-over-year increase in online gaming revenue, reaching $3.68 billion. The introduction of mobile sports betting in Kansas, Maryland, Massachusetts, and Ohio within the past year played a pivotal role in this surge.
Record-Breaking Sports Betting:
Combined online and land-based sports betting revenue hit an industry record of $2.3 billion in Q2 2023, representing a substantial 56.6% year-over-year increase.
Online casino gaming also achieved a milestone, tying with Q1 as its highest-grossing quarter ever, generating $1.48 billion in revenue—a remarkable 22.5% increase over Q2 2022.
Regional Growth:
Across the nation, 23 out of 34 commercial gaming jurisdictions that were operational one year ago experienced increased Q2 revenue compared to 2022.
AGA President and CEO Bill Miller expressed confidence in the industry’s continued success, emphasizing its positive impact on communities. As the gaming sector anticipates a third consecutive year of record revenue, Miller outlined the AGA’s commitment to combatting the illegal market, promoting responsible gaming, and fostering an environment that allows the industry to deliver world-class entertainment to adults across America.
The U.S. commercial gaming industry’s outstanding performance in Q2 2023, marked by significant revenue growth and record-breaking numbers, underscores its resilience and ability to thrive even in challenging times.