The American gaming industry witnessed remarkable growth in 2023, achieving record-breaking revenue figures for the third consecutive year. According to the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker, the industry’s revenue surged to $66.5 billion, marking a significant 10% increase from the previous year’s $60.5 billion.
Overview of Revenue
In 2023, the US commercial gaming sector experienced robust growth, with quarterly revenue reaching $17.4 billion in Q4 alone. December emerged as the highest-grossing month, contributing $6.2 billion to the total revenue. This consistent upward trajectory reflects the growing demand for gaming experiences among American adults, as highlighted by AGA President and CEO Bill Miller.
Online Gaming’s Influence
Online gaming emerged as a significant contributor to the industry’s success, constituting nearly one-quarter (24.7%) of commercial gaming revenue in 2023. With an increasing number of states legalizing online gambling, this segment experienced substantial growth, generating $6.2 billion in revenue from six states. This trend underscores the evolving preferences of consumers and the industry’s adaptability to technological advancements.
Sports Betting Expansion
The expansion of sports betting also played a pivotal role in driving revenue growth. The total sports betting handle reached an impressive $119.8 billion, accompanied by a revenue of $10.9 billion, marking a substantial increase of 27.8% and 44.5%, respectively. This growth was fueled by the maturation of existing markets and the introduction of sports betting in several new jurisdictions, reflecting the increasing acceptance and popularity of this form of gambling.
Performance of Traditional Brick-and-Mortar Casinos
Despite the rise of online gaming and sports betting, traditional brick-and-mortar casinos remained a cornerstone of the industry. In 2023, these establishments grossed $49.4 billion from casino slots and table games, representing a 3.3% increase from the previous year. Notably, 19 out of 27 traditional gaming markets reported record annual revenue, indicating sustained interest and engagement among patrons.
Regional Performance
The performance of various gaming markets across the United States demonstrated significant regional disparities. The Las Vegas Strip emerged as the top market, witnessing substantial gains, followed by New Jersey, which maintained its position as the second-highest grossing market. Chicagoland surpassed the Baltimore-Washington, D.C. market to secure the third position, while the Mississippi Gulf Coast claimed the fifth spot. These regional variations underscore the diverse landscape of the US gaming industry and the unique factors influencing market dynamics.
Economic Impact and Social Responsibility
Beyond revenue generation, the gaming industry plays a crucial role in supporting local economies and communities. With operations in 47 US jurisdictions, gaming establishments serve as economic drivers, creating jobs, and generating revenue to fund essential public programs, including education, infrastructure, and problem gambling resources. AGA President and CEO Bill Miller emphasized the industry’s commitment to responsible gambling initiatives and combating illegal operators, highlighting the importance of sustainable growth and ethical business practices.
The US gaming industry’s exceptional performance in 2023 reflects its resilience and adaptability in the face of evolving consumer preferences and regulatory changes. From the surge in online gaming to the expansion of sports betting and the enduring popularity of traditional casinos, various factors have contributed to the sector’s continued growth. As the industry looks ahead to 2024, stakeholders must prioritize responsible gambling practices, regulatory compliance, and innovation to sustain this momentum and drive long-term success.