The American Gaming Association (AGA) has reported phenomenal growth in the US gaming industry, with commercial gaming revenue reaching an all-time high of $15.17 billion in Q3 2022. This achievement surpassed the previous record set in Q2 2022 by an impressive 2%. The year-on-year growth rate of 8.8% outperformed the broader US economy’s 2.6%, reflecting the industry’s resilience and popularity.
Land-Based Gaming:
Land-based gaming, including slots and table games, played a significant role in the industry’s success, generating a record $12.27 billion in Q3 2022, marking a 1.8% increase from the same period in 2021. Despite the rise of online gaming, the appeal of traditional casino experiences remains strong, contributing substantially to the overall revenue.
Surging Sports Betting:
Sports betting emerged as a star performer, setting a new quarterly revenue record of $1.68 billion in Q3 2022, representing a remarkable 80.6% year-on-year increase. The surge in sports betting demonstrates the growing interest in this form of gambling, especially with the expansion of legal betting markets across various states.
Steady iGaming Growth:
iGaming, which includes online casino games and poker, maintained its steady growth, contributing $1.21 billion in revenue during Q3 2022. While this figure remained relatively stable compared to the previous year, iGaming continues to be a key driver in diversifying the gaming industry’s offerings and attracting a younger demographic.
Sports Betting and iGaming Combined:
Together, sports betting and iGaming combined accounted for $2.89 billion in quarterly revenue, making up 19.1% of total gaming revenue. This represents a slight increase from the previous quarter and showcases the significance of these segments in the overall gaming landscape.
State-Level Performance:
The AGA’s Commercial Gaming Revenue Tracker reveals remarkable performances at the state level. Sixteen states achieved record-breaking revenue in a single quarter, with five of the largest commercial gaming markets—Indiana, Michigan, Nevada, New York, and Pennsylvania—leading the charge.
Notable State Performances:
Indiana: Reported $728.0 million in Q3 2022.
Michigan: Achieved $796.5 million in Q3 2022.
Nevada: Boasted an astounding $3.77 billion in Q3 2022.
New York: Surpassed the billion-dollar mark, reaching $1.06 billion in Q3 2022.
Pennsylvania: Generated a record $1.33 billion in Q3 2022.
Overall, 29 out of 33 commercial gaming jurisdictions that were operational a year ago witnessed increased Q3 revenue compared to 2021, indicating widespread growth.
Challenges and Future Prospects:
Despite the remarkable achievements, the gaming industry faces its share of challenges. Some jurisdictions experienced a decline in revenue compared to Q3 2021, with Delaware, Maine, Mississippi, and Washington, D.C., encountering minor drops. However, the sustained momentum and high consumer demand bode well for the industry’s future growth.
The US gaming industry’s record-breaking revenue of $15.17 billion in Q3 2022 reflects its resilience and popularity. Land-based gaming, sports betting, and iGaming played pivotal roles in driving this growth. Moreover, individual states achieved outstanding performances, with several breaking quarterly revenue records. The industry’s continued momentum amid economic fluctuations underscores its robustness and paves the way for a promising future.