In a remarkable display of resilience and growth, the U.S. commercial gaming industry has set yet another record in Q1 2023, with revenue totaling an astounding $16.60 billion. This achievement marks the eighth consecutive quarter of record-breaking performance, as revealed by the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker. The standout highlight of this quarter was the industry’s highest-grossing month ever, with March raking in a staggering $5.90 billion.
AGA CEO Bill Miller on the Industry’s Strength
AGA President and CEO Bill Miller expressed his views on this impressive streak, stating, “After two full years of successive growth post-COVID, the U.S. gaming industry has never been stronger. With records across every gaming vertical—from brick-and-mortar casinos to mobile gaming—American adults continue to choose gaming as one of their top entertainment options.”
Commercial Gaming Revenue Tracker Highlights
State-by-State Growth: Across the country, 18 of the 35 commercial gaming markets established new revenue records for the quarter, with only Mississippi not surpassing its quarterly revenue from Q1 2022.
Diverse Revenue Streams: All sectors within the commercial gaming industry achieved quarterly revenue records in Q1 2023. Retail gaming constituted a substantial 75.3% of total revenue, while online gaming reached its largest share ever at 24.7%.
Traditional Gaming: Traditional brick-and-mortar casino gaming produced a remarkable quarterly revenue of $12.30 billion, surpassing the previous high of $12.26 billion in Q3 2022.
Legal Sports Betting: The nationwide appetite for sports betting reached new heights, with Americans wagering a record $31.11 billion on sports in Q1 2023. This generated an all-time high of $2.79 billion in quarterly revenue, marking a remarkable 70.1% year-over-year increase. The growth was primarily driven by new market launches in Kansas, Massachusetts, Ohio, and the introduction of mobile betting in Maryland.
iGaming: The iGaming sector continued its upward trajectory, grossing $1.48 billion in Q1 2023, marking a substantial 22.7% year-over-year revenue increase.
State of the States 2023 Report
The AGA also released its annual “State of the States” report, offering a comprehensive analysis of the U.S. commercial gaming industry in 2022, including economic and regulatory insights on a state-by-state basis. The report showcases that commercial gaming contributed a record $13.48 billion in direct gaming tax revenue to state and local governments in 2022, marking a remarkable 15.3% increase from the previous year. This figure does not encompass the additional billions generated from income, sales, or other taxes.
Bill Miller emphasized the gaming industry’s significant impact on local communities, stating, “As one of the biggest taxpayers in states across the country, we know that when gaming is successful, so are our communities. Beyond our significant tax contributions, our industry is ingrained in local communities, bolstering economic development through job creation, supporting local charities and nonprofits, and setting the standard on corporate responsibility.”
Background
The AGA’s Commercial Gaming Revenue Tracker offers a comprehensive look at the financial performance of the U.S. commercial gaming industry, drawing from state revenue reports. This issue specifically focuses on Q1 2023 results.
During Q1 2023, 34 states and the District of Columbia featured operational commercial gaming markets, including casino gaming, sports betting, and iGaming.
The AGA’s State of Play Map provides an in-depth overview of gaming’s economic impact, industry regulations, and casino locations on a state-by-state basis for both the commercial and tribal gaming sectors.