The American Gaming Association (AGA) has unveiled significant figures for the U.S. commercial gaming industry, highlighting a landmark $17.63 billion in revenue for the second quarter of 2024. This achievement represents the 14th consecutive quarter of growth for the industry. Alongside these impressive revenue figures, the industry also contributed $3.73 billion in state taxes, emphasizing its substantial economic impact.
Record-Breaking Quarterly Revenue
The second quarter of 2024 set a new benchmark as the highest-grossing Q2 in the history of recorded gaming revenue in the United States. The gross gaming revenue (GGR) for this period saw an 8.9% increase compared to Q2 2023. For the first half of 2024, GGR totaled $35.48 billion, reflecting a 7.7% rise year-over-year. This sustained growth underscores the industry’s continued expansion and resilience.
Online Gaming
In Q2 2024, online gaming accounted for 28.6% of the total revenue. Despite a marginal revenue decline of 0.7% compared to Q1 2024, online gaming grew by 25.2% compared to the same quarter last year. However, the growth rate for online gaming slowed to 32.5% from 45% in Q2 2023, indicating a deceleration in expansion.
Legal Sports Betting
The sports betting sector demonstrated remarkable growth, driven by new market regulations in Kentucky, Maine, North Carolina, and Vermont. This segment saw a 35.3% increase in quarterly revenue, reaching $3.16 billion. Additionally, total sports wagers amounted to $31.75 billion for the quarter, highlighting a strong appetite for sports betting across the country.
Traditional Casino Gaming
Land-based casinos continued to perform well, generating $12.49 billion in revenue for Q2 2024. This represents a 1.8% increase from the previous year. The growth was further supported by the opening of new casino properties in Illinois, Nebraska, and Virginia, contributing to the overall rise in traditional gaming revenue.
Industry Growth Drivers
The robust growth in sports betting and iGaming was a major factor in the overall revenue increase. The expansion of new brick-and-mortar gaming establishments also played a significant role in driving traditional casino revenue. According to David Forman, Vice President of Research at the AGA, these factors combined to produce strong performance across all sectors of the industry.
Economic Implications and Future Outlook
David Forman highlighted that while sports betting and iGaming were instrumental in revenue growth, the broader economic context also impacted land-based gaming. Mixed year-over-year performance in traditional gaming markets could be attributed to slower consumer spending nationwide. This trend may persist throughout the remainder of 2024, potentially affecting future revenue growth.
The U.S. gaming industry’s performance in Q2 2024 reflects a vibrant and expanding sector, with record-breaking revenue and significant contributions from various gaming segments. The ongoing growth across online and land-based gaming, coupled with new market developments, underscores the industry’s strength and adaptability. As the regulatory landscape continues to evolve and new opportunities arise, the gaming industry is poised to maintain its positive trajectory and continue making substantial contributions to the economy.