Regulated Sports Betting and iGaming Drive Record Revenue Growth in the U.S.
The regulated sports betting, iGaming, and traditional casino gaming sectors in the United States continue to experience significant growth. According to figures released by the American Gaming Association (AGA), the commercial gaming industry reached new record highs for the third consecutive year, with a revenue of $66.5 billion in 2023, marking a 10% increase from the previous year.
The remarkable surge in revenue can be attributed in part to the robust performance of the industry in the fourth quarter of 2023, which generated $17.4 billion. Notably, December alone saw a historic high of $6.2 billion in revenue. Additionally, revenue from state and local taxes amounted to $14.4 billion.
The demand for gaming, including both traditional casino experiences and online options, remains at an all-time high among American adults. This growth is further accompanied by efforts to combat illegal operators and expand responsible gambling initiatives in the country.
Significant market expansion was witnessed in 2023, with the entry of Massachusetts and Ohio into the gaming industry. Moreover, states such as New York, New Jersey, and Illinois set new records during the year. Sports betting revenue soared by an impressive 44.5%, reaching $10.9 billion, while the total amount wagered reached an all-time high of $119.8 billion. Amazingly, New York alone accounted for nearly 16% of all sports betting in 2023.
During the fourth quarter, there was a robust year-over-year increase of 30.8% in gross revenue, amounting to $3.4 billion. What’s more, with North Carolina set to launch online sports wagering, the number of U.S. states allowing legal sports betting will rise to 38.
One significant contributor to the revenue growth in the industry is mobile wagering, which has seen substantial success. Approximately 25% of commercial gaming revenue is now generated online. Although online casinos are currently operational in only six U.S. states, this sector managed to generate an impressive $6.2 billion in revenue in 2023, representing a 23% year-over-year increase. Traditional casinos also saw a modest increase of 3.3% in revenue, reaching an all-time high of $49.5 billion. Notably, 19 out of the 27 states saw profit growth year-over-year.
The success of the gaming industry has wide-ranging implications, benefiting the states, cities, and towns where it operates. It serves as a vital economic driver, creating jobs and providing funding for essential public services, including education programs, infrastructure projects, and resources to tackle problem gambling.
Analyst comment
Positive news. The regulated sports betting, iGaming, and traditional casino gaming sectors in the U.S. achieved record-high revenue growth in 2023, with a 10% increase from the previous year. The demand for gaming remains high, and efforts to combat illegal operators and promote responsible gambling are ongoing. Market expansion is expected with new states entering the industry. Mobile wagering is a significant contributor to revenue growth. The success of the industry benefits the economy, creating jobs and funding essential public services. The market is likely to continue growing in the near term.