Q1 2024 Sees Record $17.7 Billion in US Commercial Gaming Revenue

The American Gaming Association (AGA) announced a new quarterly record for commercial gaming revenue in the United States, with an impressive $17.7 billion (£14bn/€16.3bn) reported for Q1 2024. This milestone marks the 13th consecutive quarter of growth in the US gaming industry, according to the AGA’s Commercial Gaming Revenue Tracker. This tracker provides detailed state-by-state and cumulative insights into the industry’s performance, based on state revenue reports.

Record-Breaking Revenue in March

March alone saw revenue reach $6.1 billion, making it the second highest-grossing month in US gaming history. Additionally, Q1 witnessed 11 states setting new quarterly revenue records, including major markets like Pennsylvania. These records highlight the robust growth and expanding influence of the gaming sector across the country.

The AGA reported that a record $14.7 billion was paid to state and local governments in 2023 from direct gaming tax revenue. This figure represents a 9.7% increase from 2022 and does not include additional contributions from income, sales, or other taxes.

AGA President and CEO Bill Miller expressed optimism about the future, stating, “While gaming’s momentum remains strong, 2024 will be the new baseline for future growth after several years of sports betting legalization and post-pandemic consumer shifts. Gaming’s continued growth relies on maintaining our commitment to innovation and responsibility.”

Impact of New Market Launches and iGaming

Rhode Island’s launch of iGaming in March contributed significantly to the record Q1 performance. Bally’s Corporation’s online casino went live, making Rhode Island the seventh US state to offer igaming. The US igaming sector grossed a record $2 billion in Q1, reflecting a 26.1% year-on-year increase, bolstered by Rhode Island’s entry into the market.

Retail and online gaming both experienced growth in Q1, although at slower rates compared to previous quarters. Retail gaming ed for 70.7% of the total Q1 revenue with $12.3 billion, showing a modest 0.3% year-on-year increase. The AGA attributed this stagnation to adverse weather conditions early in the quarter. Online gaming achieved its highest ever share of total revenue at 29.3%.

Sports Betting and Community Benefits

Americans wagered a record $36.9 billion on sports in Q1, generating $3.3 billion in quarterly revenue, a 22% year-on-year increase. New market launches in states like North Carolina and Vermont contributed to this surge.

“As gaming expands, more communities than ever are benefitting,” Miller said. “We are proud to create jobs across the country, provide world-class entertainment experiences that offer safe alternatives to the pervasive illegal gambling market, and generate tax revenue to critical public projects.”

Top Brands Driving Growth

The record Q1 performance was driven by growth among top US gaming brands. DraftKings reported a 52.7% year-on-year increase in revenue, reaching $1.2 billion, up from $769.7 million in the same quarter last year. Consequently, DraftKings raised its full-year revenue guidance to between $4.8 billion and $5 billion, from the initial target of $4.65 billion to $4.9 billion. The company also adjusted its EBITDA target to between $460 million and $540 million, from the previous range of $410 million to $550 million.

Flutter Entertainment-owned FanDuel achieved over $1.4 billion in Q1 revenue, with its igaming gross gaming revenue market share reaching a new high of 27%. Flutter CEO Peter Jackson commented, “We have had an excellent start to the year. In the US, FanDuel’s top-line momentum is translating into strong growth in US adjusted EBITDA and market share gains. We are focused on continuing to expand our player base, market share, and embedding future profits within our business through disciplined investment.”

Source:

“AGA reports record quarterly US revenue with 13th straight quarter of growth”, igamingbusiness.com, May 16, 2024.