U.S. Commercial Gaming Revenue Hits Record $17.63 Billion in Q2 2024

U.S. commercial gaming industry experienced a significant milestone, achieving $17.63 billion in revenue. This figure, reported by the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker, marks the industry’s highest-grossing Q2 performance on record. Notably, this quarter also represented the 14th consecutive quarter of annual revenue growth for the sector.

Nationwide Revenue Growth

Across the country, 24 jurisdictions reported year-over-year revenue growth in Q2 2024. This widespread increase contributed to the impressive national revenue figure and resulted in $3.73 billion in state taxes directly generated from gaming activities. The strong performance underscores the continued expansion and resilience of the commercial gaming industry, even as economic conditions fluctuate.

Both land-based and online gaming sectors saw annual growth during the quarter. Traditional land-based gaming, which includes brick-and-mortar sportsbooks, ed for 71.4% of total revenue, while online gaming represented the remaining 28.6%.

The growth pace of land-based gaming accelerated slightly compared to the previous year, demonstrating a steady interest in traditional gaming experiences. Online gaming also continued to grow, although the pace of growth slowed compared to Q2 2023. While the online gaming sector experienced a significant year-over-year growth of 32.5% in Q2 2024, this was a decline from the nearly 44% growth seen in Q2 2023. Nonetheless, both sectors played a crucial role in the industry’s overall revenue expansion.

Performance of Major Gaming Verticals

Traditional brick-and-mortar casino gaming generated $12.49 billion in revenue during Q2 2024, reflecting a 1.8% year-over-year increase. Despite a slow start in April, the sector rebounded with revenue gains in May and June, helping to boost the quarterly figures. This growth was further ed by new property openings in states like Illinois, Nebraska, and Virginia, which contributed to the rising traditional commercial gaming revenue.

Sports betting also saw significant growth in Q2 2024. Americans wagered a total of $31.75 billion on sports during the quarter, generating $3.16 billion in revenue. This represents a substantial 35.3% year-over-year increase. The impressive growth can be attributed to the introduction of sports betting markets in new states, including Vermont, since the previous spring. These new market launches have expanded the reach of legal sports betting, driving revenue growth in this sector.

The iGaming sector reached an all-time high in Q2 2024, grossing $1.98 billion in revenue. This figure represents a 26.1% year-over-year increase, highlighting the continued expansion of online gaming. The growth in this sector was bolstered by the launch of Rhode Island’s iGaming market in March, which added to the overall performance of the industry. iGaming has become a significant contributor to the commercial gaming industry’s revenue, reflecting the increasing popularity of online gaming options among consumers.

Insights from AGA’s Revenue Tracker

The AGA’s Commercial Gaming Revenue Tracker provides valuable insights into the financial performance of the U.S. commercial gaming industry. By analyzing state revenue reports, the tracker offers a comprehensive overview of the industry’s growth and trends. The Q2 2024 report highlighted the continued dominance of both traditional and online gaming sectors, as well as the impact of new market launches on overall revenue growth.

As of Q1 2024, 37 states and the District of Columbia had operational commercial gaming markets, including casino gaming, sports betting, and iGaming. The AGA’s State of Play Map further details the economic impact of gaming, industry regulations, and casino locations on a state-by-state basis, providing a thorough understanding of the commercial and tribal gaming sectors across the U.S.

Despite the overall positive performance of the industry, land-based gaming markets have experienced mixed year-over-year comparisons. According to AGA Vice President of Research David Forman, this variability is partly due to slower consumer spending across the broader economy. As a result, some markets have seen slower growth, which may continue to influence the industry’s performance through the remainder of 2024.

Source:

”Commercial Gaming Revenue Reaches $17.63B in Q2 2024, Marking Industry’s 14th Consecutive Quarter of Growth”, americangaming.org, August 15, 2024.