With the growth of legalized casino markets and sports betting, the commercial casino industry saw some major gains in 2023, according to the American Gaming Association’s (AGA) latest update of the “Commercial Gaming Revenue Tracker.” Last year’s gaming total set a new U.S. record.
Commercial gaming revenue reached $66.5 billion in 2023, surpassing the previous record from 2022, which saw a high of $60.5 billion. Last year’s revenue topped that by 10%, marking the industry’s third-straight record revenue year. AGA officials pointed to moving offshore online sports betting and gaming to the legal, regulated live and online markets as some keys to the continued growth in the industry.
“From the traditional casino experience to online options, American adults’ demand for gaming is at an all-time high,” AGA President and CEO Bill Miller said. “Sustaining our momentum will take unified industry efforts around combating pernicious illegal operators and growing responsible gambling efforts in tandem with the growth of the legal market — both of which the AGA is committed to lead on throughout 2024.”
Inside the Numbers
While the entire year proved to be a record, the AGA noted that the fourth quarter really stood out. The months of October, November, and December produced an all-time high quarterly revenue of $17.4 billion. That was anchored by $6.2 billion in revenue in December, the highest grossing month in industry history.
The rise of sports betting around the country may have played a major part of that as football season was playing out, including an entertaining playoff drive for the NFL and competitive college football matchups. The MLB playoffs were also underway in October and the NBA and NHL seasons were underway.
To back that up, the new report notes that the commercial gaming industry continues to evolve, with online gaming now making up almost a fourth (24.7%) of nationwide commercial gaming revenue for 2023, also a new annual record. Here’s a look at the report’s insight on each gaming sector:
- Traditional gaming – Live casino slots and table games grossed a record $49.4 billion in 2023, up 3.3% over 2022. At the state level, 19 out of 27 traditional gaming markets saw record annual revenue totals.
- Sports betting – In 2023, sports betting achieved new records for handle ($119.8 billion, up 27.8%) and revenue ($10.9 billion, up 44.5%). The report noted: “This growth was largely fueled by continued maturation across most existing markets as well as several new markets, particularly in Massachusetts and Ohio.”
- iGaming – Online casino revenue grew 22.9% year over year to $6.2 billion in 2023 for the six states with full-scale legal iGaming.
Big Revenue Numbers in Majority of States
In 2023, 12 of the top 20 commercial casino gaming markets reported revenue growth compared to the previous year. The Las Vegas Strip, despite seeing lower profits overall, remained the country’s top market and saw the strongest year-over-year gains.
New Jersey remains the second-highest grossing market with Atlantic City’s nine casinos still popular among gamblers in the northeast. The Chicagoland area, which includes casinos in Illinois and Indiana, was the country’s third-largest gaming revenue producer in 2023. That region flipped rankings with the Baltimore-Washington, D.C. market, which finished fourth, while the Mississippi Gulf Coast region rounded out the top five.
On the tax and fee side, the commercial gaming industry also contributed more to state and local government coffers than ever last year. That included paying an estimated $14.4 billion in direct gaming revenue taxes, an increase of 9.7% from 2022. The industry also contributes billions of additional dollars to states each year in the form of income, sales, payroll, and various other corporate taxes.
“Gaming’s success translates directly to the success of the states, cities and towns in which we operate,” Miller said. “We are proud to be in 47 U.S. jurisdictions, acting as economic drivers, creating jobs and providing the funding that makes critical public education programs, infrastructure projects, problem gambling resources and more possible.”
Looking Ahead
These commercial gaming totals may just be the tip of the iceberg, considering that the numbers don’t include tribal gaming operators. While those numbers aren’t available yet, the National Indian Gaming Commission reported a record of $40.9 billion in revenue for 2022, an increase of 4.9% over 2021.
Considering the trend at the commercial gaming level, it seems likely the tribal gaming industry may see similar gains.
Even more states, including Alabama, Georgia, and others, are also considering adding expanded gaming options in the coming months. Adding more legalized sports betting states is also a possibility for 2024, and some tribes across the country are also seeking to launch additional casino projects. Gaming continues to be a major industry across the country.
