Operator News
US – Commercial gaming revenue sets new quarterly high,topping $16bn in first quarter
By Phil - 17 May 2023
The US commercial gaming industry showed no signs of slowing down in the first quarter of 2023, with gaming revenue growing at an annual rate of 15.5 per cent, according to the American Gaming Association (AGA).
Q1 revenue, which includes traditional casino games, sports betting and iGaming, reached $16.6bn, marking an eighth consecutive quarter of record-breaking reporting for the industry as the quarterly growth rate accelerated from a 10 percent average in the previous three quarters.
Notably, this acceleration was driven by record revenue across all gaming verticals. The combined revenue from land-based casino slot machines and table games was $12.3bn, up seven per cent, while sports betting brought in $2.79bn, an increase of 70.1 per cent, and iGaming totaled $1.48bn, up 22.7 per cent. Despite more challenging comparisons, the industry closed out the quarter with a new single-month revenue record in March with $5.9bn, an increase of 10.3 per cent annually.
In a testament to the overall strength of the US commercial gaming industry at the start of 2023, nearly every commercial gaming jurisdiction experienced an increase in annual revenue, with only Mississippi reporting an annual decline. Eighteen states broke all-time quarterly records for total commercial gaming revenue, including Arkansas, Connecticut, Florida, Indiana, Louisiana, Massachusetts, Michigan, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, Ohio, Oregon, Pennsylvania, Rhode Island and Virginia.
While land-based gaming remained a key driver of overall revenue, sports betting and iGaming enjoyed strong growth in the first quarter of 2023, setting new records for quarterly revenue. In the first quarter, sports betting generated revenue of $2.79bn, surpassing the previous quarter’s high of $2.61bn and showing a 70.1 per cent year-over-year increase, largely thanks to the legalisation in Ohio and Massachusetts. Ohio quickly established itself as a major sports betting market, generating $387.3m in revenue and $2.49bn in handle during the state’s first quarter of operation. This placed Ohio as the second largest sports betting market in the country, only behind New York. Nationwide, Americans wagered a record $31.11bn on sports in the first quarter, accelerating by 15.1 per cent compared to the same period in 2022. This growth was supported by handle growth across 15 of the 26 betting markets operating in Q1 2022, as well as the addition of three new markets in the past year: Kansas, Massachusetts and Ohio.
