US gaming revenue exceeds $66.5 billion for the third consecutive record year

The American Gaming Association (AGA) has announced that gross gaming revenue (GGR) in the US will reach an all-time high of $66.5 billion (£52.7 billion) in 2023, the third consecutive record year /61.6 billion euros).

The 2023 total was a 10% increase over 2022’s $60.4 billion, which in turn was a significant increase over 2021’s $53 billion.

The strong numbers were supported by a record fourth quarter. This included record-breaking quarterly sales of $17.4 billion, while also generating record sales of $6.2 billion.

With a record BGR of $49.4 billion in 2023, land-based casinos continue to perform well. This is an increase of 3.3% year-on-year, with 19 of the 27 traditional gaming markets recording all-time highs in annual revenue.

Sports betting also saw impressive growth, with $119.8 billion in revenue and $10.9 billion in revenue, both records. These numbers increased by 27.8% and 44.5% year-on-year, respectively.

With the National Indian Gaming Commission adding tribal gaming revenue later this year, the U.S. total GGR for 2023 is expected to be close to $110 billion.

Bill Miller, President and CEO of AGA, said: “From the traditional casino experience to online options, American adults’ demand for gambling is at an all-time high.

“Maintaining our momentum will require a unified industry effort to combat harmful illegal operators and increased efforts on responsible gambling coupled with the growth of the legal market – both of which the AGA aims to advance throughout 2024.”

iGaming is becoming more and more attractive in the USA

Igaming is currently only legal in six US states. However, this number is expected to increase in the near future as the sector is witnessing impressive growth.

In 2023, US online casino revenue increased by 22.9% year-on-year, reaching $6.2 billion. Igaming GGR was only $4.75 billion behind sports betting GGR. This is despite the fact that iGaming is legal as a sportsbook in less than one-sixth of the states.

Online gambling accounted for 24.7% of the nationwide BGR in 2023. This is also an annual high and an increase from 19.5% in the previous year.

A number of states are considering introducing iGaming in 2024. One that is unlikely to legalize this year, however, is New York after Governor Kathy Hochul removed iGaming from her 2025 executive budget.

This happened despite New York Senator Joseph Addabbo submitting a revised igaming bill. Senate Bill S8185 built on Addabbo’s previous attempt to introduce online gambling in the Empire State.

Alleviating igaming cannibalization fears

Some quarters have previously believed that the legalization of iGaming could have a detrimental impact on the performance of land-based casinos.

However, a new report commissioned by the iDevelopment and Economic Association (iDEA) has found that online casinos are instead having a positive impact on land-based casinos.

The report compared the compound quarterly growth rates (CQGR) of land-based casino GGR before and after the online casino launch. It was found that each of the six states studied saw a positive change in quarterly growth after iGaming came into play.

As part of the investigation, EKG conducted a survey of casino operators, both land-based and online casinos. It says: “The reaction of the participants was unanimous: no cannibalization took place.”

When asked about the impact online casinos have had on land-based revenue, 20% of participants said it had “increased moderately.” About 80% said it “stayed about the same.”

When asked “How would you describe the impact that the introduction of online casinos is having on land-based casino revenue?”, 100% of respondents said they do not believe cannibalization fears are justified.

Source link