US gaming reaches USD 16B in revenue for another quarter

High demand for online gaming in the US spurred revenues to an upward of 40% higher year-on-year; growth driven by allowance of online sports betting in various states; traditional casino gaming dominated by table games and slots.

Original story by Yogonet.com

The U.S. commercial gaming industry recorded $16.07 billion in revenue in the second quarter fueled by a significant surge in demand for online gaming.

Revenue from commercial gaming, encompassing traditional casino games, sports betting and iGaming together helped the industry surpass the $16 billion mark for a consecutive second quarter. The three-month period marked the industry’s second highest-grossing quarter ever and the tenth consecutive quarter of annual growth.

Nationwide gaming revenue grew at 8.1% year over year in Q2 compared to 16% annual growth in the first quarter when the industry set a new quarterly high at $16.6 billion, reveals data compiled by the American Gaming Association.

In the second quarter, the growth in total gaming revenue was fueled by the online gaming verticals – particularly online sports betting – while land-based gaming was relatively flat.

Online gaming revenue surged 43.1% year-over-year as online sports betting and iGaming revenue reached $3.68 billion in total. Online revenue expansion was mainly driven by the introduction of online sports betting in Kansas, Maryland, Massachusetts, and Ohio within the past year.

Although a lighter sports betting calendar led to a sequential decline in the online share of overall gaming revenue from Q1, online sports betting and iGaming still accounted for 22.9% of quarterly commercial gaming revenue.

Quarterly revenue generated by land-based gaming – casino slots, table games and retail sports betting – reached $12.38 billion, essentially flat from the first quarter (-0.3%). Annual growth slowed to 0.9 %, down from a pace of 7.0% in Q1 and 1.6% in Q4 2022.

Through June, gaming revenue was pacing 11.9 percent ahead of the same period in 2022, totaling $32.71 billion.

At the state level, 23 of 34 commercial gaming jurisdictions that were operational one year ago increased Q2 revenue from 2022. Among gainers, two states – Massachusetts and Virginia – marked all-time records for a single quarter due to the recent inception of sports betting and land-based casino respectively.

Florida, Indiana, Iowa, and Mississippi reported quarterly revenue contraction of between -1.6 and -6.2%, while Washington, D.C. dropped -9.1% as the small sports betting-only market continued to lose ground to neighboring Maryland and Virginia. Other states with revenue declines in Q2 fell by less than a percent.

Learn more about how other states in the US contributed to the country’s Q2 revenue in the original article by Yogonet.com here: https://www.yogonet.com/international/noticias/2023/08/16/68348-us-commercial-gaming-crosses-16-billion-revenue-mark-for-second-consecutive-quarter-driven-by-surge-in-online-gaming