Overview
The US gaming sector celebrated another remarkable year in 2023, boasting a staggering $66.5 billion in annual commercial revenue, as revealed by recent data from the American Gaming Association. This remarkable figure signifies a notable 10% surge from the previous peak of $60.5 billion in 2022, marking the industry’s third consecutive year of record-breaking revenue. Notably, the outstanding performance of 2023 was fueled in part by an unprecedented quarterly revenue of $17.4 billion in Q4, with December 2023 emerging as the highest-grossing month in the industry’s history, raking in $6.5 billion in revenue.
Growth Drivers and Market Trends
During a briefing by the AGA, David Forman, the VP of Research, succinctly summed up the industry’s trajectory, stating, “It’s been a record-setting few years, and the future looks bright.” AGA research underscores that while in-person gaming at brick-and-mortar establishments remains the cornerstone of the industry, significant growth has also been witnessed in iGaming and sports betting sectors. An impressive 38 states have now legalized sports betting, representing over three-quarters of the nation, while iGaming has been given the green light in seven states.
Market Analysis
AGA President and CEO Bill Miller emphasized the industry’s unprecedented demand, noting, “There’s record demand for what we offer.” The most notable sports betting markets include New York, New Jersey, Illinois, and Ohio, while leading iGaming markets include New Jersey, Michigan, and Pennsylvania.
Regional Markets and Projections
In 2023, 12 of the top 20 commercial casino gaming markets reported revenue growth, with the Las Vegas Strip leading the charge in year-over-year gains, closely followed by New Jersey. It’s important to note that the AGA’s figures exclude tribal gaming revenues, which are expected to further bolster the US gaming sector, potentially reaching a staggering $110 billion in gaming revenue once reported, nearly equivalent to the American beer market.
Future Outlook and Priorities
Looking ahead to 2024, Miller expressed confidence in building upon the industry’s momentum, albeit acknowledging the challenge of sustaining continuous record-breaking growth. Nevertheless, he remained optimistic, stating, “If any industry can do it, it’s this one.” Miller outlined the AGA’s priorities for 2024, including advocating for responsible gaming practices and combating illegal gambling activities. Highlighting the industry’s substantial economic impact, which amounts to $330 billion annually and supports 1.8 million jobs, Miller underscored the importance of safeguarding the industry’s positive reputation.
“Gaming’s success directly translates to the success of the states, cities, and towns in which we operate,” Miller concluded, emphasizing the industry’s commitment to maintaining its hard-earned reputation and fostering continued growth and prosperity.
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