US commercial gaming revenue hits $14.31bn in Q1 2022

AGA’s newly released State of the States 2022 report serves as the definitive economic and regulatory analysis of U.S. commercial gaming in 2021.

Press release.- Commercial gaming is off to its fastest start ever to a year, with Q1 2022 industry revenue nearly breaking the all-time quarterly record of $14.35bn, according to AGA’s Commercial Gaming Revenue Tracker.

Total commercial gaming revenue for Q1 2022 increased nearly 29 per cent year-over-year and nearly every (32 of 34) commercial gaming jurisdiction surpassed Q1 revenue from last year.

Sports betting and iGaming continued to see tremendous expansion, with both verticals setting all-time quarterly records on the back of new state launches and sizeable growth in existing markets.

March was the highest-grossing revenue month in industry history and among the top three months ever for each gaming vertical: land-based casino gaming, sports betting and iGaming.

Between the Lines: Commercial gaming revenue is still up considerably in year-over-year comparisons, despite Q1 2021 marking the first period in which the industry saw most major COVID-19 restrictions lifted across the country. This points to sustained market growth for the industry beyond a bounce back from the pandemic.

“Consumers continue to seek out gaming’s entertainment options in record numbers. Q1’s strong results build on the industry’s record year in 2021 despite continued headwinds from supply chain constraints, labour shortages, and the impact of soaring inflation.” – AGA President and CEO Bill Miller

Commercial Gaming Generates Record $11.69bn in State, Local Tax Revenue in 2021

AGA’s newly released State of the States 2022 report serves as the definitive economic and regulatory analysis of U.S. commercial gaming in 2021. Compiled with Vixio GamblingCompliance, it explores the industry’s remarkable bounce back in 2021 on a national and state level.

Report Highlights

2021 set a new annual record for commercial gaming, reaching $53.03bn—a 21.5 per cent increase from the previous high in 2019.

Commercial gaming operations generated a record $11.69bn in direct gaming tax revenue paid to state and local governments by commercial gaming operations. This does not include the billions more paid in income, sales or other taxes.

All jurisdictions with commercial casino or sports betting operations reported an increase in gaming revenue compared to 2020, and 23 of 34 jurisdictions achieved record annual commercial gaming revenue in 2021.

Why it Matters: With the ever-shifting competitive and regulatory landscape, the State of the States provides a singular reference point to understand each state’s commercial gaming market, legal regime, and how it fits into the broader industry.

Legal Sports Betting Reaches New Heights Four Years Post-PASPA

This Saturday marks four years since the landmark Supreme Court decision to invalidate the Professional and Amateur Sports Protection Act.

By the numbers: 2018-Today

• 34 states plus Washington D.C. have legalized sports betting with Americans wagering $122bn since May 2018.
• $1.26bn paid in taxes to state and local governments from $8.6bn in sportsbook revenue.
• More than 300 partnerships have launched between gaming companies and leagues, teams and media companies.

“Four years post-PASPA, legal sports betting’s a success is proving what we’ve known all along: American consumers are eager to wager within the protections of the regulated market. It also reinforces the need to stamp out offshore, illegal operators who prey on vulnerable customers,” said Bill Miller, AGA President and CEO

As of today, half of the American adults—130 million—have access to the safety of the legal sports betting market in their home state, with four additional states awaiting launch.
Sports betting legalization is cutting into the pervasive and unregulated offshore market, but there is still work to do. According to Google data:

Searches for offshore sportsbook brands grew by 38 per cent between 2020-2021, faster than searches for legal sportsbook brands (+36 per cent).

In legalized states, searches for offshore brands constituted 27 per cent of sportsbook search volumes, compared to 68 per cent in non-legalized states. In some mature legal sports betting markets, like New Jersey and Pennsylvania, regulated brands comprise more than 85 per cent of searches.

Since the invalidation of PASPA, American sports leagues and teams have embraced sports betting to strengthen revenue opportunities, fan engagement, and the integrity of competitions.