U.S. commercial gaming revenue hits record high in Q1 2023
The U.S. commercial gaming industry generated a record $16.60bn in revenue in Q1 2023, marking the industry’s eighth straight record-breaking quarter.
Press release.- U.S. commercial gaming revenue reached a quarterly record of $16.60bn in Q1 2023, marking the industry’s eighth straight record-breaking quarter, according to the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker. The quarter was highlighted by the industry’s highest-grossing month ever of $5.90bn in March.
AGA President and CEO Bill Miller, said: “After two full years of successive growth post-COVID, the U.S. gaming industry has never been stronger.
“With records across every gaming vertical—from brick-and-mortar casinos to mobile gaming—American adults continue to choose gaming as one of their top entertainment options.”
Commercial Gaming Revenue Tracker Highlights
Across the country, 18 of 35 commercial gaming markets set new revenue records for the quarter, with only Mississippi trailing its quarterly revenue from Q1 2022.
Every commercial gaming vertical saw quarterly revenue records in Q1 2023. Retail gaming accounted for 75.3 per cent of total revenue while online gaming represented its largest share ever, 24.7 per cent. Looking further at each sector:
- Traditional Gaming: Traditional brick-and-mortar casino gaming generated quarterly revenue of $12.30bn, surpassing the previous high of $12.26bn in Q3 2022.
- Legal Sports Betting: Nationwide, Americans wagered a record $31.11bn on sports in Q1 2023, generating an all-time high of $2.79bn in quarterly revenue (+70.1 per cent year-over-year). The growth compared to Q1 2022 was largely driven by new market launches in Kansas, Massachusetts and Ohio, and the launch of mobile betting in Maryland.
- iGaming: iGaming grossed $1.48bn in Q1 2023, marking a 22.7 per cent year-over-year revenue increase.
State of the States 2023
The AGA released its annual State of the States report today, which provides the definitive state-by-state economic and regulatory analysis of U.S. commercial gaming in 2022 for policymakers, gaming stakeholders and industry observers.
State of the States 2023 reveals that commercial gaming generated a record $13.48bn in direct gaming tax revenue paid to state and local governments in 2022—up 15.3 per cent from 2021. This does not include the billions more paid in income, sales or other taxes.
“As one of the biggest taxpayers in states across the country, we know that when gaming is successful, so are our communities,” added Miller. “Beyond our significant tax contributions, our industry is engrained in local communities, bolstering economic development through job creation, supporting local charities and nonprofits, and setting the standard on corporate responsibility.”
Background
- AGA’s Commercial Gaming Revenue Tracker provides state-by-state and cumulative insight into the U.S. commercial gaming industry’s financial performance based on state revenue reports. This issue highlights Q1 2023 results.
- 34 states and the District of Columbia featured operational commercial gaming markets in Q1 2023, including casino gaming, sports betting and iGaming.
- AGA’s State of Play Map charts gaming’s economic impact, industry regulations and casino locations on a state-by-state basis for both the commercial and tribal gaming sectors.
