The U.S. gaming industry continues to flex with an average of 4.9% annual growth as of August 2023. This trend started back in February 2021, making last August the 30th month in a row to do so and the 12th straight month in which all sectors combined earnings reached over $5 billion.
August Keeps Streak Rolling
When combining revenues for iGaming, land-based casinos, and sports betting the numbers continue to swell. August proved to be the 12th consecutive month in which those combined revenues topped the $5 billion mark with August revenues checking in at $5.14 billion.
Domestic gaming revenues through the first eight months are 10.4% ahead of the same time last year and are on pace to break the yearly record for the third straight year. After tabulating August’s revenues, the gaming industry has profited a whopping $43.15 billion with four months remaining in 2023.
Of the 33 U.S. gaming states and jurisdictions operating since last year, we find that 17 have experienced an increase but land-based casino gambling and retail sports betting growth has slowed to 1.1% since March due primarily to the advent of online casino gambling and mobile sports betting.
As evidence of this, land-based casino slots, table games, and retail sports betting experienced less than 1% percent year-over-year growth in August while iGaming was up 24.6%. The allure of gambling with a PC or mobile device is fast becoming more and more accessible despite only six states, Delaware, Michigan, Nevada, New Jersey, Pennsylvania, and West Virginia offering iGaming with Rhode Island scheduled to join the revenue party in 2024.
Expansion
Of course, the expansion of online sports betting is also responsible for much of the growth with Kansas, Maryland, Massachusetts, and Ohio opening its online sports betting markets within the past year.
Including August, sports betting revenues are up over 60% from the same time last year to where revenues are now at $6.14 billion. That number is significant on many levels but considering the handle is only up 21.6% to $68.23 billion over the first eight months means the win rates are increasing as well.
iGaming Boosting Revenues
The gaming industry has rebounded with fury since the dark days of a COVID-19-ravaged economy that shuttered casinos and provided little else in the way of recreation for U.S. citizens. However, that seems like forever ago as domestic gaming is alive and well.
Bill Miller, President and CEO of the American Gaming Association (AGA), said earlier this year, “After two full years of successive growth post-COVID, the U.S. gaming industry has never been stronger. With record growth 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.”
All of the six iGaming states but Delaware reported year-over-year growth in August with nearly $496 million in combined revenue, which is up 23.4% from August 2022. The growth of iGaming coupled with the rapid expansion of digital sports wagering has caused a lucrative revenue stream for those state and municipal governments that have regulated gambling in their jurisdictions.
“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.”
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