Record Q3 for U.S. Gaming Industry with $17.71 Billion Revenue

Record Q3 for U.S. Gaming Industry with $17.71 Billion Revenue

The U.S. commercial gaming industry achieved a record-breaking $17.71 billion in revenue during the third quarter of 2024, according to the American Gaming Association’s (AGA) “Commercial Gaming Revenue Tracker.” This milestone marks the highest-grossing Q3 on record and represents the 15th consecutive quarter of annual revenue growth for the sector.

Online Gaming and Sports Betting Drive Growth

Much of the Q3 growth stemmed from significant increases in online gaming and sports betting. Combined, these sectors generated $5.14 billion, ing for 29% of total commercial gaming revenue. This share is a substantial jump compared to Q3 2023, demonstrating the increasing importance of online platforms in the gaming landscape.

Legal sports betting saw a remarkable 42.4% year-over-year increase, producing $3.24 billion in revenue from $30.3 billion in wagers. This growth was fueled by the launch of sports betting in Kentucky, Maine, North Carolina, and Vermont, as well as a 28% increase in markets excluding these new entries. Meanwhile, iGaming contributed $2.08 billion, reflecting a 30.3% year-over-year increase.

David Forman, AGA Vice President of Research, noted, “Q3 2024 continued gaming’s momentum from the first half of the year, with online casino and sports betting driving strong growth. At the same time, new brick-and-mortar casino openings bolstered traditional gaming, which still s for the bulk of industry revenue.”

Mixed Performance for Traditional Gaming

Brick-and-mortar casinos generated $12.38 billion in revenue during Q3, slightly down by 0.9% compared to the same period in 2023. While slot machines performed well with $9.1 billion in revenue, up 1.3% year-over-year, table games saw a decline, falling 8.3% to $2.42 billion.

Despite this slight dip, Forman emphasized the resilience of traditional gaming, stating that new casino openings have helped sustain its relevance as a core revenue driver. Fourteen out of 27 land-based gaming markets recorded average revenue growth of 8.5% during the quarter.

State and Local Tax Contributions Surge

The record-breaking quarter also benefited state and local governments, with an 8.9% year-over-year increase in gaming-related tax revenues. Operators paid $3.79 billion in taxes, reinforcing the gaming industry’s role as a significant contributor to public funding.

Of the 35 commercial gaming jurisdictions operating in Q3, 29 experienced year-over-year revenue growth. New Jersey, both suring $1.7 billion. Connecticut saw a 38% increase in revenue due to its combined iGaming and sports betting offerings, while Washington, D.C., posted the largest year-over-year increase at 426%.

Outlook for the Future

Through the first nine months of 2024, U.S. commercial gaming revenue reached $53.24 billion, an 8% increase over the same period in 2023. The industry is on track to achieve a fourth consecutive year of record-breaking revenue.

As online platforms continue to capture a growing share of the market, sustainable growth strategies will be essential. “More than a quarter of commercial revenue now regularly comes from online sources, raising the importance of continued sustainable growth with consumers in those states,” Forman explained.

The AGA’s “Commercial Gaming Revenue Tracker” provides state-by-state insights into the financial performance of the U.S. gaming industry, covering casino gaming, sports betting, and iGaming across 37 states and the District of Columbia.

Source:

Commercial Gaming Revenue Growth Continues in Q3 2024, Driving Industry’s 15th Consecutive Quarter of Growth“, americangaming.org, November 21, 2024.

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