The commercial gaming industry in the United States is at an all-time high, with revenue reaching record levels in the first quarter of 2024.
On Thursday, the American Gaming Association (AGA) disclosed its count for the period from January to March. Earnings from casinos, iGaming, and sports wagering reached $17.67 billion, a record peak for any quarter.
The increase wasn't completely surprising, as the country introduced four new states to the sports betting market, and online casino gambling launched in Rhode Island in March.
"While gaming’s momentum remains strong, 2024 will be the new baseline for future growth after several years of sports betting legalization and post-pandemic consumer shifts,” said AGA President and CEO Bill Miller. “Gaming’s continued growth relies on maintaining our commitment to innovation and responsibility.”
The commercial gaming sector reported a historic annual revenue of $66.5 billion in the previous year. That represented a 10% rise compared to 2022.
Countrywide Expansion
The AGA announced that 11 states saw record gaming revenue in the first quarter. New York and Pennsylvania appeared on the list, signifying two of the wealthiest gaming states in the nation.
Conventional gaming, which includes physical casinos and riverboat slot machines and table games, generated $12.34 billion in quarterly revenue. It was a minor 0.3% increase compared to the previous year, but still a rise.
Sports wagering, now permitted in nearly 40 states and Washington, DC, produced gross earnings of $3.33 billion. Oddsmakers earned 22% additional revenue from bettors compared to Q1 of 2023.
iGaming platforms earned $1.98 billion from online players, marking a 26% increase compared to the previous year. Online casinos are still restricted to only seven states: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia.
The first quarter of 2024 signified the gaming industry's 13th straight quarter of annual gross gaming revenue (GGR) growth. The quarter closely surpassed the fourth quarter of 2023 for the record when GGR reached $17.64 billion.
Nevada continues to be the wealthiest gaming state in the nation. Casinos, sportsbooks, and taverns in the Silver State earned over $3.9 billion in the quarter, marking a 2% increase. Pennsylvania ranked second with nearly $1.7 billion, an 8% increase, while New Jersey came in third with $1.5 billion, representing a 16% rise.
Out of the 32 states with any type of commercial gaming, just eight saw year-over-year declines in GGR. The states included were Indiana (-2%), Iowa (-2%), Missouri (-4%), Montana (-35%), New Hampshire (-10%), New Mexico (-4%), Ohio (-16%), and Rhode Island (-3%).
Gaming Perspective
The gaming sector has prospered in the years following the COVID-19 pandemic, yet gaming leaders aren’t excessively worried about a potential decline in gaming expenditures in the coming years.
The AGA recently surveyed gaming executives to gather their perspectives on the industry's short-term forecast. Over 90% (94%) conveyed a sense of optimism, describing the present industry environment as “good” or “satisfactory.”
Earlier this month, Miller remarked that the market is nearing “normalization” after several years of growth following the US Supreme Court’s May 2018 ruling on sports betting. The historic decision invalidated a federal statute that restricted single-game sports betting to Nevada.