US Online Casinos Unaffected By Economic Slowdown

Written By Derek Helling on August 12, 2022
second quarter 2022 revenue us online casinos

While some industries are currently experiencing an economic slowdown, US online casinos aren’t bothered.

The American Gaming Association‘s latest release for the second quarter of 2022 says the total of all commercial gambling activity across the US hit a new high across the quarter that ended in July 2022. While brick-and-mortar casinos still represent the greatest part of that sum, online casinos are keeping pace in their own right.

Industries that are adjacent to casinos and gambling, including hospitality and food service, have seen repeated labor shortage issues that often affect their profits, but not so for the casino industry.

US online casinos surpass record at first opportunity

The first three months of this year were a stellar showing for US online casinos. However, the second quarter was just a tad bit better. All this comes as Business Insider reported that seven out of 10 restaurant operators say they don’t have enough labor to meet demands and Globe St. shared a poll of hotel managers in which 97% of them shared they can’t fill open positions.

The AGA’s revenue tracker shows online casinos and online poker play across the six states in which they are legal in the US produced $1.21 billion in gross revenue in Q2 2022. Gross revenue is essentially the difference between the money that’s gambled on casino apps and the payouts those casinos make.

That $1.21 billion is an improvement of over 34% from the second quarter of 2021. It’s just a slight improvement of a few million dollars over Q1 of this year, though.

Still, that quarter-over-quarter comparison shouldn’t dampen the spirits of any online casino operators. The AGA also says for the first half of 2022, the total of $2.42 billion in online casino revenue is an increase of 43.5% as compared to the first half of 2021.

This performance contributed to an all-time best quarter for all commercial gaming across the country. For example, two of the six states that allow at least some online casino play, Nevada and Pennsylvania, reported their best overall quarters ever.

Retail casinos in the US cashed in, too

The fears over online casinos cannibalizing retail casino gaming continue to be unfounded. Physical slots and table games from all commercial gambling properties in the US produced a record $11.24 billion in revenue from April through July 2022. The record was for those segments both combined and individually.

That total includes an increase of less than a percent from the first quarter of this year for slots but an impressive uptick of more than 18% on the table games side. For the first half of 2022, the total of $23.67 billion rose nearly nine percent in terms of slots and almost 29% for table games compared to H1 2021.

With revenue from both online and retail sports betting figured in, the second quarter of 2022’s total commercial gaming activity came to $14.81 billion. The AGA says that’s an improvement of more than three percent from Q1. Thus, 2022 remains on pace to become the most lucrative year ever for commercial casinos in the United States.

There’s no guarantee that the third quarter of 2022 will surpass that $14.81 billion mark. However, even if that doesn’t happen, 2022 could still be the single greatest year to be in the gambling business in the United States yet.

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Derek Helling

Derek Helling is a lead writer for PlayUSA. Helling focuses on breaking news, including legislation and litigation in the gaming industry. He enjoys reading hundreds of pages of a gambling bill or lawsuit for his audience. Helling completed his journalism degree at the University of Iowa.

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