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US commercial gaming revenue is off to a hot start in 2024. While all sectors increased year-over-year in the first quarter, iGaming led the way with an all-time high Gross Gaming Revenue (GGR) of $1.98 billion, according to the American Gaming Association (AGA).
All six states that started the year offering iGaming saw an increase in GGR during the first three months. On top of the increases, a new state began offering iGaming during the first quarter.
Key takeaways
- US Commercial gaming revenue slows but continues to grow.
- iGaming revenue grossed an all-time high during the first quarter.
- Every state with iGaming set a quarterly revenue record.
- Sports betting remains strong.
iGaming revenue was up 26.1% year-over-year for Q1 2024
The $1.98 billion GGR from iGaming during the first quarter was a 26.1% increase from the first three months a year ago.
The AGA made it a point to credit the newest state to offer online casinos for the revenue increase. The quarter’s revenue jump was also helped by states that started the year with online casinos.
Rhode Island’s mid-March entry into the online casino market was good for $1.2 million in Gross Gaming Revenue (GGR). All six states that offered iGaming coming into the new year — New Jersey, Pennsylvania, Michigan, Delaware, West Virginia, and Connecticut — set a quarterly revenue record during the first quarter.
Revenue from online casinos reached its largest share of the US commercial gaming market. During the first quarter, iGaming took a record 29.3% share of commercial gaming revenue.
Online sports betting was up 22% but its growth wasn’t as great as iGaming during the first quarter.
US commercial gaming grew for the 13th straight quarter
According to the American Gaming Association (AGA), overall US gaming revenue during 2024’s first quarter was up 5.6% from last year to $17.67 billion. This was the gaming industry’s 13th consecutive quarter of growth.
In a press release, AGA President and CEO Bill Miller commented on the continued growth of US commercial gaming saying:
“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.”
Land-based casinos still account for the lion’s share of US gaming revenue. During the quarter retail gaming accounted for 70.7% of total revenue.
Slot machines and table games at land-based casinos showed a modest 2.9% compared to the first quarter of 2023. Online gaming saw big increases.
Land-based casino revenue showed a small increase
While iGaming revenue saw a huge jump during the first quarter, traditional casino gaming revenue slowed throughout the country.
Slot machines and table games at land-based casinos generated $12.34 billion in revenue. This was a tiny 0.3% increase from the US gaming industry’s revenue in 2023 for the first quarter.
Revenue for the year started slowly in Jan. and Feb. but got stronger as temperatures heated up. In March, land-based casinos had an all-time monthly revenue record of $4.46 billion. This was a solid 2.7% year-over-year increase.
Furthermore, it surpassed the previous monthly high of $4.40 billion set in July 2023.
The AGA’s Commercial Gaming Revenue Tracker shows that Nevada still leads the way for land-based casinos. During Q1, Nevada’s GGR was greater than the second and third states combined.
- Nevada’s first-quarter GGR was $3.9 billion.
- Pennsylvania and New Jersey collected $1.7 billion and $1.5 billion, respectively.
Only two other states saw $1 billion GGR or greater during the quarter. New York and Illinois round out the top five states with $1.3 billion and $1 billion, respectively.
