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US commercial gaming hit a Q2 record of $16.07 billion in total revenue in the second quarter of 2023, according to the American Gaming Association.
The number is an 8.1% yearly increase from Q2 2022, marking the industry’s 10th consecutive quarter of annual growth, the AGA’s Commercial Gaming Revenue Tracker showed.
The report covers 34 commercial gaming jurisdictions, their legal markets, and the District of Columbia, including casinos sportsbooks, and online gambling. Based on revenue reports by each state, the tracker gives a cumulative insight into the US gambling industry’s financial performance.
Q2 2023 second-highest after Q1 2023, making H1 2023 the strongest half year
Q2 2023 is the second-highest grossing quarter in US gaming history, coming after Q1 2023.
AGA reported that the period of the first six months of 2023 had been the US gaming industry’s strongest half-year so far. During H1 2023, US commercial gaming reached $32.71 billion in revenue, an 11.9% yearly increase.
Here’s a quick look into Q2 2023 gross gaming revenue (GGR) per gaming vertical:
- Slots GGR was up 2.2% to $8.89 billion
- Table games GGR decreased 2.1% to $2.46 billion
- Sports betting GGR rose 56.6% to $2.3 billion
- iGaming GGR went up 22.5% to $1.4 billion
Moreover, the US industry’s strong performance has brought in an estimated $7.28 billion in direct gaming tax revenue for state and local governments through H1 2023. AGA estimates that, due to a 12.9% increase from last year, 2023 could generate even more gaming tax revenue than any previous year.
AGA’s president and CEO, Bill Miller, said in a news release:
“While commercial gaming is on track for an unprecedented third consecutive year of record revenue, the lasting impact we’re making on our communities through this record growth is even more impressive.”
Overall growth driven by online gambling segment
The online sports betting and iGaming sectors drove the industry’s yearly growth, even though land-based casinos in the US continued to account for more than 3/4 of total commercial revenue.
AGA said Q2 revenue from land-based gaming (slots, table games and retail sports betting) equaled $12.38 billion, a 0.9% increase from the previous year.
Online gaming revenue during Q2 2023, on the other hand, increased 43.1% yearly to $3.68 billion. The success was partly driven by the launch of mobile sports betting in:
- Kansas
- Maryland
- Massachusetts
- Ohio
Land-based and online sports betting revenue totaled $2.3 billion in Q2 2023, a 56.6% yearly increase.
Online casino gaming during Q2 tied Q1, generating $1.48 billion in revenue. The figure is 22.5% up from the same time last year.
As for Q2 2023 commercial gaming revenue by state, Nevada had the highest revenue, producing $3.69 billion. Pennsylvania was next with $1.42 billion, New Jersey followed with $1.39bn, and New York with $1.16 billion.
23 US commercial gaming jurisdictions saw yearly revenue increase
Out of 34 commercial gaming jurisdictions, 23 that were operational one year ago saw increased Q2 revenue from 2022.
Miller concluded:
“These results are a clear indication that our post-pandemic recovery wasn’t a fluke: the gaming sector continues to thrive, and when we do well, our communities do well.
To sustain this momentum, the AGA will continue enlisting more allies in our fight against the illegal market, bolstering responsible gaming, and building a business environment that allows our innovative industry to bring world-class entertainment to adults across America.”
