Commercial online casinos in the United States recently completed their most lucrative quarter ever. The American Gaming Association (AGA) touted that achievement, among many others in a recent accounting of commercial gambling activity from the third quarter of 2023.
Overall, Q3 2023 was the second-highest-grossing quarter for commercial gaming in the US ever. Amid the new record for online casino revenue in a quarter, a different industry segment could be churning out a new high of its own.
Commercial online casino revenue blows by the previous record
For the first time, legal non-tribal online casino revenue across the United States has surpassed $1.5 billion in a quarter in the AGA’s accounting. That includes gambling licensees’ win from live dealer games, online poker, online slots, and online table games.
The gambling industry’s second quarter of 2023 represented the previous standard.
Currently, five US states offer legal commercial real-money online casino apps to residents and visitors. Such apps are also available in Connecticut, but the two tribal casino operators in the state control that gaming. The five states are:
- New Jersey
In addition to representing a new record, the over $1.5 billion in online casino win is an improvement of 26% from Q3 2022. That made online casino revenue the US commercial gambling industry’s fastest-growing segment for the quarter.
That sum also played a part in putting Q3 just short of reaching a new cumulative revenue record.
Gambling industry flirts with another record quarter
For the larger commercial gambling industry in the US, the third quarter of 2023 is now the second-most lucrative quarter ever. According to a press release from the AGA, physical casino gaming also achieved a new quarterly high.
While the entire industry fell about $500 million short of a new high compared to Q1 2023, the third quarter was the best-ever for non-tribal land-based casinos in the US. Their revenue from poker, slots, and table games was almost $12.5 billion in Q3 2023. As a result, gambling licensees paid over $3.4 billion in fees and taxes during Q3 2023.
In the end, the sports calendar for July through September kept Q3 2023 from overtaking Q1 2023. Revenue from commercial legal sportsbooks was down about $600 million for Q3 2023 compared to Q1 2023.
Q1 2023 has the distinct advantage of containing March Madness, the NFL playoffs, and the Super Bowl. That trifecta makes the first quarter of each year the busiest for sportsbooks. However, sportsbooks will likely finish the year strong with American football back in action.
To set a new quarterly record of its own, sports betting revenue for Q4 2023 would have to reach $2.8 billion. Since this is the first full NFL season with legal online gambling in Maryland, Massachusetts, and Ohio, that seems feasible.
The entirety of 2023 seems like a sure thing to become the best year for commercial gambling ever. The third-quarter numbers played a huge part in that determination.