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The American Gaming Association (AGA) dropped its latest quarterly update, and the numbers look good. The gambling industry is keeping up its momentum, with all four major sectors — total gaming revenue, traditional casinos, sports betting and iGaming — showing their best second-quarter results.
Total US commercial gaming revenue for Q2 2024 was $17.63 billion. That’s 14 quarters in a row of growth — a serious winning streak.
According to AGA Vice President of Research David Forman, Q2’s industry revenue growth was fueled by sports betting and online casinos:
“While sports betting and iGaming continued to drive overall industry revenue growth in the second quarter, new brick-and-mortar property openings in Illinois, Nebraska, and Virginia also led to rising traditional commercial gaming revenue.”
Key takeaways
- US commercial gaming revenue reached $17.63 billion in Q2 2024.
- The industry saw its 14th consecutive quarter of growth, with a 14% increase in revenue compared to Q2 2023.
- iGaming and sports betting revenue reached $3.95 billion and $6.67 billion, respectively, with year-over-year growth of 25.2% and 28.7%.
- States generated $3.73 billion in tax revenue from gaming in Q2 2024.
US online gaming’s share of revenue grows to 28.7%
iGaming and sports betting have raked in $3.95 billion and $6.67 billion, respectively, with a year-over-year growth of 25.2% and 28.7%. While traditional casinos still dominate the scene, it’s clear that online gambling is here to stay.
Revenue from US online casinos (iGaming) took a tiny dip (less than 1%) from Q1 to Q2 this year—the second year in a row we have seen a slight slowdown between quarters. But here is the good news: all six states with iGaming saw year-over-year growth in Q2, with Delaware leading the pack at 264%.
The other five states saw solid growth too, ranging from 20 to 39%. Compared to Q1, online casino revenue increased in:
- Rhode Island
- Delaware
- West Virginia
- New Jersey
Although revenue fell for online casinos in Connecticut, Michigan and Pennsylvania.
Breaking it down, traditional land-based gaming brought in the lion’s share of revenue (71.4%), while online gaming made up the remaining 28.7%.
The year-to-date numbers look good, with a 7.7% increase in gross gaming revenue to $35.48 billion. Traditional casinos added $24.83 billion, up 1.1%, although their pace has slowed somewhat.
Q2 results were a mixed bag at the state market level, with 15 out of 27 markets experiencing a decline in traditional casino revenue compared to last year, with an average drop of 3.3%. Forman added:
“Across the country, land-based gaming markets are seeing mixed year-over-year comparisons due to slower consumer spending economy-wide, which may continue to be a factor through the remainder of 2024.”
States win big with gaming tax revenue in Q2 2024
Gaming paid off big time for states in Q2 2024, with 24 jurisdictions experiencing revenue growth and $3.73 billion in state taxes generated from gaming.
These gaming tax figures only capture specific state and local taxes that are explicitly linked to gaming revenue and are reported regularly (either monthly or quarterly).
