Historic Revenue Milestones
The American Gaming Association (AGA) has unveiled that the U.S. commercial gaming sector achieved a record-setting performance with revenues soaring to $17.71 billion in the third quarter of 2024. This milestone surpasses the previous quarterly record and marks an impressive continuation of a 15-quarter streak of year-over-year growth. September 2024 notably stands out as the 43rd consecutive month showcasing a rise in commercial gaming revenues, a testament to the industry’s robustness and enduring appeal.
2024: A Year of Unprecedented Gains
In a detailed overview of the year’s performance, the first nine months of 2024 have collectively brought in an exceptional $53.24 billion in commercial gaming revenue, an 8% increase from the previous year. This consistent upward trajectory suggests that 2024 is well on its way to becoming the fourth consecutive year of record-breaking revenue figures. Notably, out of the 35 jurisdictions hosting commercial gaming operations, 29 have reported year-over-year revenue increases, underlining widespread growth across the sector.
Economic Contributions and Tax Benefits
The surge in gaming revenue has significantly benefited the local and state economies. Gaming-related taxes saw an 8.9% increase, with gaming operators contributing an impressive $3.79 billion in taxes during this quarter alone. These funds are crucial in supporting various public services and infrastructure projects, highlighting the gaming industry’s substantial contribution to economic development.
Analyzing Sector-Specific Performance
Despite a slight 0.62% decrease in land-based gaming revenue, which includes casino slots, table games, and retail sports betting, the sector generated $12.56 billion in the third quarter. Conversely, online platforms, including sports betting and iGaming, have seen a remarkable rise, collectively earning $5.14 billion and accounting for 29% of the total commercial gaming revenue.
Key Growth Drivers:
- Traditional Gaming: Brick-and-mortar casinos, despite a modest decline, still form the industry’s backbone with revenues of $12.38 billion.
- Legal Sports Betting: Experiencing a 42.4% jump from the previous year, this sector’s revenue was notably bolstered by market expansions in states like Kentucky and North Carolina.
- iGaming: Online gaming continues its rapid expansion, with revenues reaching $2.08 billion for the quarter, up by 30.3% from the previous year.
David Forman, AGA Vice President of Research, commented on the industry’s performance, stating, “The third quarter of 2024 continued to build on the strong momentum seen in the first half of the year, driven largely by online casino and sports betting. Meanwhile, new brick-and-mortar casino openings have fortified the traditional gaming sector, which remains a major contributor to overall industry revenue.”
