US gaming revenue sets new quarterly high, topping US$16bn in Q1 2023

The United States commercial gaming industry showed no signs of slowing down in the first quarter of 2023, with gaming revenue growing at an annual rate of 15.5%, according to the American Gaming Association (AGA).

“After two full years of successive growth post-COVID, the U.S. gaming industry has never been stronger,” said AGA President and CEO Bill Miller. “With record growth across every gaming vertical—from brick-and-mortar casinos to mobile gaming—American adults continue to choose gaming as one of their top entertainment options.”

Commercial Gaming Revenue Tracker highlights

Across the country, 18 of 35 commercial gaming markets set new revenue records for the quarter, with only Mississippi trailing its quarterly revenue from Q1 2022.

Every commercial gaming vertical saw quarterly revenue records in Q1 2023. Retail gaming accounted for 75.3% of total revenue while online gaming represented its largest share ever, 24.7%. Looking further at each sector:

• Traditional Gaming: Traditional brick-and-mortar casino gaming generated quarterly revenue of US$12.3 billion, surpassing the previous high of US$12.26 billion in Q3 2022.
• Legal Sports Betting: Nationwide, Americans wagered a record US$31.11 billion on sports in Q1 2023, generating an all-time high of US$2.79 billion in quarterly revenue (+70.1% year-over-year). The growth compared to Q1 2022 was largely driven by new market launches in Kansas, Massachusetts and Ohio.
  iGaming: iGaming grossed US$1.48 billion in Q1 2023, marking a 22.7% year-over-year revenue increase.

State of the States 2023

The AGA released its annual State of the States report, which provides the definitive state-by-state economic and regulatory analysis of U.S. commercial gaming in 2022 for policymakers, gaming stakeholders and industry observers.

State of the States 2023 reveals that commercial gaming generated a record US$13.48 billion in direct gaming tax revenue paid to state and local governments in 2022, up 15.3% from 2021. This does not include the billions more paid in income, sales or other taxes.

“As one of the biggest taxpayers in states across the country, we know that when gaming is successful, so are our communities,” added Miller.

“Beyond our significant tax contributions, our industry is engrained in local communities, bolstering economic development through job creation, supporting local charities and nonprofits, and setting the standard on corporate responsibility,” AGA’s CEO concluded.

Source: GMB