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Maintaining Momentum

The industry maintains record revenues despite economic challenges

Maintaining Momentum

As 2023 dawned, industry analysts and stakeholders grappled with a pressing question: Could the U.S. casino gaming sector maintain its momentum following two years of unprecedented revenue, particularly amid heightened economic uncertainties?

With the year drawing to a close, the response so far was a firm “yes.” With nationwide commercial gaming revenue reporting finalized through Q3 2023, the sector was poised for a remarkable third consecutive year of breaking revenue records.

Let’s take a look at the latest numbers to see what is driving gaming’s continued success.

Record Third-Quarter Revenue

According to the American Gaming Association’s Commercial Gaming Revenue Tracker, the third quarter saw combined revenue from land-based casinos, sports betting and iGaming reach $16.26 billion. This marks the industry’s highest-grossing third quarter ever, and the second-best single quarter of all time for commercial gaming revenue. Moreover, the total revenue for the first nine months of 2023 stood at $48.78 billion, reflecting a robust 10.1 percent increase compared to the same period in 2022.

Traditional Gaming Surges Forward

While much of the discussion around industry growth centers on the expansion of online verticals, traditional casino gaming is also seeing robust growth. Q3 2023 saw combined revenue from brick-and-mortar slots and table games hit an all-time high of $12.49 billion, reflecting a 1.8 percent year-over-year increase. Examining the first nine months of 2023, traditional revenue has climbed 3.1 percent nationwide compared to the same period in 2022, with 20 out of 27 states with traditional commercial gaming markets surpassing their 2022 performances.

Nevada and New Jersey Lead the Way

Among the 33 commercial gaming jurisdictions operational one year ago, five set new single-quarter records, including the country’s two largest commercial gaming markets: Nevada and New Jersey.

Propelled by a record-breaking quarter for Las Vegas Strip casinos of $741.2 million in revenue, Nevada gaming revenue grew 2.9 percent year-over-year, reaching $3.88 billion. Meanwhile, New Jersey’s highest-ever gaming win of $1.56 billion, up 8.6 percent year-over-year, came as the state saw new quarterly highs for both iGaming ($469.6 million) and sports betting ($268.2 million), while Atlantic City casinos experienced their second-best quarter ever for land-based slot machines and table games ($816.8 million).

New Markets Driving Sports Betting Growth

Sports wagering revenue reached $2.23 billion in Q3 2023, a 22.8 percent annual increase over the same period last year. Much of this growth comes from the $358.7 million in sportsbook winnings from markets that opened since Q3 2022 in Maryland (online expansion), Massachusetts, Nebraska (retail only) and Ohio. Excluding these new markets, however, Q3 2023 sports betting revenue remained up 7.2 percent year-over-year, representing continued growth among existing markets as well.

Through September, commercial sports betting remained on track for another record-setting year. Revenue for the vertical reached $7.2 billion through the first nine months, 52.9 percent higher than the same period last year and nearly matching the vertical’s full-year 2022 revenue of $7.18 billion.

iGaming Sees Record Quarter

The iGaming vertical continued its impressive trajectory, reporting $1.52 billion in third-quarter revenue—a remarkable 26 percent increase compared to Q3 2022 and a new single-quarter record. At the state level, Connecticut, New Jersey and Pennsylvania achieved new quarterly revenue records. With year-to-date revenue of $4.49 billion, iGaming is poised for another record year, demonstrating a robust 23.8 percent increase compared to the same period last year.

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