Growing from strength to strength, the US commercial gambling revenue clocked in a record $16.07 billion in Q2, setting the bar high in its tenth consecutive quarter of growth the American Gaming Association (AGA) has recently reported.
Upping its revenue by 8.1% from Q2 of the previous year, statistics show that there’s been a 57% rise in iGaming in year-over-year, with lawmakers pushing to expand the industry within the US. Q2 of 2023 will go down in the books as the second-highest grossing quarter, only to be surpassed by Q1 of 2023, automatically making H1 of 2023 the industry’s official strongest half.
US Gaming Online Revenues Drive Success
Up by 12% of the same period last year, this year’s first six months have generated $32.71 billion in revenue. Additionally, US online casinos recorded a somewhat more prudent revenue increase of 22.5%, of $1.48bn, which is unarguably, still a fruitful gain.
A closer look reveals that the highest percentile rise was seen in sports betting that went up by 57%, grossing a revenue of $2.3 billion, while the iGaming gross gaming revenue (GGR) increased by 23% up to $1.4 billion. Slots also increased by 2% accounting for a GGR of $8.89 billion, while table games took a shallow dip in terms of GGR, coming in at $1.4 billion.
As a result of the industry’s formidable performance, there has also been an estimated $7.3 billion increase in tax revenue for both local and state governments in H1 of 2023. While land-based gambling still accounts for over 75% of the total growth this year, iGaming and sports betting continue to drive the industry to new heights year-over-year.
Lighter Sports Calendar Causes Betting Dip
As mentioned earlier on, this year land-based and online sports betting revenue clocked in at $2.3 billion, which marks a 57% year-on-year increase from 2022. However, it’s also worth keeping in mind that this year’s lighter sports betting calendar has clearly had an impact on the revenues for Q2 when compared to the previous quarter.
According to Ben Miller, President and CEO at AGA, reassured that post-pandemic numbers speak for themselves and iGaming in the US ‘continues to thrive’. He also noted that ‘when we do well, our communities do well,’ while explaining how the AGA plans to enlist additional allies in the constant battle against the black market and illegal gambling in the US.
Nevada for The Win
In terms of highest grossing states, Nevada comes in first place, generating $3.69 billion in revenue, while Pennsylvania and New Jersey come in second and third place, generating revenues of $1.42 billion and $1.39 billion respectively. Interestingly, while revenues in Nevada remained relevantly consistent year-over-year, Pennsylvania and New Jersey saw an increase of 8% and 11% respectively when compared to Q2 of 2022.
Mr. Miller went on to highlight that while the US gaming industry is on track for unprecedented record growth for the third year running, ‘the lasting impact we’re making on our communities is even more impressive.’