Americans interest in gambling shows no sign of slowing down. Expanded sports betting, more legal jurisdictions, and the growth of online gaming brought record commercial gaming revenue of $66.5 billion in 2023, according to the American Gaming Association’s (AGA) “Commercial Gaming Revenue Tracker.”
That total topped 2022’s previous record of $60.5 billion by 10 percent, and 2023 was the industry’s third-straight record revenue year.
“From the traditional casino experience to online options, American adults’ demand for gaming is at an all-time high,” AGA President and CEO Bill Miller said. “Sustaining our momentum will take unified industry efforts around combating pernicious illegal operators and growing responsible gambling efforts in tandem with the growth of the legal market – both of which the AGA is committed to lead on throughout 2024.”
Industry Continues To Grow
A look at the fourth quarter numbers offers even more of a positive note for the industry, reaching an all-time quarterly revenue record of $17.4 billion. December was especially big at $6.2 billion, the highest grossing month in industry history.
It’s also important to note that these numbers are for the commercial casino industry only and do not include tribal gaming revenues, which aren’t yet available.
The AGA notes that commercial gaming continues to evolve, and online gaming (including mobile sports betting) made up nearly one-quarter (24.7%) of nationwide commercial gaming revenue in 2023, also a new record high. Here’s a look at each gaming sector:
- Traditional gaming – Slots and table games grossed a record $49.4 billion in 2023, up 3.3% from 2022. On a state level, 19 of 27 traditional gaming markets saw record annual revenue.
- Sports betting – In 2023, sports betting achieved new for handle ($119.8 billion, up 27.8%) and sportsbook revenue ($10.9 billion, up 44.5%). “Continued maturation across most existing markets” and the addition of new markets contributed to that, particularly in Massachusetts and Ohio.
- iGaming – Online casino revenue grew 22.9% from 2022 to $6.2 billion in the six states with legal online gaming. Several other states are also now considering online gaming, including poker, as well.
A Look At Top Markets
At the state level, 12 of the top 20 casino gaming markets reported revenue growth compared to the previous year. The Las Vegas Strip saw the strongest year-over-year gains, although one recent report noted that overall Strip profits fell.
New Jersey again was the second-highest grossing market with the Chicagoland area moving into third after flipped positions with Baltimore/Washington, D.C. The Mississippi Gulf Coast rounded out the top five.
Additionally, the industry contributed more to state and local governments than ever in 2023. That included an estimated $14.4 billion in direct gaming revenue taxes, an increase of 9.7% year over year. The industry also pays billions of additional tax dollars to states each year in the form of income, sales, payroll, and various other corporate taxes.
“Gaming’s success translates directly to the success of the states, cities and towns in which we operate,” Miller said. “We are proud to be in 47 U.S. jurisdictions, acting as economic drivers, creating jobs and providing the funding that makes critical public education programs, infrastructure projects, problem gambling resources and more possible.”