US Commercial Gaming Industry Thrives in 2023, Setting Record Highs

The commercial gaming industry in the United States has experienced a remarkable surge in revenue, marking its third consecutive year of record-breaking financial success. According to the latest report from the American Gaming Association (AGA), the industry’s annual revenue reached an unprecedented $66.5 billion in 2023, surpassing the previous year’s high by a substantial margin.

AGA CEO Bill Miller Applauds Milestone Growth

The remarkable growth was highlighted by a record-breaking fourth quarter in 2023, with revenues soaring to $17.4 billion, further solidifying the industry’s position as a key contributor to the nation’s economy. December alone witnessed an astonishing $6.2 billion in revenue, marking the highest-grossing month in the history of the industry.

AGA President and CEO, Bill Miller, attributed this phenomenal success to the burgeoning demand for gaming among American adults. Miller emphasized that the industry’s ability to sustain this momentum would require collaborative efforts to combat illegal operators while simultaneously promoting responsible gambling initiatives. He stressed the AGA’s commitment to leading these efforts throughout 2024.

The evolution of the commercial gaming landscape was evident in the report, with online gaming emerging as a significant contributor, accounting for nearly a quarter or 24.7% of total commercial gaming revenue in 2023, reaching a new annual high. 

Gaming Revenue Booms Across Traditional Gambling, Sports Betting, and iGaming

Across multiple sectors, significant growth was evident. In traditional gaming, revenue from brick-and-mortar casinos surged to $49.4 billion, with a notable 19 out of 27 markets achieving record annual revenue. 

The sports betting sector experienced remarkable expansion, as total wagers peaked at $119.8 billion and revenue reached $10.9 billion, fueled by maturation in existing markets and entry into new territories like Massachusetts and Ohio. 

Meanwhile, iGaming saw a substantial uptick, with online casino revenue jumping by 22.9% to $6.2 billion in states with fully legalized online gaming.

The report also highlighted the geographic distribution of gaming revenue, with notable lodislot growth observed in various markets. The Las Vegas Strip emerged as the top-performing market, followed by New Jersey, Chicago metropolitan area, and the Mississippi Gulf Coast.

More:  Universal Entertainment Corporation eyeing New York casino license

Furthermore, the commercial gaming industry’s contributions to state and local governments reached unprecedented levels in 2023, with operators paying an estimated $14.4 billion in direct gaming revenue taxes—an increase of 9.7% compared to the previous year.

This influx of revenue plays a vital role in supporting critical public services, infrastructure projects, and education programs across the country.As the industry continues to thrive, Miller emphasized its role as an economic driver, creating jobs and providing essential funding for communities nationwide.