The third quarter of this year was the best-ever third quarter in the history of the US commercial gaming industry, taking in $16.17 billion, in compliance with numbers recently released by the American Gaming Association’s (AGA’s) Commercial Gaming Revenue Tracker. Additionally, that’s an overall increase of 6.1% compared to the previous year and marks the 11th direct quarter in a row of yearly profit increases.
The second-highest grossing commercial gaming quarter ever:
The aforementioned third quarter of this current year also represents the second-biggest quarter for commercial gaming ever, with the first being the first quarter of the same year. Regardless of early signs of a “slowdown” during the fourth quarter, the US industry is ready to experience a 3rd consecutive record year, advancing 9.9% from last September.
In this regard, commenting on the numbers, Bill Miller, AGA President and CEO, commented according to an official press release: “With growth across land-based and online gaming, we are delivering career opportunities for millions of Americans and strong economic contributions to communities across the country through increased tax revenue. Our sustained momentum reflects gaming as a first-choice entertainment option for millions of American adults.”
Influx of direct gaming taxes in Q3 2023:
The inflow of direct taxes for games of chance during the aforementioned third quarter was experienced by state and local governments in states that deal with games of chance. Additionally, commercial gaming firms paid approximately $3.43 billion in taxes directly related to gaming income, a growth of 4.7% over the previous year.
Moreover, the said industry’s income increased year-on-year in every vertical, with online gaming and land-based casino collecting “all-time quarterly records.” However, the pace of industry growth was slower for a second following quarter because of the harder comparisons over the former year.
Income generated from table games and traditional slot machines totaled $12.49 billion for Q3, a growth of 1.8% compared to the previous year, while online gaming generated $1.52 billion, which represents an increase of 26% over the former year.
Additionally, income generated from online sports wagering and in-person wagering also experienced an excellent Q3, with total combined income of $2.15 billion, an increase of 22.8% compared to the previous year. However, when it comes to this particular increase, it was highly affected by Massachusetts, Ohio, Maryland (online) and Nebraska, which weren’t operational during 2022. Also, a total of 35 states involving the District of Columbia have introduced operational regulated markets of commercial gaming that offered sports wagering, legal casino gaming and online gaming throughout the said quarter.
Furthermore, the vertical is placed for another record year with Americans betting $79 billion during the first 9 months of this year, further representing a 32.7% growth from 2022. On that note, Miller added: “Americans continue to migrate their action to the protections of legal, regulated sportsbooks in record numbers. This sustained demand only reinforces the need for federal and state enforcement against illegal, offshore operators.”
AGA’s Commercial Gaming Revenue Tracker offers insight into the financials of the US commercial gaming industry by state. Additionally, monthly updates on the AGA’s website AmericanGaming.org include headline numbers based on state income reports, and quarterly reports offer very detailed analysis of the former 3 months.
The AGA’s State of Play Map shows the economic impact of gaming, casino locations and industry regulation on a “state-by-state” basis for tribal gaming and commercial divisions.