The American Gaming Association (AGA)’s recent report reveals an impressive surge in the US gaming industry, with Americans contributing to a remarkable 33% increase from the previous year’s betting volumes, setting the stage for a record-breaking year in the gaming landscape. While some segments performed better than others, the sector’s success is indisputable.
The Sector Shows Little Signs of Slowing Down
October alone witnessed the US commercial gaming industry rake in a total revenue of $5.62 billion. This noteworthy achievement, encompassing traditional casino games, sports betting, and iGaming, marks a 5.9% increase from 2022. Remarkably, October became the industry’s 32nd consecutive month of year-over-year growth, securing its place as the third highest-grossing month in US gaming history.
The sustained growth momentum, however, exhibited a slight deceleration, predominantly attributed to the post-pandemic recovery normalization in the brick-and-mortar vertical. Despite this, the cumulative revenue through October stands at $54.40 billion, already surpassing the total revenue for 2021, which stood at $52.80 billion, marking 2023 on track to become the highest-grossing year on record.
October showcased an ongoing trend in revenue generation, with land-based gaming experiencing a marginal dip of 2.2% year-over-year, settling at $3.95 billion. In contrast, online gaming revenue surged impressively by 34.4% to $533.6 billion, predominantly propelled by the introduction of online sports betting in various states, including Kansas, Kentucky, Maryland, Massachusetts, and Ohio.
Sports Betting May Pass $100 Billion in Annual Handle
Sports betting also performed exceptionally well in October, setting a record for sports betting handle. Americans wagered a substantial $12.16 billion, a 25.5% increase compared to the same month in 2022. The sustained growth in sports betting is most evident by the year-to-date revenue standing at $8.33 billion, already surpassing the full-year revenue for 2022, which amounted to $7.18 billion.
With the impressive year-to-date handle reaching $91.98 billion, the sports wagering industry should confidently cross the $100 billion milestone in annual sports betting handle by year-end, barring a significant slowdown in November and December. However, this psychological barrier is just the beginning, as promising US jurisdictions like Florida, Texas, and California legalizing wagering may propel this figure to new heights.
The AGA’s report underscores a booming US gaming landscape, reflecting unprecedented growth and setting the stage for a landmark year in the industry’s history. The country’s regulatory complexities still present significant challenges for operators, especially those operating in multiple states. However, as more and more jurisdictions adopt regulated gambling, the figures in this report may soon pale in comparison.