The American Gaming Association recently released a report that showed commercial gaming revenue, both retail and digital, increased by 10% from the previous year to over $66 billion in 2023.
Another Record Set
It was the third consecutive year in which commercial gaming in the United States showed an increase and set a new record. According to the data compiled by the American Gaming Association (AGA), revenues generated from iGaming, online and retail sports betting in the US, as well as land-based casinos added up to a staggering $66.52 billion in 2023.
Although the revenue report generated by the National Indian Gaming Commission won’t be released until later this year, the projections are that those receipts will add approximately $44 billion, bringing the grand total to $110 billion.
From the traditional casino experience to online options, American adults’ demand for gaming is at an all-time high,” said Bill Miller, the AGA’s president and CEO.
Big Numbers
December 2023 set a monthly revenue record of $6.22 billion, which was a 13.3% year-over-year increase while the fourth quarter revealed a 9.5% increase over Q4 2022, equaling $17.42 billion in revenues. Overall, approximately $14.42 billion in gaming taxes were collected in 2023, which was a 9.7% increase over the 2022 calendar year.
Sports betting revenue in 2023 soared 44.5% over the previous year with $10.92 billion in revenue. But that notable increase had much to do with five new markets opening up in 2023 with Kentucky, Maine, Massachusetts and Ohio launching online sports betting while Nebraska began permitting retail sports betting only.
Will iGaming Take Off in 2024?
Market expansion was not in play with iGaming in 2023 but that didn’t mean the revenue stagnated. Far from it, the six states that offer online casino gambling; New Jersey, Connecticut, Delaware, Pennsylvania, Michigan, and West Virginia combined for a 22.9% increase over 2022. But that number should rise again next year as Rhode Island is slated to launch iGaming in March.
There are currently 38 states and the District of Colombia that permit some form of sports betting, with 29 having launched the highly lucrative online version. That’s where the money is but it pales in comparison to online casino gambling, commonly known as iGaming.
States have been eager to hop aboard the online sports betting gravy train, but only six have ventured into the iGaming realm with many legislators believing the societal costs in terms of problem gambling would be exacerbated by having a casino in the palm of one’s hand.
Chris Krafcik, managing director of the Eilers & Krejcik gambling analytics firm, believes “only a very small number of states” will legalize iGaming by the end of 2027.
“Online casino has always been a tough sell,” Krafcik said.
Success Story
No state knows more about online casino gaming than New Jersey, as it was the Garden State that launched it in 2013.
“The volume of wagering, the interest from people, the excitement surrounding it as an entertainment option shows the power and reach of the internet,” said David Rebuck, Director of the New Jersey Division of Gaming Enforcement. “We were able to do it in a responsible, professional way that avoided embarrassment and scandal.”
As for what the future holds, iGaming will expand to other states but the rate of growth will not be nearly as viral as mobile sports betting. Rhode Island is slated to launch in March with several other states considering the prospect but not quite ready to pull the trigger.
