Commercial US gaming revenue continued its slow growth during the first quarter of this year, but still managed to expand by a healthy margin compared to the same time last year. This according to data compiled by the American Gaming Association from state regulatory disclosures. The industry realized year-over-year growth across both land-based and online gaming, though at slower rates than in the recent past.
The numbers shows that combined US gaming revenue from commercially operated land-based casinos, sports betting and iGaming increased by 5.6% year-over-year, reaching nearly $17.7 billion for the first quarter. It was also the 13th consecutive quarter of year-over-year growth, as well as the highest-grossing quarter ever for the sector.
March was a particularly good month with the industry recording its second-highest revenue month ever at just north of $6 billion, which was an increase of nearly 2% from last year. However, December of 2023 still remains the highest-grossing month ever at $6.35 billion. Quarterly revenue from land-based casino slots, table games and retail sports betting came to $12.5 billion, just 0.1% higher than Q1 of 2023.
Meanwhile, online gaming and sports betting saw a deceleration in annual revenue gains from 39.6% in Q4 to 19.3% in Q1. Still, the combined revenue from online sports betting and iGaming reached a new quarterly high at $5.16 billion. Online gaming made up a nearly 30% share of revenue in Q1, during which time the industry welcomed two new online sports betting markets in Vermont and North Carolina.
State and local governments in gaming states saw a record influx of direct gaming taxes in the first quarter. Commercial gaming operators paid an estimated $3.80 billion in taxes tied directly to gaming revenue, an increase of 4.4 percent year-over-year. The AGA tracks US gaming revenue on a regular basis using the Commercial Gaming Revenue Tracker on their website.