The American Gaming Association (AGA) has reported an impressive milestone for the U.S. commercial gaming sector, with revenues hitting $17.71 billion in the third quarter of 2024. This achievement marks the highest-grossing third quarter ever recorded, continuing a remarkable streak of 15 consecutive quarters of year-over-year growth. Additionally, September 2024 celebrated the 43rd consecutive month of increased commercial gaming revenues compared to the previous years.
Steady increase in annual gaming revenue:
Over the first nine months of 2024, the commercial gaming revenue across the nation reached an astounding $53.24 billion. This represents an 8.0 percent increase from the same period in 2023, setting the industry on a clear path to achieving its fourth consecutive record-breaking revenue year. Among the 35 jurisdictions with commercial gaming operations last year, 29 reported higher revenues year-over-year, further illustrating the sector’s robust growth.
The surge in gaming revenue in the U.S. has significantly benefited state and local economies, with an 8.9 percent increase in gaming-related taxes. Over the quarter, commercial gaming operators contributed a substantial $3.79 billion in taxes. This financial input supports various public services and infrastructure projects, underlining the gaming industry’s role in economic development.
Sector-Specific Performance Analysis
In terms of specific sectors within the industry, land-based gaming, which includes casino slots, table games, and retail sports betting, generated $12.56 billion in Q3 2024. This figure is slightly down by 0.62 percent from Q3 2023. Conversely, the combined revenues from online sports betting and iGaming stood at $5.14 billion for the quarter, accounting for 29.0 percent of the total commercial gaming revenue—a notable increase from the previous year.
Key Sectors Driving Growth:
- Traditional Gaming: Brick-and-mortar casino gaming still forms the backbone of the industry, with $12.38 billion in revenue this quarter, despite a slight decrease of 0.9 percent from the previous year.
- Legal Sports Betting: This sector saw a dramatic increase, with Americans legally wagering $30.3 billion on sports and generating $3.24 billion in revenue, up 42.4 percent year-over-year. New market entries in states like Kentucky, Maine, North Carolina, and Vermont have significantly contributed to this growth.
- iGaming: Online gaming continues to expand rapidly, with revenue hitting $2.08 billion this quarter, marking a 30.3 percent increase from last year.
AGA Vice President of Research David Forman remarked on the sector’s performance, stating in the company’s press release, “Q3 2024 continued gaming’s momentum from the first half of the year, with online casino and sports betting driving strong growth. At the same time, new brick-and-mortar casino openings bolstered traditional gaming, which still accounts for the bulk of industry revenue.” He added, “More than a quarter of commercial revenue now regularly comes from online sources, raising the importance of continued sustainable growth with consumers in those states.”
As the industry evolves, it continues to play a pivotal role in the U.S. economy, with 37 states and the District of Columbia featuring operational commercial gaming markets as of Q3 2024.