According to the American Gaming Association (AGA) Commercial Gaming Revenue Tracker, the U.S. commercial gaming industry has set a new milestone, with revenues reaching $17.63 billion in the second quarter of 2024. This performance represents the 14th consecutive quarter of year-over-year growth, setting a new high for second-quarter earnings.
Diversified growth in the gaming vertical:
Gaming revenue growth was widespread across the country, with 24 jurisdictions showing increases compared to the previous year. Overall commercial gaming revenue contributed significantly to state governments, generating $3.73 billion in direct state taxes.
After detailed segmentation of each industry, both traditional physical gaming venues (including physical sports betting) and online platforms showed positive growth trajectories. However, physical gaming still dominates the market, accounting for 71.4% of total revenue, while online gaming accounts for the remaining 28.6%. Notably, the growth rate of online gaming has slowed down, from nearly 44% in the same period last year to 32.5% this year.
The physical casino industry grew modestly by 1.8% year-over-year, with revenues reaching $12.49 billion. This was due to strong performance in the latter half of the quarter.
The sports betting sector saw significant growth, with Americans wagering a total of $31.75 billion. This activity generated $3.16 billion in revenue this quarter, up 35.3% from last year, thanks to the launch of new markets in states like Kentucky, Maine, North Carolina, and Vermont.
iGaming also achieved remarkable growth, reaching a record revenue of $1.98 billion, up 26.1% year-over-year, mainly due to Rhode Island's market debut in March.
AGA Vice President of Research David Forman commented: "While sports betting and iGaming continue to drive overall industry revenue growth in the second quarter, new physical gaming venues in Illinois, Nebraska, and Virginia also contributed to the growth of traditional commercial gaming revenue. Nationwide, due to a slowdown in consumer spending across the economy, the physical gaming market's year-over-year performance was mixed, which could continue to be a factor for the remainder of 2024."
Economic impact and industry analysis:
The AGA's Commercial Gaming Revenue Tracker provides comprehensive data, offering interstate and cumulative insights based on revenue reports from various states, covering 37 states and the District of Columbia, all of which have operational commercial gaming markets as of the first quarter of 2024.
The American Gaming Association also assesses the economic impact of the gaming industry, regulatory frameworks, and casino locations through its "State of Play Map," covering both commercial and tribal gaming sectors.
As the national trade organization representing the U.S. gaming industry, the American Gaming Association plays a crucial role in creating a regulatory and business environment conducive to legal, regulated gaming. AGA members come from various sectors, including commercial and tribal casino operators, sports betting and online gaming entities, and gaming suppliers, leading an industry that contributes $329 billion to the economy and provides 1.8 million jobs nationwide.
