David Forman, Vice President of Research at the American Gaming Association, analyzes the gaming industry's results over the past few years and shares his views on the challenges the sector faces in the coming years.
Exclusive interview.- In February, the Commercial Gaming Revenue Tracker of the American Gaming Association (AGA) revealed that commercial gaming revenues reached a record annual figure of USD71.920 billion in 2024.
The total was 7.5 percent higher than the USD66.500 billion generated in 2023, marking the fourth year of growth for the industry.
To learn more about the extraordinary figures the sector has achieved in recent years, Focus Gaming News spoke with David Forman, Vice President of Research at the AGA.
What were the key factors that drove the revenue record in 2024 and do you expect this upward trend to continue?
2024 was a record year for commercial gaming revenues, reaching approximately USD72.000 billion. This represents an increase of nearly 8 percent compared to the previous year, which itself was a record. Taking into account tribal gaming revenues, for which we do not yet have exact figures, we anticipate that total gaming revenues in the U.S. will have been around USD115.000 billion in 2024.
Physical casinos continued to grow, albeit modestly, almost one percentage point, and continue to dominate the sector. However, much of last year's growth came from sports betting and online gaming. Although a new market opened in Rhode Island, even established markets like New Jersey, Pennsylvania, and Michigan continued to see significant growth.
Sports betting also expanded to new states, but even in those where it has been legal for some time, we continue to see strong organic growth. More and more consumers are getting interested in sports betting, and existing users are increasing their activity. Thus, while physical casinos remain the most important sector, digital gaming is driving a significant part of the growth.
How do you see the evolution of the balance between traditional gaming and online gaming? Is there any specific area where digital gaming is having a greater impact?
As sports betting and online gaming expand, they become a more significant part of the total commercial gaming revenues. Currently, they account for about 30 percent of the total gaming market. These options offer consumers greater accessibility: they don't have to visit a casino to place a sports bet; they can do it from their couch or at a bar with friends.
That said, millions of people continue to visit casinos, and an interesting trend we've observed since Covid-19 is the decrease in the average age of gamblers. Although some older players have not returned to the same level, younger ones have rediscovered casinos and are more engaged in in-person gaming. Innovations in games and the casino environment help keep in-person gaming relevant.
Now that more states are considering legalizing sports betting and online gaming, what regulatory trends or challenges do you foresee in the near future?
Sports betting is already legal in most states, but there are still some key states, such as Texas, California, and Oklahoma, where debates are ongoing. One of the main trends we expect to see is a continued debate on how to regulate and introduce sports betting in these remaining markets.
Public support for legalization is strong, and lawmakers in these states are working to determine the best way to structure their regulatory frameworks. I foresee these debates continuing this year and next, as states try to expand legal access to gaming.
Inflation and economic uncertainty have affected many industries. How resilient do you believe the gaming sector is to these external pressures?
Historically, gaming has held up quite well against economic trends. Although it is not completely immune, it has withstood well over time. Looking back, the only significant drop we've seen in gaming revenues was during the global financial crisis of 2008.
After the Covid-19 pandemic, there were fears that the end of stimulus payments, rising gasoline prices, and rising interest rates might affect consumer spending on gambling. However, none of these factors have significantly impacted demand. People continue to allocate a portion of their leisure budget to gaming, whether in casinos or online.
Blockchain is increasingly being discussed in the gaming sector, not only in the United States but around the world. How do you see its role in the continued growth of the sector?
Blockchain, cryptocurrencies, and artificial intelligence are areas of innovation that gaming companies are exploring. These technologies offer opportunities for digital payments, responsible gaming tools, and increased consumer trust.
Operators, whether online gaming platforms or physical casinos, are actively studying how to integrate these technologies to enhance user experience and operational efficiency.
Looking ahead, what do you think will be the biggest opportunities and challenges for the U.S. gaming sector in the coming years?
One of the biggest opportunities is the great public trust that the sector has earned over the years. In the United States, gaming enjoys broad public acceptance as a general form of entertainment, which is not always the case in other markets. The sector has worked hard to maintain this positive reputation.
However, challenges remain. Ongoing regulatory debates, ensuring responsible gaming, and adapting to technological advances will be key areas of focus. Additionally, as the market matures, maintaining the same level of growth will require innovation and diversification.
Considering that revenues have grown over the last four years, the future looks promising.
