US commercial gambling continues its upward trajectory, poised for a record-breaking year as it surged to a remarkable $16.3 billion in revenue during the third quarter.
This figure, unveiled by the American Gaming Association (AGA) in a report, showcases a 6.7% year-on-year increase in gambling revenue for the three months leading up to Sept. 30. Notably, this marks the 11th consecutive quarter of annual revenue growth and stands as the most prosperous third quarter in the country’s gambling history.
The surging popularity of sports betting nationwide has been a driving force behind the sustained growth in the US commercial gaming sector. The market segment has significantly contributed to propelling the industry to its most lucrative third quarter to date.
Legalized sports betting emerged as a powerhouse, generating a staggering $2.2 billion in revenue during Q3 of 2023. This marked a 27.7% rise when compared to the same period the previous year.
New Markets Responsible for Sports Betting Revenue Growth
This growth in revenue can be primarily linked to the expansion of sports betting into new markets such as Nebraska, Ohio, Massachusetts, and Maryland, which collectively added $358.7 million to the overall revenue in Q3. Over the first nine months of the 2023 fiscal year, sports betting amassed a total revenue of $7.1 billion.
Apart from sports betting, other verticals within the industry reported growth patterns. Slot gaming remained a dominant force, leading the US commercial gaming landscape with a revenue of $8.8 billion in the third quarter, up 1.7% when compared to the same period in 2022.
Meanwhile, table gaming revenue saw a slight 3.8% year-on-year upturn, amounting to $2.6 billion. The iGaming sector demonstrated a 26% growth compared to Q3 2022, closing at $1.5 billion in revenue.
The AGA’s comprehensive report analyzed data from 33 commercial gaming jurisdictions operational a year ago, where complete data was available through September. Among these, 17 jurisdictions witnessed an upsurge in third-quarter revenue compared to 2022.
The report revealed that five states, including Nevada and New Jersey — two of the nation’s largest commercial gaming markets — achieved new single-quarter revenue records, further fortifying the industry’s overall growth trajectory.
Gaming As America’s First Choice Entertainment Option
According to the AGA President and CEO, Bill Miller, who emphasized gaming’s pivotal role in the entertainment landscape, the industry continues to solidify its position as a leading entertainment choice among Americans.
Miller highlighted the profound impact of gaming on the nation’s economy, citing the creation of numerous career opportunities for millions of individuals and economic contributions benefiting communities nationwide through amplified tax revenue.
“We are delivering career opportunities for millions of Americans and strong economic contributions to communities across the country through increased tax revenue. Our sustained momentum reflects gaming as a first-choice entertainment option for millions of American adults,” Miller said.
“Americans continue to migrate their action to the protections of legal, regulated sportsbooks in record numbers. This sustained demand only reinforces the need for federal and state enforcement against illegal, offshore operators.”