According to the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker, U.S. commercial gaming revenue hit a quarterly record of $17.67 billion in Q1 2024, marking the industry’s 13th consecutive quarter of growth. March alone saw revenue of $6.09 billion, making it the second-highest-grossing month in the industry’s history.

“While gaming’s momentum remains strong, 2024 will be the new baseline for future growth after several years of sports betting legalization and post-pandemic consumer shifts,” said AGA President and CEO Bill Miller. “Gaming’s continued growth relies on maintaining our commitment to innovation and responsibility.”

Commercial Gaming Revenue Tracker Highlights

Across the nation, 11 state gaming markets, including Pennsylvania and New York, two of the largest commercial gaming markets in the U.S., established new quarterly revenue records. In Q1 2024, retail and online gaming experienced annual growth, though slower than in previous quarters. Retail gaming comprised 70.7 % of total revenue, while online gaming achieved its highest share at 29.3 %. Here’s a closer look at each sector:

Traditional brick-and-mortar casinos generated quarterly revenue of $12.34 billion, representing a modest year-over-year increase of 0.3 %. This increase was impacted by severe weather conditions in regional gaming markets during January.

Out of the 33 operational commercial gaming jurisdictions with complete data available through March, 23 reported an increase in first-quarter revenue compared to 2023. Notably, 11 states, including Pennsylvania and New York, set new revenue records for a quarter.

Among markets that experienced year-over-year declines in quarterly revenue, sports betting-only markets such as Washington, D.C. (down 9.5 %), New Hampshire (down 10.3 %), and Montana (down 34.9 %) saw the most significant drops. In contrast, more diversified and traditional gaming markets like Iowa (down 2 %), Mississippi (down 2.1 %), Indiana (down 2.1 %), Rhode Island (down 3.3 %), Missouri (down 4 %), and New Mexico (down 4.1 %) reported smaller revenue decreases.

Ohio stood out as a notable exception, experiencing a 16 % contraction due to a sharp 37.1 % decline in sports betting spending. This drop was largely attributed to tough comparisons with Q1 of the previous year when sports betting launched and revenue totals benefited from significant promotional spending in the new market.

In March, casino slot machines and table games generated an all-time monthly revenue record of $4.46 billion, marking a 2.7% year-over-year increase and surpassing the previous high of $4.40 billion set in July 2023. Bonuses like NJ Casino Promotions have played a significant role in driving interest and participation in both retail and online gaming, further contributing to these impressive numbers.

The overall growth in traditional casino gaming was driven by increased table game revenue, which offset a slight decline in slot machine revenue. Nationwide, casino slot machines generated $8.86 billion in Q1, down 0.1 % from the previous year, while table games achieved $2.58 billion, representing a 3 % year-over-year increase. The separate slot and table game figures do not include data from Louisiana and Michigan, where traditional casino gaming data is reported in aggregate.

At the state level, 15 out of 27 states saw traditional casino gaming revenue decrease yearly by as much as 6.1 %. Illinois, Nebraska, and Virginia were among the 12 states that experienced annual growth, collectively opening seven new casinos since the start of Q1 2023, significantly contributing to their overall growth in traditional casino gaming revenue.

In sports betting, Americans placed a record $36.86 billion in wagers during Q1, generating $3.33 billion in quarterly revenue—up 22 % year-over-year. New market launches in Kentucky, Maine, North Carolina, and Vermont partly drove this growth. Meanwhile, iGaming grossed an all-time high of $1.98 billion in Q1, a 26.1 % year-over-year increase, bolstered by the launch of Rhode Island’s iGaming market in March.

The AGA also released its annual State of the States report today. This report provides a comprehensive state-by-state economic and regulatory analysis of U.S. commercial gaming in 2023 for policymakers, gaming stakeholders, and industry observers.

The State of the States 2024 report highlights a record $14.67 billion direct gaming tax revenue paid to state and local governments by commercial gaming operators in 2023, an increase of 9.7 % from 2022. This figure does not include the billions more collected in income, sales, and other taxes.

“As gaming expands, more communities than ever are benefiting,” continued Mr. Miller. “We are proud to create jobs across the country, provide world-class entertainment experiences that offer safe alternatives to the pervasive illegal gambling market, and generate tax revenue to support critical public projects.”

Final Words

The U.S. commercial gaming industry demonstrated remarkable resilience and growth in Q1 2024, achieving record revenue of $17.67 billion and marking 13 consecutive quarters of expansion. The strong performance across various sectors, including retail and online gaming, underscores the industry’s ability to adapt to changing consumer preferences and regulatory landscapes.

Despite some market challenges, particularly in sports betting, the overall trend indicates a robust future driven by innovation and responsible practices. Shortly, the numbers are most likely to increase as betting generally gets more legal standing in the US.