Posted on: May 16, 2023, 10:15h.
Last updated on: May 16, 2023, 10:20h.
Commercial casinos in the US won a record $16.6 billion in the first three months of 2023. It’s the best three-month revenue period ever for the country’s commercial gaming industry.
The American Gaming Association (AGA) reported Tuesday that Q1 2023 gross gaming revenue (GGR) for commercial interests was a record-breaking $16.6 billion. The period was highlighted by March, which saw revenue climb to $5.9 billion, the industry’s all-time best month.
After two full years of successive growth post-COVID, the US gaming industry has never been stronger,” commented AGA President and CEO Bill Miller. “With record growth across every gaming vertical — from brick-and-mortar casinos to mobile gaming — American adults continue to choose gaming as one of their top entertainment options.”
Brick-and-mortar gaming, often referred to as “traditional” or “legacy” gaming, generated the bulk of the Q1 revenue with $12.3 billion. That surpassed the land-based industry’s previous best quarter of $12.26 billion set in the third quarter last year.
Legal iGaming platforms in New Jersey, Pennsylvania, Michigan, Delaware, and West Virginia added nearly $1.5 billion. Licensed oddsmakers added $2.79 billion in quarterly revenue on more than $31.1 billion bet. Both sports betting figures are all-time quarterly highs.
Record Tax Benefit
Along with issuing its Q1 revenue tally, the AGA, the preeminent group in DC lobbying on behalf of the nation’s commercial and tribal gaming interests, unveiled its “State of the States 2023” report. In the comprehensive review, the AGA says the US gaming industry provided a record tax benefit last year for state governments.
Commercial gaming last year generated a record $13.48 billion in direct gaming taxes for state and local governments. That’s up 15% from 2021. The tax haul doesn’t include the billions more paid in income and sales taxes that the casinos are additionally subjected to.
“As one of the biggest taxpayers in states across the country, we know that when gaming is successful, so are our communities,” added Miller. “Beyond our significant tax contributions, our industry is engrained in local communities, bolstering economic development through job creation, supporting local charities and nonprofits, and setting the standard on corporate responsibility.”
The AGA says 34 states and the District of Columbia featured some form of commercial gaming during the first quarter of 2023.
Winning Streak
The US commercial gaming industry has now experienced eight consecutive quarters where total gross revenue eclipsed the previous record. The $16.6 billion in GGR won during the January through March timeframe easily topped the industry’s previous best quarter of $15.85 billion set in Q4 of 2022.
The heightened action is being experienced nationwide. The AGA said 18 of the 35 commercial gaming jurisdictions set new revenue records in the first quarter. Only one state, Mississippi, experienced reduced GGR from Q1 2022.
Though retail play continues to dominate the GGR landscape, the $12.3 billion in land-based win representing about 75% of the Q1 revenue, iGaming and online sportsbooks accounted for the remaining 25%. The AGA says it’s the largest market share ever for internet gaming.
