In a record-breaking year, America’s commercial casinos pocketed a staggering $66.5 billion from gamblers in 2023, as revealed in a recent report by the American Gaming Association (AGA). The total revenue marking a 10% rise from 2022, which itself was a record-setting year.
Booming Business Amid Inflation
Despite the ongoing inflation impacting grocery and energy costs, 2023 proved to be a lucrative year for the casino industry. The AGA predicts that when the revenue figures from tribal-owned casinos are released later this year, they will show that overall casino gambling contributed an impressive $110 billion to U.S. casino operators in 2023.
AGA’s president and CEO, Bill Miller, commented on this remarkable growth, “From the traditional casino experience to online options, American adults’ demand for gaming is at an all-time high.” He went on to explain how the industry thrived even amidst economic uncertainties, “As the year went on, inflation began to cool, consumers began to spend, and the (Federal Reserve) held rates steady. The result was a record-breaking year for our industry.”
A Closer Look at the Figures
Slot machines, the industry mainstay, raked in $35.51 billion in 2023, a 3.8% increase from the previous year. Table games followed closely, garnering $10.31 billion, a 3.5% rise. December alone saw casinos winning $6.2 billion, and the fourth quarter raked in an unprecedented $17.4 billion, both setting new records.
Sports betting emerged as a major revenue generator, contributing $10.92 billion, marking an impressive 44.5% increase. In total, Americans legally wagered $119.84 billion on sports, a 27.8% increase from the previous year. New sports betting markets in Kentucky, Maine, Massachusetts, Nebraska, and Ohio significantly contributed to this growth, generating a combined revenue of $1.49 billion.
Online Gambling on the Rise
Internet gambling also saw considerable growth, generating $6.17 billion, up by 22.9%. Michigan and New Jersey alone accounted for $1.92 billion each in annual internet gambling revenue, with Michigan slightly outperforming New Jersey by a mere $115,500, hence claiming the title of the largest internet gambling market in the country. Pennsylvania followed closely with $1.74 billion in annual revenue.
Overall, casinos contributed an estimated $14.42 billion in gambling taxes, a 9.7% increase from the previous year. Nevada remains the nation’s top gambling market, with an astounding $15.5 billion in revenue. Pennsylvania and Atlantic City followed, securing the second and third spots.
According to a report by NASDAQ, the year 2024 holds promising prospects for the casino industry, thanks to the increasing trend of online gambling and sports betting. The rise of digital platforms and the legalization of sports betting in more states are expected to drive further growth in the industry.
However, not all regions enjoyed this surge in revenue. Florida, Indiana, and Mississippi saw a decline in revenue by -0.4%, -2.3%, and -3.5% respectively. The sports betting-only market of Washington, D.C., reported the most significant decline, with revenue trailing 2022 by 17.6%, marking the largest drop in the country.
As the industry gears up for another potentially record-breaking year, it’s clear that America’s love affair with gambling, both online and in-person, shows no sign of slowing down.
