The industry of legal sports betting has reached new heights to start the fiscal year.
According to the American Gaming Association, U.S. commercial gaming generated a quarterly record of $16.6 billion in revenue in Q1 2023 — marking the eighth straight quarter of growth for the industry. The record results during the first quarter were spearheaded by a strong March, which saw revenue reach $5.9 billion — the industry’s highest-grossing month ever.
“After two full years of successive growth post-COVID, the U.S. gaming industry has never been stronger,” said 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.”
U.S. commercial gaming, which includes traditional casino games, iGaming, online sports betting sites, and retail wagering, reported quarterly revenue records for each vertical in Q1 2023.
Traditional casino gaming posted $12.3 billion in revenue in Q1 2023 — a 7% increase year-over-year. iGaming saw revenue reach $1.48 billion during the quarter, up 22.7% compared to Q1 2022. Legal sports betting generated a record $2.79 billion in revenue in Q1 2023 — a 70.1% increase year-over-year — behind a total betting handle of $31.1 billion. The growth was driven by the authorization of sports betting in Kansas, Massachusetts, and Ohio.
Since the U.S. Supreme Court allowed states outside of Nevada to offer sanctioned sports betting in 2019, there are more than 35 states, in addition to Washington, D.C., with wagering.
The only U.S. state to report an annual commercial gaming revenue decline in Q1 2023 was Mississippi, which generated $640 million in revenue — a 1.7% decrease year-over-year. Nevada led the U.S. with $3.82 billion in revenue while Pennsylvania finish second with $1.47 billion.
Ohio, which legalized sports betting on Jan. 1, emerged as the second-largest sports betting market in the U.S. in Q1 2023 with $387.3 million in revenue behind a $2.49 billion handle. The Buckeye State only trails New York, which has a population of 19.67 million as of July 2022.
The growing popularity of sports betting and gaming not only benefits sports fans but also their communities. In 2022, commercial gaming generated a record $13.48 billion in direct gaming tax revenue, which is allocated toward state and local governments. The revenue, which is a 15.3% increase compared to 2021, does not include contributions from sales or other taxes.
