U.S. commercial gaming revenue surpassed $16 billion in the second quarter of 2023, marking the 10th consecutive quarter of annual legal sports betting growth.
According to the American Gaming Association's Q2 2023 Commercial Gaming Revenue Report, total revenue increased 8.1% over the same period last year, marking a second-quarter record of $16.07 billion. Sports betting gross gaming revenue (GGR) went up by 58.5%, while slot and table game GGR grew by low single digits.
The revenue from online gaming spiked 43.1%, driven in part by the introduction of online sports betting sites in Kansas, Maryland, Massachusetts, and Ohio. Meanwhile, an estimated $7.28 billion in direct gaming tax revenue was generated for state and local governments throughout the first half of the year.
“While commercial gaming is on track for an unprecedented third consecutive year of record revenue, the lasting impact we’re making on our communities through this record growth is even more impressive,” said AGA President Bill Miller in a press release.
Traditional casinos challenged by online and geographic competitors
The AGA’s Commercial Gaming Revenue Tracker provides state-by-state commercial gaming data, comprising 34 states and the District of Columbia. Predictably, states with newly launched online gaming — like Massachusetts — were some of the country’s fastest revenue growers.
States with the Highest Q2 Revenue Increase:
States without an online sports betting or iGaming option tended to see slower growth, especially if they had to contend with new competition from border states. For instance, Mississippi — a state without a legalized online gambling option — had increased competition from Arkansas.
Mississippi’s northern casino region’s revenue was down more than 13% for the first half of 2023, while nearby Arkansas’ traditional casino revenue rose by more than 19%.
States with the Highest Q2 Decrease:
Nationwide, Americans bet $23.1 billion on sports in the second quarter, up 19.7% compared to the same time last year.
With a new NFL season now underway, this number is likely to jump in the third quarter. This should almost guarantee another consecutive quarter of annual commercial gaming revenue growth.
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