US gaming revenue hits $66.5bn in 2023, marking third year of record growth
AGA reports US gaming industry recorded its best ever financial results as sports betting revenue nears $11bn and igaming continues to grow
The US regulated gaming industry saw total annual revenue reach a total of $66.5bn for 2023, a 10% increase on 2022’s $60.5bn, according to the latest data from the American Gaming Association (AGA).
The revenue figure, which encompasses land-based casino games, sports betting and igaming, saw the US gaming industry surpass its own revenue record for the third consecutive year.
December 2023 recorded the highest grossing month in the gaming industry’s history, with $6.2bn in revenue, in turn helping to produce an all-time high quarterly income of $17.4bn for the last three months of the year.
Sports betting revenue in the US soared 44.5% from $7.6bn to $10.9bn, with Americans legally wagering $119.8bn on sports during 2023, an increase of 27.8%.
The AGA said the slower increase in handle relative to revenue growth was due to a 9.1% national hold percentage, up from 8.1% in 2022.
The trade body also revealed Q4 revenue for sports betting landed at $3.4bn, up 30.8% compared to Q4 2022. A record $40bn was noted in handle for the last three months of the year.
Five new states launched sports betting in 2023 – Kentucky, Maine, Massachusetts, Nebraska, and Ohio – that combined delivered $1.5bn in revenue.
New York retained its leading sports betting position after returning $1.7bn in revenue, up 24.2%, with neighboring New Jersey just breaching the $1bn barrier.
Illinois slipped two places to third in the rankings despite a 26.1% jump in revenue, with the Prairie State also breaking the $1bn revenue mark.
Elsewhere, igaming, which is currently restricted to just six states: New Jersey, Pennsylvania, Connecticut, Delaware, Michigan, and West Virginia, was a significant contributor to the figure, generating revenue of $6.2bn in 2023.
This itself was a 22.9% year-on-year increase, accounting for 24.7% of total US commercial gaming revenue in a new annual high.
Michigan and New Jersey were the two leading states for online gaming revenue, with each generating $1.92bn in 2023.
Michigan performed slightly better than the Garden State, bringing home $115,500 extra, making it the largest online casino market in the US. Pennsylvania came a close third having made $1.74bn in revenue.
The gaming industry also made its greatest combined contribution to state and local governments’ coffers in 2023.
Across the year, operators paid a projected $14.4bn in taxes funded directly from gaming revenue, marking an increase of 9.7% year over year.
AGA president and CEO Bill Miller said: “From the traditional casino experience to online options, American adults’ demand for gaming is at an all-time high. Sustaining our momentum will take unified industry efforts around combating pernicious illegal operators and growing responsible gambling efforts in tandem with the growth of the legal market.”