U.S. Commercial Casino Industry Saw $17.63 Billion In Q2 Revenue

The U.S. gaming industry continues seeing massive growth. The American Gaming Association (AGA) reported this week that the country’s commercial gaming revenue reached $17.63 billion for the second quarter, the industry’s 14th consecutive quarter of annual revenue growth and the highest-grossing second quarter performance on record.

The growth of sports betting continues to be a major driver for the industry, but other gaming options also contributed to the strong numbers. However, the report was mixed as concerns about the economy continue to grow.

“While sports betting and iGaming continued to drive overall industry revenue growth in the second quarter, new brick-and-mortar property openings in Illinois, Nebraska and Virginia also led to rising traditional commercial gaming revenue,” AGA Vice President of Research David Forman said. “Across the country, land-based gaming markets are seeing mixed year-over-year comparisons due to slower consumer spending economy-wide, which may continue to be a factor through the remainder of 2024.”

Inside The Numbers

Nationwide commercial gaming revenue provided $3.73 billion in state taxes. Both land-based (including brick-and-mortar sportsbooks) and online gaming saw annual growth for the quarter. Land-based properties saw slight growth, while the pace of online growth improved from the first quarter of 2024.

However, iGaming slowed significantly from nearly 44 % in 2023 to 32.5% in the second quarter of 2024.

Overall, land-based gaming accounted for 71.4% of total revenue with online gaming making up the remaining 28.6%. Here are some more key findings from the report:

• Traditional casino gaming generated quarterly revenue of $12.49 billion, up 1.8% year over year, with annual revenue gains in May and June buoying a slow beginning to the quarter in April.
• Americans wagered $31.75 billion on sports in the second quarter, generating $3.16 billion in quarterly revenue, up 35.3% from 2023. The growth was bolstered by new market launches in Kentucky, Maine, North Carolina, and Vermont since last spring.
• Online gaming grossed $1.97 billion in the second quarter, a 25.2% increase from 2023 but a slight decrease of 0.7% from the first quarter for the second straight year.

A Look At State Results

The AGA’s Commercial Gaming Revenue Tracker provides state-by-state and cumulative insight into the commercial gaming industry based on state revenue reports. The report found 37 states and the District of Columbia featured operational commercial gaming markets, including casino gaming, sports betting and iGaming.

Of the 33 commercial gaming jurisdictions with complete data available through June and that had operations last year, 24 increased second-quarter revenue compared to 2023.

On the other side of the coin, some states saw revenue declines. Oklahoma (-8.2%) contracted the most, driven by the closure of storm-damaged Will Rogers Downs in June, according to the AGA. Other markets with second quarter revenue declines were sports betting-only New Hampshire (-5.3%), as well as New Mexico (-4.6%), Mississippi (-2.3%), Massachusetts (-2.7%), Missouri (-1.9%), Rhode Island (-0.8%), Florida (-0.6%), and Iowa (-0.1%).

The report comes on the heels of record revenue in the tribal gaming sector in 2023 as well.

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