By
Jane Shaw
Senior Editor Updated: 11/27/2023
We count on Jane to inform our readers about the latest slot games in the US market. With her passion for video games and a degree in engineering, she’s our gambling tech expert. Jane’s also active in our blog section, where she tackles the curiosities and changes in the industry.
Commercial Casino Revenue at Record Levels
It was recently revealed that the third quarter of 2023 saw commercial casinos in the United States reach an unprecedented gross gaming revenue (GGR) of $16.17 billion. This impressive achievement represents a significant year-on-year increase of 6.1 percent, and data shows that it was the most lucrative quarter in the history of US gaming.
The American Gaming Association (AGA) released the figures, highlighting the 11th consecutive quarter of annual revenue growth. The GGR includes earnings from traditional brick-and-mortar casino slot machines and table games, as well as sectors like sports betting and iGaming. However, it does not include revenues from lotteries and tribal casinos.
AGA President and CEO Bill Miller spoke about the third quarter figures and addressed the popularity of gaming as an entertainment option for huge numbers of Americans. He said:
With growth across land-based and online gaming, we are delivering career opportunities for millions of Americans and strong economic contributions to communities across the country through increased tax revenue. Our sustained momentum reflects gaming as a first-choice entertainment option for millions of American adults.
The breakdown of the $16.2 billion revenue revealed that traditional retail slots generated the largest share at $8.98 billion, marking a 1.7 percent increase from the third quarter of 2022. Table games followed with a revenue of $2.64 billion, a 3.8 percent increase. However, the most significant growth was observed in the iGaming and sports betting sectors.
Online casinos in New Jersey, Pennsylvania, Connecticut, Delaware, West Virginia, and Michigan collectively generated a GGR of $1.52 billion in the third quarter, resulting in an impressive 26 percent surge compared to the same period in 2022.
Figures show that for the first three quarters of 2023, total commercial GGR stands at an impressive $48.69 billion, a 10 percent increase from the same period last year. Given these figures, it seems highly likely that the US commercial gaming industry will set a new annual GGR record in 2023, surpassing the previous record of $60.42 billion set in 2022.
This growth has been attributed not only to the booming online gaming and mobile sportsbook sectors but also to traditional gaming formats. Slot revenues saw a 3.8 percent increase, reaching $26.7 billion, while table game revenues climbed 2.3 percent to $7.6 billion.
The future outlook appears even more promising with the potential expansion of the industry. New casinos are expected to open in states like Virginia, Nebraska, and Illinois, which until recently did not allow legal gaming. These developments could significantly boost the industry’s revenues overall.
In terms of economic impact, the AGA reports that the commercial gaming industry has contributed approximately $10.68 billion in taxes to state and local governments, highlighting its role as a major player in the US economy.
This record-breaking quarter highlights the health and popularity of the US gaming industry and also shows a clear shift towards digital forms of gaming. The industry’s ability to adapt and innovate has been key to its huge success, according to industry officials.
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