Americans not only like to gamble, but they are doing so in record numbers.
According to a report released Tuesday by the American Gaming Association, U.S. commercial gaming revenue reached $13.6 billion in the second quarter of 2021. That outpaced the previous high mark, $11.1 billion, that was set in the third quarter of 2019 and matched in this year’s first quarter, by more than 22%.
But during a conference call to discuss the report, AGA President and CEO Bill Miller said that while the numbers are encouraging, the gaming industry is still gaining its footing after the COVID-19 pandemic.
“The gaming industry is clearly on its way back,” Miller said, “and really in any other environment, these quarterly numbers would be a victory lap. But there are still a few missing pieces to the puzzle. Full recovery requires the meaningful return of meetings, business travel, and events, as well as the revival of international travel.”
Compared to a year ago, however, the turnaround is “truly remarkable,” Miller said. And the numbers also are impressive compared to 2019, prior to the COVID outbreak. The $13.6 billion not only represents a 492.7% increase year over year but a 26.3% increase from the second quarter of 2019.
The figures were generated by the AGA’s Commercial Gaming Revenue Tracker, which consolidates monthly state gaming revenue reports.
Brick-and-mortar casinos, most of which were closed during 2020’s second quarter, generated $11.8 million in the second quarter.
Sports betting revenue for the second quarter was $888.9 million, a whopping increase of 1,280% from 2020, and 643.2% over 2019’s second-quarter revenue. Total sports revenue for the first six months of 2021, $1.8 billion, already tops the $1.5 billion generated for the entire year in 2020.
The revenue report doesn’t include Tribal gaming revenue, which is subject to different reporting requirements and timelines.
“In the last few months, we’ve finally rounded a corner as an industry to a place where each vertical is now generating more revenue than prior to the start of the pandemic,” said AGA Senior Director, Research, David Forman during the call. “Barring any COVID-related setbacks over the next few months, we’re excited to see where this new baseline is going to take us.”
Forman noted that during the first six months of 2021, the nearly $25 billion generated by commercial gaming is almost the same amount of revenue produced for all of 2020 and is on pace to surpass the record $44 billion wagered in 2019.
While the figures are encouraging, Miller admitted that the delta variant of COVID could stop the gaming industry’s burgeoning revenue streams. But he touted the gaming industry’s leadership in fighting the pandemic.
“We’ve pivoted from mass testing sites to mass vaccination sites,” Miller said, noting that across 30 states, 130 commercial and Tribal casinos have served as COVID-19 vaccination clinics.
“I think because of our leadership on responsible reopening, we can continue to adapt to health and safety guidelines to align with community needs at the local, state and federal requirements as they change.”
And adaptability will be crucial going forward. Noting he was recently in Las Vegas for two trade shows and at the time, it was okay for those with vaccinations to go without masks. Since then, Nevada Gov. Steve Sisolak issued a mandate requiring masks while indoors.
“I’m not a good crystal ball gazer, but there may well be guidance that changes a couple more times between now and when we gather for our big trade show, G2E,” Miller said of the Global Gaming Expo, scheduled for Oct. 4-7 at the Sands Expo on the Vegas Strip. “My hope is that as vaccinations continue in this country, that travel restrictions will be lifted and as vaccinations continue globally, travel restrictions will be lifted.”
