The inexorable momentum of the gaming industry seemingly has no end in sight.
The American Gaming Association Wednesday announced that its Commercial Gaming Revenue Tracker reported gaming industry revenue of $16.07 billion in the second quarter of 2023. It’s the tenth consecutive quarter in which gaming revenue has risen and is an 8.1% year-over-year increase.
The quarter also is the second-highest grossing ever in gaming, behind 2023’s first quarter total of $16.6 billion. The $32.71 billion in gaming revenue over first two quarters of 2023 also is a record for a half year, and is estimated to have generated $7.28 billion in tax revenue for state and local governments.
“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 and CEO Bill Miller in a statement.
The Commercial Gaming Revenue Tracker indicates the 12.9% growth rate of the first half of 2023 will generate the most gaming tax revenue ever.
Other breakouts from the report:
- Land-based gaming accounts for more than 75% of total commercial revenue, but year-over-year growth is driven by online sports betting and igaming.
- Second-quarter revenue from land-based slots, table games, and retail sports reached $12.38 billion, a year-over-year increase of 0.9%.
- Online gaming revenue was $3.68 billion for the quarter, an increase of 43.1% over the second quarter of 2022. This growth is attributed to the launch of mobile sports betting in Kansas, Maryland, Massachusetts and Ohio over the past year.
- Sports betting, both online and land-based, generated $2.3 billion in revenue, a record for any second quarter, and a year-over-year increase of 56.6%.
- Revenue from igaming was $1.48 billion, a tie with the first quarter of 2023 for the highest quarter ever and an increase of 22.5% over 2022’s second quarter.
“These results are a clear indication that our post-pandemic recovery wasn’t a fluke: the gaming sector continues to thrive, and when we do well, our communities do well,” Miller said. “To sustain this momentum, the AGA will continue enlisting more allies in our fight against the illegal market, bolstering responsible gaming, and building a business environment that allows our innovative industry to bring world-class entertainment to adults across America.”
