Eventually, gaming industry revenue will plateau. But for now, revenue increases show no sign of abating.
The American Gaming Association Tuesday reported revenue of $16.6 billion for the first quarter of 2023 per its Commercial Gaming Revenue Tracker. It’s the eighth consecutive quarter gaming industry revenue has set a record.
“After two full years of successive growth post-COVID, the U.S. gaming industry has never been stronger,” said AGA President and CEO Bill Miller in a statement. “With records across every gaming vertical—from brick-and-mortar casinos to mobile gaming—American adults continue to choose gaming as one of their top entertainment options.”
The AGA stated that 18 of 35 commercial gaming markets set new revenue records in the first quarter. Only Mississippi lagged behind its year-over-year total.
Gaming verticals also set new quarterly records, with retail gaming accounting for 75.3% of total revenue, and igaming bringing in 24.7%, its largest percentage ever. Brick-and-mortar gaming revenue was responsible for $12.3 billion of the $16.6 billion.
Sports betting also continues its upward ascent. Bettors wagered $31.1 billion through legal sports betting outlets, generating another record of $2.79 billion in revenue for the quarter. And igaming grossed $1.48 billion for the quarter, a year-over-year increase of 22.7%.
The gaming industry revenue also generated $13.5 billion in tax revenue for state and local governments in 2022, a 15.3% increase over 2021. That total does not include monies paid through income, sales, and other taxes.
“As one of the biggest taxpayers in states across the country, we know that when gaming is successful, so are our communities,” Miller said. “Beyond our significant tax contributions, our industry is engrained in local communities, bolstering economic development through job creation, supporting local charities and nonprofits, and setting the standard on corporate responsibility.”
