According to the American Gaming Association’s third-quarter report, bettors are wagering more than ever.
Tuesday the AGA reported revenue of $13.89 billion for the third quarter of 2021 through its Commercial Gaming Revenue Tracker, a new quarterly record. It’s the second consecutive quarter of record gaming revenue; the second quarter of 2021 generated $11.13 billion.
“Two straight quarters of record gaming revenue is an incredible accomplishment in any context, let alone after the most challenging year in industry history,” said AGA President and CEO Bill Miller in a statement. “Our recovery is not a flash in the pan, but rather a sustained result of our leadership in responsible reopening, world-class entertainment offerings and widespread favorability.
The first three quarters of 2021 have generated $38.67 billion in revenue, exceeding 2020’s total revenue of $30.0 billion. If that pace continues, the gaming industry could surpass the record revenue of $43.65 billion set in 2019.
Quarterly revenue in 10 of 25 states with commercial casinos topped quarterly revenue records, including Nevada, New Jersey, New York and Pennsylvania, the four highest-grossing commercial states in 2019.
The Las Vegas Strip also reached record revenue for the quarter at $2.06 billion. The Strip’s revenue was partially driven by an uptick in tourism; 9.2 million people visited Las Vegas during the third-quarter, a nearly 10% increase over 2021’s second quarter and the highest quarterly visitation level since the COVID-19 outbreak.
Jane Bokunewicz, director of the Lloyd Levenson Institute at New Jersey’s Stockton University, told Associated Press that pent-up demand among pandemic-weary customers played a big role in the industry’s resurgence as restrictions were lifted.
“After a year of restrictions and quarantines, people were anxious to get out and enjoy in-person experiences again,” she said. “The casino industry responded quickly to implement clean and safe protocols providing a welcoming environment to people seeking safe social activities.
“The explosive growth of internet gaming during the pandemic engaged a new audience of consumers who may have become curious about brick-and-mortar casinos and the in-person gaming experience,” she added. “Encouraged by casino marketing and loyalty programs they may have decided to try something new.”
Most of the third-quarter revenue came from slot and table games, which combined for $12.05 billion. Table game revenue, which suffered due to COVID-19 mandates and restrictions, reached $2.49 billion, beating the previous quarterly revenue record by 10%.
David Schwartz, a gambling historian at the University of Nevada Las Vegas, agreed that eagerness to get out and do things among gamblers who had been reluctant to visit casinos in Las Vegas or in their local regions is one factor driving the higher numbers.
Third-quarter revenue was boosted by record igaming revenue of $938.6 million. But sports betting revenue declined, with a 2021 quarterly low of $886.5 million that the AGA attributed to a limited end-of-summer sports calendar. But the combined sports betting and igaming revenue of $5.36 billion through 2021’s first nine months is a year-over-year increase of 200%.
“With brick-and-mortar gaming setting records, the expansion into new verticals, and domestic and international tourism recovering, the industry is in a strong position for a full recovery,” Miller said. “I’m confident that the return of meetings, conventions and international travel will further accelerate gaming’s recovery in 2022.”
