The gaming industry seems to be taking its cue from U.S. Postal Service’s unofficial motto, “Neither snow nor rain nor heat nor gloom of night stays these couriers from the swift completion of their appointed rounds.”
Neither inflation, supply chain issues or coronavirus flares seem to stall gaming industry revenue from setting new records.
In its 2022 first-quarter report, the American Gaming Association’s Commercial Gaming Revenue Tracker reported gaming revenue of $14.31 billion, a record for any first-quarter. The total nearly matches the record for a single quarter, $14.35 billion, set in the fourth quarter of 2021.
“Consumers continue to seek out gaming’s entertainment options in record numbers,” said AGA President and CEO Bill Miller in a statement. “Q1’s strong results build on the industry’s record year in 2021 despite continued headwinds from supply chain constraints, labor shortages, and the impact of soaring inflation.”
The 2022 first-quarter revenue is a year-over-year increase of 29%. Out of the 34 U.S. commercial gaming jurisdictions, 32 reported increases in first-quarter revenue, with three states setting quarterly records: Arkansas ($147.4 million), Florida ($182.0 million) and New York ($996.6 million).
Sports betting and igaming revenue notably increased during the quarter. Sports betting generated revenue of $1.58 billion, a jump of 64.6% compared to the first-quarter of 2021. Despite being legal in just four states — Nevada, Delaware, New Jersey, and Pennsylvania – igaming revenue reached $1.21 billion, a year-over-year increase of 53.9%.
“Four years post-PASPA (the Professional and Amateur Sports Protection Act), legal sports betting’s success is proving what we’ve known all along: American consumers are eager to wager within the protections of the regulated market,” Miller said. “It also reinforces the need to stamp out offshore, illegal operators who prey on vulnerable customers.”
The AGA also released its State of the States report, a recap of the gaming industry’s revenue in 2021. As previously reported, commercial gaming revenue reached a record $53.03 billion, a 21.5% increase from the previous high in 2019. Commercial gaming operations generated $11.69 billion in direct gaming tax revenue paid to state and local government, a 75% increase over 2020 and 15% from 2019.
The State of the States reports also lists the Top 10 commercial gaming markets for the year: (1) Las Vegas Strip, (2) Atlantic City, (3) Chicagoland, (4) Baltimore-Washington D.C., (5) Gulf Coast, (6) New York City, (7) Philadelphia, (8) Detroit, (9) St. Louis and (10) Boulder Strip.
“Our industry’s success goes beyond the bottom line and into communities across the country,” Miller said. “The record state and local tax contributions fund vital services from infrastructure and education to healthcare and emergency services.”