In a remarkable streak of prosperity, March marked the 13th consecutive quarter of growth in U.S. gaming revenue, according to the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker. This tracker, which provides state-by-state and cumulative insights into the industry’s performance, utilizes detailed state revenue reports to offer a comprehensive look at how U.S. gaming is evolving.
The numbers are nothing short of staggering. In March alone, the industry raked in a colossal $6.1 billion, marking it as the second highest-grossing month in the history of U.S. gaming. This momentum is echoed in Q1’s figures, where 11 states set new quarterly revenue records. Prominent among these states are New York and Pennsylvania, two of the largest commercial gaming markets in the country.
The record-breaking trends extend to tax contributions as well. A staggering $14.7 billion was paid to state and local governments in tax contributions derived directly from gaming taxes in 2023, reflecting a 9.7% increase from the previous year. This impressive figure doesn’t even account for additional contributions from other forms of taxation such as income and sales taxes.
Bill Miller, the AGA’s president and chief executive, has shared optimistic projections for the future, indicating that 2024 will be a pivotal year for the U.S. market. “While gaming’s momentum remains strong, 2024 will be the new baseline for future growth after several years of sports betting legalization and post-pandemic consumer shifts,” Miller asserted. “Gaming’s continued growth relies on maintaining our commitment to innovation and responsibility.”
Adding more fuel to this upward trajectory, Rhode Island launched online gaming (igaming) in March, becoming the seventh state to do so. With Bally’s Corporation’s online casino going live, U.S. igaming posted a historic $2 billion in Q1, realizing a 26.1% year-on-year increase. The AGA identifies Rhode Island’s igaming launch as a significant contributor to these robust figures.
Notably, U.S. retail and online gaming both exhibited growth in Q1, albeit at somewhat slower rates compared to previous quarters. Retail gaming accounted for 70.7% of total Q1 revenue with a remarkable $12.3 billion, marking only a 0.3% year-on-year increase. The AGA attributes this marginal growth to adverse weather conditions early in the quarter. On the other hand, online gaming achieved its highest ever share of total revenue at 29.3%.
The enthusiasm for sports betting shows no signs of abating as Americans placed a record $36.9 billion in bets during Q1, generating $3.3 billion in quarterly revenue—a 22% increase from the previous year. New market launches in states such as North Carolina and Vermont significantly contributed to this upward trend.
“As gaming expands, more communities than ever are benefiting,” said Miller. “We are proud to create jobs across the country, provide world-class entertainment experiences that offer safe alternatives to the pervasive illegal gambling market, and generate tax revenue to support critical public projects.”
The AGA’s triumphant Q1 performance owes much to the achievements of several top-tier brands in the U.S. Take DraftKings, for instance, which reported a 52.7% year-on-year surge in revenue, amassing $1.2 billion compared to $769.7 million in the same quarter the previous year. This strong showing enabled DraftKings to revise its full-year guidance upward, now targeting revenue between $4.8 billion and $5 billion, up from an initial objective of $4.65 billion to $4.9 billion. Furthermore, the company has adjusted its EBITDA target to $460 million-$540 million, up from $410 million-$550 million.
Similarly, Flutter Entertainment-owned FanDuel achieved a commendable $1.4 billion in Q1 revenue, capturing a new record with a 27% market share in igaming gross gaming revenue. Peter Jackson, Flutter’s chief executive, remarked, “We have had an excellent start to the year. In the U.S., FanDuel’s top-line momentum is translating into strong growth in U.S. adjusted EBITDA and market share gains. We are focused on continuing to expand our player base, market share, and embedding future profits within our business through disciplined investment.”
As the U.S. gaming industry continues to set records and expand its footprint, the combination of market expansion, innovative strategies, and consumer shifts promise an intriguing future. The steadfast growth underscores how integral gaming has become not just as an entertainment avenue but as a significant contributor to economic and social infrastructures across the nation.
