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The commercial gaming industry in the United States has seen a 6% revenue growth in May 2023, reaching a total of $5.49 billion. This growth, as reported by the American Gaming Association (AGA), marks the 27th consecutive month of national growth.
However, the performance of state markets has started to diverge as the impact of past COVID concerns on annual comparisons has diminished.
The Driving Forces Behind the Growth
The primary drivers of this growth are the ongoing expansion and acceleration of online gaming. While land-based gaming revenue, which includes casino slots, table games, and retail sports betting, saw a slight decline of 0.6% compared to the previous year, online gaming revenue grew by a staggering 43.4% year-over-year.
The growth in online gaming revenue can be attributed to the introduction of online sports betting in Kansas, Maryland, Massachusetts, and Ohio within the past year, as well as the continued growth of iGaming in the six states where it is legal.
State-Level Performance
Out of the 33 commercial gaming jurisdictions operational last year, 24 reported annual revenue gains in May. Nine states, including Delaware, Florida, Iowa, Indiana, Louisiana, Missouri, Nevada, and Oregon, experienced declines in overall revenue. These declines were primarily due to slowdowns in the traditional casino segment and lower sports betting revenue.
Despite the nationwide deceleration of growth compared to digital offerings, traditional casino slot machines, and table games remain the dominant source of commercial gaming revenue. In May, these segments generated total revenue of $4.12 billion, a slight decrease of 0.3% compared to the previous year.
Record-Breaking Revenue from Sports Betting and iGaming
Sports betting and iGaming continued to expand, with both verticals reporting their highest-ever May revenue levels. Land-based and online sportsbooks collectively generated $864.1 million in commercial revenue across 28 jurisdictions. This marks an increase of 41.5% from May 2022.
The combined revenue from iGaming operations in Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia grew 22.4% year-over-year in May, reaching $497.4 million. All six markets reported annual iGaming revenue growth.
Looking Ahead
The commercial gaming industry in the US is on track to reach a new historic high, with revenue for the first five months of 2023 tracking 12.4% ahead of last year’s record-setting pace.
As the industry continues to evolve and adapt to changing market conditions, the focus is likely to remain on expanding online gaming offerings or bonuses and enhancing the player experience.
