US Commercial Gaming Sector Sets Revenue Record in Q1

The U.S. Commercial Gaming industry keeps chugging along with the first quarter of 2024 setting a record and representing the 13th straight quarter of growth for the sector due, in part, to the popularity of our best sportsbooks.

According to the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker, the record quarter was buoyed by an exceptionally successful month of March, which came in as the second-best month ever for the national industry and contributed $6.09 billion toward the record three-month total.

The Q1 report also highlights the need to stay vigilant in promoting not only its platforms but also a responsible gaming focus going forward for our best sportsbook promos.

“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,” said AGA President and CEO Bill Miller. “Gaming’s continued growth relies on maintaining our commitment to innovation and responsibility.”

A peek at the numbers

Commercial gaming in America brought in a total of $17.67 billion in the first quarter of 2024 across our best sports betting sites. It represents a 5.6% year-over-year increase from the totals from Q1 of 2023 and barely beat out the previous revenue record of $17.64 billion set in Q3 of 2023.

Two of the most successful states in terms of commercial gaming, New York sports betting and Pennsylvania sports betting made up a combined $3 billion of the national total during the first quarter.They were among the 11 of 33 reporting states that had their best quarter ever through the first three months of this year.

America’s best sports betting apps and gaming sites, as well as the nation’s retail commercial gaming sector each saw increases in wagering activity in Q1 with retail gaming accounting for 70.7% of the total revenue figures and mobile gaming making up 29.3%. Mobile gaming had its largest share ever during the quarter and closed the gap on traditional brick-and-mortar casinos.

Deeper dive

The AGA report was able to break down the record numbers even further in its latest report.

Traditional brick-and-mortar casino gaming contributed $12.34 billion to the national commercial gaming total revenue figure for Q1. It's a slight 0.3% year-over-year increase in retail gaming revenues. The modest increase, according to the AGA report was “hampered by severe January weather in regional gaming markets nationwide.”

Legal sports betting was a huge contributor to the Q1 record results thanks to such events as the Super Bowl, March Madness and the Masters taking place during the three-month period. 

Sports wagering providers in the U.S. market accepted $36.86 billion in bets during the three-month period and generated $3.33 billion in revenue over that time. It is a 22% year-over-year increase in revenues, buoyed by new market launches during the quarter in Kentucky sports betting, Maine sports betting, North Carolina sports betting, and Vermont sports betting.

iGaming also had a good quarter according to the AGA. iGaming had its best quarter ever with $1.98 billion in gross revenues, which is a 26.1% year-over-year increase. The report highlighted the launch of a new iGaming market in Rhode Island sports betting in March.

Benefits

The AGA was able to identify the benefits of commercial gaming to participating states. It showed $14.67 billion in direct gaming tax revenue for the sector in 2023. That figure is a 9.7% year-over-year increase from the taxes collected from the industry in 2022.

“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.”