The American Gaming Association has reported that the US commercial gaming industry had its best-ever third quarter this year, bringing in a total of $16.17 billion. This is a 6.1% increase from the previous year and marks the 11th consecutive quarter of yearly profit increases.
The third quarter of 2023 also represents the second-highest grossing commercial gaming quarter ever, following the first quarter of the same year. Despite early signs of a slowdown in the fourth quarter, the industry is expected to experience its third consecutive record year, with a 9.9% increase from last September.
Bill Miller, AGA President and CEO, responded to these numbers in an official press release, stating, “With growth across land-based and online gaming, we are delivering career opportunities for millions of Americans and strong economic contributions to communities across the country through increased tax revenue. Our sustained momentum reflects gaming as a first-choice entertainment option for millions of American adults.”
During the third quarter, state and local governments received approximately $3.43 billion in direct taxes from commercial gaming firms. The industry also saw an increase in income year-on-year in every vertical, with both online gaming and land-based casino collecting all-time quarterly records.
Income generated from table games and traditional slot machines totaled $12.49 billion for the third quarter, while online gaming brought in $1.52 billion, representing a 26% increase from the previous year. Additionally, income from online sports wagering and in-person wagering reached $2.15 billion, a 22.8% increase from the previous year.
The vertical is poised for another record year, with Americans betting $79 billion in the first nine months of 2023, a 32.7% increase from 2022. Miller noted, “Americans continue to migrate their action to the protections of legal, regulated sportsbooks in record numbers. This sustained demand only reinforces the need for federal and state enforcement against illegal, offshore operators.”
The AGA’s Commercial Gaming Revenue Tracker offers insight into the financials of the US commercial gaming industry, with monthly updates on the AGA’s website providing headline numbers based on state income reports. The quarterly reports also offer detailed analysis of the previous three months. The AGA’s State of Play Map shows the economic impact of gaming, casino locations, and industry regulation on a state-by-state basis for tribal gaming and commercial divisions.