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The commercial gaming business in the United States continues to grow, with revenue reaching a remarkable $5.49 billion in May 2023, up 6% from the previous year. This was the 27th straight month of yearly national growth, according to figures published by the American Gaming Association (AGA). However, as the sector transitions towards a post-pandemic age, state market performance has begun to deviate from previous COVID-affected years.
Commercial gaming income increased 12.4% ahead of last year’s record pace in the first five months of 2023, hitting an astonishing total of $27.59 billion by the end of May. The industry is on track to set new record highs, demonstrating its resilience and ability to thrive in shifting conditions.
While the yearly growth rate remained strong in May, the rate of revenue growth has decreased marginally over the last four months. This move represents the elimination of COVID-related effects on year-over-year growth measurements, reflecting the industry’s transformation to a more steady and sustainable growth trajectory.
The amazing development and acceleration of online gaming was the primary driver of revenue growth in May. Land-based gaming revenue, which includes casino slots, table games, and retail sports betting, fell marginally (-0.6%) from the previous year. Online gaming, on the other hand, increased by 43.4% year on year. The legalization of online sports betting in various states, as well as the continued growth of iGaming in legalized jurisdictions, all played important roles in driving this excellent success.
In May of last year, 24 of the 33 operating commercial gambling jurisdictions reported annual revenue improvements. However, nine states saw overall revenue reductions, including Delaware, Florida, Iowa, Indiana, Louisiana, Missouri, Nevada, and Oregon. The traditional casino industry and decreasing sports betting revenue in some places were principally blamed for the slowdowns.
Traditional casino slot machines and table games continue to drive commercial gaming revenue. In May, these segments jointly generated $4.12 billion in revenue, a 0.3% decline from the prior year. Slot machine income increased by 1.3% to $2.98 billion, while table game revenue decreased by 4.8% to $834.3 million.
Sports betting and iGaming revenue continued to soar, with both reporting their highest May revenue levels ever. Land-based and online sportsbooks collected $864.1 million in commercial income across 28 jurisdictions, representing a spectacular 41.5% rise from May 2022.
In May, cumulative income from iGaming operations in Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia increased by 22.4% year on year to $497.4 million. Annual iGaming revenue increase was reported in all six markets, contributing to the industry’s sustained success.