Sports Betting Propels Record Revenues for American Gaming Association in Quarter 2

It is no longer surprising that the legal sports betting industry is experiencing significant growth in the U.S. market through top sportsbooks. This growth has led to 10 consecutive quarters of annual growth for the overall U.S. commercial gaming industry.

Last week, the American Gaming Association published its Quarter 2 revenue report, which included data from 34 states and the District of Columbia. Of those states, 23 saw an increase in their commercial gambling sector, resulting in a record revenue for Quarter 2, the highest ever seen in history.

Breaking down the numbers

According to the American Gaming Association Revenue Tracker, the U.S. commercial gaming industry set a new record for second-quarter revenues, generating $16.07 billion in Quarter 2.

In a statement, AGA CEO and president Bill Miller asserted that the positive results clearly show that our post-pandemic recovery was not a one-time success. The gaming sector is still flourishing, and our communities benefit when we succeed.

The three-month period saw a significant increase of 8.1% year-over-year, bringing in a total of $16.07 billion, making it the highest-earning Q2 ever for the American scene.

In AGA history, only Quarter 1 of 2023 has surpassed Quarter 2 in terms of revenue. The total commercial gaming revenues for the first half of this year have reached an impressive $32.71 billion, which marks an 11.9% increase compared to the first six months of 2022.

As previously noted, the overall industry has experienced annual growth for 10 consecutive quarters, including Q2.

Online gaming grows dramatically

The AGA’s top performer remained land-based casinos, which generated $12.38 billion in revenue from slots, table games, and retail sports betting, representing a 0.9% increase from the previous year’s second quarter.

The growth of online gaming, particularly in sports betting, drove the surge in revenues. In the second quarter, online gaming generated $3.68 billion in revenues, marking a 43.1% increase from the previous year. This growth was fueled by the introduction of legal online sports betting in Kansas, Maryland, Massachusetts, and Ohio, which alone brought in $247.1 million in revenues.

The sports betting industry experienced a 56.6% year-over-year growth, reaching a total of $2.3 billion in revenue for the quarter, setting a new record for Q2.

The first quarter of online casino gaming revenue matched the highest-grossing quarter ever recorded by the American Gaming Association, totaling $1.48 billion. This marked a significant 22.5% increase from the second quarter of 2022. States such as Connecticut, New Jersey, and West Virginia played a key role in setting the record for online casino revenues in the second quarter.

Everybody wins

The growth in gaming revenue has a positive impact on the areas where the platforms are located. According to the AGA report, in the second quarter, the United States collected $7.28 billion in taxes from gambling activities, benefiting state and local governments. This represents a 12.9% increase compared to the same period last year.

Miller stated that despite commercial gaming being on pace for a third straight year of record revenue, the significant impact on communities from this growth is what truly stands out.

Looking ahead

Legal gambling operators in the U.S. can expect record profits to continue as more states legalize sports betting and online gambling. The mainstreaming and acceptance of these platforms is currently at an all-time high.

Miller stated that in order to maintain the current progress, the AGA will keep recruiting additional supporters in the battle against the illegal market, strengthening responsible gaming practices, and creating a business environment that enables the innovative industry to provide top-notch entertainment to adults throughout America.