Q3 2023 Commercial Gaming Revenue Reaches $16.17B, Marking Industry’s Highest-Grossing Third Quarter

Year-Over-Year Revenue Up Across All Verticals, Pace of Annual Growth Slows

Washington, D.C. (November 16, 2023) – Q3 2023 marked the U.S. commercial gaming industry’s best third quarter on record, generating $16.17 billion, according to the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker. The total is up 6.1 percent year-over-year and represents the 11^th straight quarter of annual revenue growth.

Q3 2023 also marks the second-highest grossing commercial gaming quarter of all-time, behind Q1 2023. Despite early indicators of a slowdown in the fourth quarter, the industry is poised for a third straight record year, pacing 9.9 percent ahead of 2022 through September.

“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,” said AGA President and CEO Bill Miller. “Our sustained momentum reflects gaming as a first-choice entertainment option for millions of American adults.”

State and local governments in gaming states saw an influx of direct gaming taxes in the third quarter. Commercial gaming operators paid an estimated $3.43 billion in taxes tied directly to gaming revenue, an increase of 4.7 percent year-over-year.

Industry revenue grew year-over-year across all verticals in Q3 2023, with both land-based casino and iGaming generating all-time quarterly records. As expected, the industry’s pace of growth slowed for a second consecutive quarter due to tougher year-over-year comparisons.

Combined traditional slot machine and table game revenue reached $12.49 billion for the quarter, up 1.8 percent year-over-year, while iGaming grossed $1.52 billion, up 26 percent year-over-year.

Combined in-person and online sports betting also recorded a strong quarter, with revenue up 22.8% percent year-over-year to $2.15 billion. This growth was mostly driven by Maryland (online), Massachusetts, Nebraska and Ohio – states that were not operational a year ago. The vertical is set for a new record year with Americans wagering $79 billion through the first nine months of 2023, a 32.7 percent increase from last year.

“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,” added Miller.

Background

• AGA’s Commercial Gaming Revenue Tracker provides state-by-state and cumulative insight into the U.S. commercial gaming industry’s financial performance based on state revenue reports. This issue highlights Q3 2023 results.
• 35 states and the District of Columbia featured operational commercial gaming markets in Q3 2023 with legal casino gaming, sports betting or iGaming.
• AGA’s State of Play Map charts gaming’s economic impact, industry regulations and casino locations on a state-by-state basis for both the commercial and tribal gaming sectors.

About the AGA
As the national trade group representing the U.S. casino industry, the American Gaming Association (AGA) fosters a policy and business environment where legal, regulated gaming thrives. The AGA’s diverse membership of commercial and tribal casino operators, sports betting and iGaming companies, gaming suppliers, and more lead the $261 billion industry and support 1.8 million jobs across the country.

SOURCE: American Gaming Association (AGA).