American Gaming Association Q2 2024 Commercial Gaming Revenue Tracker

The AGA’s Commercial Gaming Revenue Tracker provides national and state level insights into the U.S. commercial gaming industry’s financial performance based on state regulatory reports. Read the highlights for the second quarter of 2024 below.

Commercial Gaming Revenue Tracker

Commercial Gaming Revenue Growth Accelerates in Q2

U.S. commercial gaming revenue growth accelerated in the second quarter, driven by continued growth in sports betting and iGaming as well as casino expansions in Illinois, Nebraska and Virginia.

Data compiled by the American Gaming Association (AGA) from state regulatory disclosures shows that combined revenue from commercially operated land-based casinos, sports betting, and iGaming increased by 8.9 percent year-over-year, reaching $17.63 billion for the quarter. Q2 was the industry’s 14th consecutive quarter of year-over-year growth and its highest-grossing Q2 revenue performance on record.

Sports Betting Drives Online Revenue Growth

The U.S. commercial gaming industry realized year-over-year growth across both land-based and online gaming in Q2.

Quarterly revenue from land-based gaming – including casino slots, table games and retail sports betting – totaled $12.57 billion, 1.6 percent higher than Q2 2023. The rate of growth for land-based gaming improved slightly year-over-year from Q2 2023 and significantly from Q1 2024.

Meanwhile, online gaming revenue growth – comprising iGaming and online sports betting – reaccelerated in Q2, increasing 32.5 percent year-over-year compared to 21.8 percent in Q1, driven largely by online sports betting. At the same time, growth in total online revenue is clearly moderating, with Q2 2024’s 32.5 percent expansion below the nearly 44 percent year-over-year gains seen in Q2 2023.

$3.7 Billion in Gaming Taxes Bolster State and Local Governments

State and local governments in gaming states benefited from billions of dollars in direct gaming taxes in the second quarter. Commercial gaming operators paid an estimated $3.73 billion in taxes tied directly to gaming revenue, an increase of 4.0 percent year-over-year.

Note that these gaming tax figures only cover specific state and local taxes directly linked to gaming revenue that are reported monthly or quarterly. Fees that are levied on an annual basis are not covered, nor are sports betting excise tax payments to the federal government. The figures also do not encompass the billions of additional tax dollars paid by the industry on income, sales, payroll or various corporate taxes.

Nearly 3/4 of States See Revenue Increases

Of the 33 operational commercial gaming jurisdictions that had complete data available through June and operations last year, 24 increased second-quarter revenue compared to 2023.

Oklahoma (-8.2%) saw the largest contraction in Q2, driven by the closure of storm-damaged Will Rogers Downs in June. Other markets with Q2 revenue declines were sports betting only New Hampshire (-5.3%), as well as New Mexico (-4.6%), Mississippi (-2.3%), Massachusetts (-2.7%), Missouri (-1.9%), Rhode Island (-0.8%), Florida (-0.6%) and Iowa (-0.1%).

Sports Betting Expands with Strong June Performance

Second quarter sports wagering revenue grew 35.3 percent to $3.16 billion, setting a new record for second-quarter revenue.

New market launches in Kentucky, Maine, North Carolina and Vermont since last spring contributed to a robust commercial sports betting handle of $31.75 billion in the second quarter, a 32.8 percent increase compared to the previous year.

Second quarter sports betting hold increased to 9.96 percent from 9.77 percent last year.
Note that data for June sports betting in Arizona and Oregon had not been released at the time of publication.

iGaming Expands Annually, Contracts Compared to Q1

Annualized iGaming growth remained strong in the second quarter, generating $1.97 billion of revenue across seven states, up 25.2 percent over the second quarter of last year. Sequentially, iGaming revenue declined slightly (less than one percent) from the first quarter of this year. This is the second year in a row with softening iGaming revenue between the first and second quarters.

Each of the six iGaming states with 2023 comparisons grew year-over-year in the second quarter, led by 264 percent growth in Delaware powered by the Delaware Lottery’s new iGaming partner Rush Street Interactive. Each of the other six pre-existing iGaming markets posted annualized quarterly growth of 20-39 percent.

Compared to the first quarter of the year iGaming revenue expanded in Rhode Island, Delaware, West Virginia and New Jersey while contracting in Connecticut, Michigan and Pennsylvania.

Year-to-date through June, national iGaming revenue stands at $3.95 billion, a 25.6 percent increase over the same period last year.

SOURCE American Gaming Association (AGA).