U.S. Commercial Gaming Revenue Tops $17.7B in Third Quarter

Posted on: November 21, 2024, 12:18h. 

Last updated on: November 21, 2024, 12:18h.

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Commercial gaming revenue during the third quarter of the year reached $17.71 billion, as the sports betting and iGaming segments continue to expand.

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The American Gaming Association (AGA) reported today that casino.org/news/u-s-gamblers-lose-17b-in-second-quarter/”>gamblers lost more money than they ever have before during the July through September stretch. The $17.71 billion represented an 8.1% year-over-year increase. Q3 also marked the commercial gaming industry’s 15th consecutive quarter of year-over-year casino.org/news/commercial-gaming-industry-sets-quarterly-record/”>growth.

That’s the good. Now, the bad.

“Traditional brick-and-mortar casino gaming revenue contracted annually by less than 1% in the third quarter, with slot machines and table games generating $12.38 billion in revenue. Brick-and-mortar revenue decreased year-over-year in two of the three months in Q3, only rising in August,” the casino.org/news/casino-lobby-claims-us-residents-concerned-skill-gaming/”>AGA summary read.

Table games were responsible for the legacy decline, as slot win was up 1.3% to $9.1 billion. Table hold nationwide was just 20%, the fourth straight quarterly decline. Felt GGR dropped 8.3% during the quarter to $2.42 billion.

The remaining $860 million in legacy revenue came from retail sportsbooks, poker rooms, and other casino gaming like bingo.

iGaming, Online Sports Betting Growth

Retail casino blunders caused by the tables were easily offset online where internet casinos and mobile sportsbooks continued to see revenue blossom.

During the three months, regulated online casino gaming in Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia soared 30% to $2.08 billion. Sportsbook revenue totaled $3.24 billion, up 42% from Q3 last year.

Through three quarters, iGaming revenue in just seven states totaled more than $6 billion, up 27.2%. That’s 16.2% of the $37.2 billion that physical casinos won in 27 commercial casino gaming states. casino.org/news/rhode-island-igaming-launches-seventh-state-online-casinos/”>Rhode Island became the seventh iGaming state when its Bally’s casino online platform went live in March.

Each of the six iGaming states with 2023 comparisons grew year-over-year in the third quarter, led by 393% growth in Delaware powered by the Delaware Lottery’s new iGaming partner Rush Street Interactive. Each of the other five pre-existing iGaming markets posted annualized quarterly growth of 25-68%,” the AGA said.

Sports bettors through nine months lost $9.96 billion, 33.6% more than they did at this point last year. The $9.96 billion marks a new sports betting revenue record for the third quarter, as the market begins to settle after no new states launched sports betting this year.

However, Missouri is expected to become the 39th legal sports gambling state next year after state voters approved sports betting through a statewide ballot referendum during the Nov. 5 election.

Market Outlook

With nine months in the bag for 2024, all commercial gaming segments are positive, as traditional casino GGR remains up 0.4% despite a difficult third quarter. Though some Americans are pulling back their leisure spending, as inflation has continued to keep the costs of everyday goods elevated, the casino.org/news/las-vegas-locals-casino-market-masking-weaknesses-says-analyst/”>gaming industry continues to experience growth.

“Through the first nine months of the year, nationwide commercial gaming revenue stands at $53.24 billion, pacing 8.0 percent ahead of 2023 and putting the industry on track for a fourth straight record revenue year,” the AGA concluded.