USA’s commercial gaming industry reports staggering growth in a post-pandemic world, with gaming operators experiencing yet another record quarter in Q2 2024. According to the American Gaming Association (AGA), the gaming sector across 37 states where some form of gambling is legalized raked in a record $17.63 billion during the second quarter of the year.

From the stellar stats, the US commercial gaming scene has proved its resilience since the end of the pandemic. On top of this being the 14th consecutive quarter reporting year-over-year growth, it is the highest-grossing Q2 of all time. This $17.63 billion showing is an impressive 8.9% rise from the second quarter of 2023.

The market saw year-over-year growths in both in-person and online gaming for the quarter. Land-based gaming revenue collected from slot machines, table games, and sports betting totaled $12.57 billion, increasing by 1.6% compared to the same period in 2023. Online gaming saw a 32.5% year-over-year growth, a significant rise from the 21.8% growth recorded in Q1.

Revenue Growth Expected in 2024

Operators across gambling legal US jurisdictions paid $3.73 billion in taxes to their respective local governments, recording a 4.0% year-over-year increase. However, the figures for the second quarter fall slightly short compared to the first. Combining Q1 and Q2 2024 brings the total revenue for H1 to $35.48 billion, up 7.7% from 2023. This consequently brings the total tax revenue for January through to June at an impressive $6.67 billion.

While the industry’s growth streak can be broadly attributed to post-COVID recovery experienced in numerous other sectors, this is not the only reason. A major game-changer for the US gambling market is the steady increase in the number of jurisdictions legalizing different categories of betting. Additionally, several investors have put millions into renovating existing structures and setting up new facilities, attracting broader audiences and engaging more punters.

The AGA commercial gaming revenue tracker also pointed out that the continued revenue growth resulted from expanded sports betting. Undoubtedly, the gaming scene performance uptick is all thanks to the ongoing expansion into more states through legalization and iGaming. Since the PASPA ban was lifted in 2018, the sports betting market has grown tremendously, with several states joining every year.

Previously, Nevada, which remains the top-grossing state with $3.85 billion in Q2 2024, was the only state allowed to operate sportsbooks. Now, even a threat to Nevada’s upward surge, like July’s closure of the Mirage for renovations, has not deterred gaming analysts from projecting positive numbers for the coming months.

Some of the newest states to finalize legislation on sports betting and pass bills to legalize the activity include North Carolina in March, Vermont in January, Maine in November 2023, and Kentucky in September 2023. AGA Vice President of Research David Forman revealed:

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“While sports betting and iGaming continued to drive overall industry revenue growth in the second quarter, new brick-and-mortar property openings in Illinois, Nebraska, and Virginia also led to rising traditional commercial gaming revenue.”

Forman went on to note that retail markets may soon suffer a slowdown due to the increased cost of living that has led to multiple players losing some of their spending power. Some states that reported a decline in land-based gaming revenue are New Jersey, the second highest-grossing state after Nevada, which reported a 6% drop, Louisiana (-6%), Virginia (-3%), and Illinois (-2%). With that, Forman added:

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“Across the country, land-based gaming markets are seeing mixed year-over-year comparisons due to slower consumer spending economy-wide, which may continue to be a factor through the remainder of 2024.”

Decline Reported in Some States Despite Overall Growth

The quarterly revenue growth resulted from market expansions in various states, although not all markets recorded growth. Of the 33 jurisdictions operating since the last fiscal year, 24 reported a rise in revenue, while the rest registered some contractions in the betting handles.

That said, the biggest loser was Oklahoma, with an 8.2% plunge in revenue. The decline in The Sooner State was attributed to a storm that led to the damage and closure of Cherokee Nation Will Rogers Downs Casino at the end of May. As a result, this rendered the facility unusable in June.

Other markets that reported less income than the previous year, as reported by AGA, are New Hampshire (-5.3%), New Mexico (-4.6%), Mississippi (-2.3%), Massachusetts (-2.7%), Missouri (-1.9%), Rhode Island (-0.8%), Florida (-0.6%) and Iowa (-0.1%). It should be noted that revenue from tribal casinos & sportsbooks, and Lotteries has not been included in the AGA tracker.

AGA’s Resolve in Supporting Legalized Markets

As the premier industry trade body for the US gaming sector, the AGA oversees all markets while bringing offshore gaming operators to book. The black market has been a thorn in the side of regulated markets as it has been continually raking in billions in tax-free revenue that never serves to bolster community development.

This is why the trade body has been launching campaigns in different states, seeking to streamline some markets operating in legal limbo. Some of these markets include the case of Pennsylvania, Missouri, Kentucky, Virginia, and Illinois, where slot-machine-like ‘Skill Games’ have continued to operate with no clear direction on who should provide needed oversight. The association has been at the forefront in guiding states looking to regulate their gaming markets. As stated by the group on several occasions, AGA prides itself on the current state of legalized gambling in the US.

After the Q1 2024 gaming report was released, AGA President and CEO Bill Miller made some observations on the progress so far, saying:

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“While gaming’s momentum remains strong, 2024 will be the new baseline for future growth after several years of sports betting legalization and post-pandemic consumer shifts.”

Miller also added that the industry’s resilience was fueled by the nation’s efforts to maintain a “commitment to innovation and responsibility.”

Industry Rapid Growth as States Embrace Gaming

The apparent thriving of the US commercial gaming market speaks to the sector’s sturdiness. With several driving factors pushing the numbers even higher, it is expected to grow even further.

Another primary driver for the sustained growth in the US gaming markets, as already mentioned, is the changing legal landscape. Regulatory hurdles that once blocked off a huge percentage of revenue that legislators are increasingly becoming aware of have been eased. The change in attitude towards the possible benefits of gaming to communities nationwide is opening up more markets in states that were hell-bent on vilifying gambling.

As more states join their counterparts in employing innovative ways to unlock more revenue streams, the industry is generally poised for continued success. According to analysts, the 2024 revenue is expected to be a fourth consecutive annual streak.