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US Gaming Sector Sees Best Ever Quarter With $13.89B Win
By Jeff Osienya Nov 10, 2021 IndustryThe post-pandemic future for America’s commercial gaming sector is here. For Q3 2021, brick-and-mortar casino gaming, iGaming, and sports betting have generated a total of $13.89 billion, marking the best quarter in history.The American Gaming Association, the premier trade body for USA’s gaming sector, has released an update on its commercial gaming revenue tracker to offer insight on the industry’s performance so far. According to the numbers unveiled in the new AGA report, the quarterly commercial gaming revenue for Q3 2021 has blown past previous national records to hit a whopping $13.89 billion.
This new record performance marks the second quarter in a row that the US commercial gaming revenue has reached a new quarterly high. Compared to the pandemic dampened Q3 2020, the revenue for the third quarter of this year is 53.8% higher and is 24.7% more than what was seen in Q3 2019.
Having accrued a total revenue of $38.67 billion over the first nine months of 2021, USA’s gaming sector has already surpassed the revenue generated for the entire 2020 calendar year. Better still, this year’s performance is well on its way to crush the best-ever $43.65 billion annual win for 2019, the last calendar year that the industry was at peak performance. Compared to the first nine months of 2019, this year’s first three quarters have already won 18.5% more revenue.
Leading Gaming States Also See Record Revenue for Q3 2021
The shining performance in Q3 results from strong numbers from 10 out of the 25 commercial casino states as they all surpassed previous individual quarterly revenue performances. Nevada, New Jersey, New York, and Pennsylvania were the four best performing US states in the third quarter. It’s also worth mentioning that two gaming regions in Nevada, Clark County and the Las Vegas Strip, also recorded their best-ever quarterly gaming revenues with $3.16 billion and $2.06 billion, respectively.
Nonetheless, as impressive as the numbers are for the third quarter of 2021, there’s still room for growth as the US gaming sector heads into the fourth quarter of the year. The AGA commercial gaming report cited that recently opened commercial gaming markets including Wyoming, Connecticut, and Arizona as the key to a boosted performance in Q4.
Additionally, eased international travel restrictions will also benefit destination markets as they will now be open for meetings and conventions once again. For example, data published by the Las Vegas Convention and Visitors authority indicated that in Q3 2021, Las Vegas received a total of 9.2 million visitors. While this was a 14% decline compared to the same quarter in 2019, it is a 9.7% improvement over the second quarter of 2021. The Q3 2021 visitation volume is the highest yet since the onset of the pandemic.
On the other side of the coin, Louisiana (-10.8%) and Kansas (-1.8%) were the only two states to experience negative performances in Q3 2021 compared to the same period in 2019. Louisiana’s ten percent plus drop from the performance in Q3 2019 is attributed to the impact of Hurricane Ida, which led to the forced closure of casinos in the state for up to a fortnight. In Q3 2019, Louisiana was the fifth highest-grossing US gaming state, a position now occupied by Indiana.
Brick and Mortar Gaming Revenue Smashes Previous Records
Since commercial casinos in the US are now back top operating at full capacity, traditional gaming revenue performance in Q3 2021 has also bested the volume recorded for the same period in 2019. Brick and mortar gaming broke all-time quarterly records with a $12.05 billion win, a 1.7% uptick compared to Q2 2021, and 11.8% more than the revenue generated for Q3 2019. Further, through the first nine months of this year, land-based casino games brought in a total of $33.27 billion in revenue, a 4.7% rise compared to the first three quarters of 2019.
As expected, revenue generated from slot machine gaming kept up with its rapid growth trajectory after bringing in $8.69 billion, 15.2% more in Q3 2021 compared to the same period last year. At $2.49 billion, table game revenue also grew to with a 10.2% expansion from Q3 2020, officially making a new quarterly record.
Going back to the state level, a total of 20 or 80% of the 25 states with land-based casino gaming had their revenues coincide or outdo pre-pandemic performance. Besides Louisiana and Kansas (which only offer land-based casino gaming), Illinois, Michigan, and West Virginia also saw their brick-and-mortar casino gaming slide in the last quarter compared to Q3 2019 at -3.2%, -4.7%, and -6.6%, respectively.
Following the new developments in the US gaming sector, AGA President and CEO Bill Miller shared a few words saying:
Quote“Two straight quarters of record gaming revenue is an incredible accomplishment in any context, let alone after the most challenging year in industry history. Our recovery is not a flash in the pan but rather a sustained result of our leadership in responsible reopening, world-class entertainment offerings, and widespread favorability.
With brick-and-mortar gaming setting records, the expansion into new verticals, and domestic and international tourism recovering, the industry is in a strong position for a full recovery. I’m confident that the return of meetings, conventions, and international travel will further accelerate gaming’s recovery in 2022.”
Sports Betting and iGaming Also Record Best-Ever Wins
On top of the stellar showing from traditional casino gaming, the quarterly record for the third quarter of 2021 was also slingshot by iGaming and sports betting. iGaming, or rather online casino gaming for one, generated a total of $938.6 million, a 4.1% uptick from the second quarter of 2021.
On the flip side, sports betting garnered $886.5 million in Q3 2021, which is a 153.1% surge compared to the same period in 2020. However, compared to the first two quarters of this year, both the handle and revenue generated for Q3 slipped into a quarterly low. The handle recorded for Q3 2021 was down to 11 billion, from 11.10 billion in the second quarter, and much lower than the $13.02 billion garnered from Q1.
All in all, the combined revenue accrued from sports betting and iGaming in the just-concluded quarter made up for 13.1% of the period’s total gaming revenue. This ratio of iGaming and sports betting to traditional casino gaming was similar to what was seen in the preceding quarter (Q2), down from a 15.7% share in Q1 2021.
For the first three quarters of 2021, iGaming produced revenue worth $2.62 billion, a 145.4 % surge compared to the same period last year. On the other hand, sports betting revenue has hit $2.74 billion for the first nine months of this year, recording a 306.5% jump.
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