USA Commercial Casinos Record Revenue Growth for the 5th Year Straight

The American Gaming Association (AGA), which is the national trade group for the casino industry in the United States, released a report late Wednesday titled State of the States, breaking down how the commercial casino industry has faired on for the past few years. According to this report, the revenue accrued by commercial casinos in the country has been on the rise for five years, year-over-year. From the data, it is clear that the role of the casino industry across the country is becoming more vital for the growth of state economies and local communities.

Compared to 2018, USA’s commercial casino revenue in 2019 increased by 3.7%, to a whopping $43.6 billion. AGA’s report also indicated that out of the 25 states that have legalized commercial gaming, 21 of them experienced a revenue increase between 2018 and 2019. 14 of the 21 states, i.e. Rhode Island, South Dakota, Pennsylvania, Oklahoma, Ohio, New York, Michigan, Massachusetts, Maryland, Maine, Kansas, Iowa, Florida, and Arkansas set new records for their annual casino revenues.

Tax Revenue Hit a $10 Billion Milestone for the First Time Ever

As the commercial casino revenue continues to grow, what’s even more impressive is that the gaming tax revenue directly collected from commercial casinos in 2019 went above $10 billion for the very first time! A cool $10.2 billion was paid directly to state and local governments in form of gaming taxes, which is 4.1% higher than what was collected the previous year.

This $10.2 billion in taxes was used to fund economic development projects, infrastructure, health insurance programs, education, responsible gaming initiatives, and many other programs that directly benefit the respective states and the communities in which these casinos have been operating. Mind you, this $10.2 billion doesn’t include the billions more that were spent to pay other taxes such as sales and income taxes.

These numbers however didn’t account for the tribal gaming revenue whose association rolls out a revenue report later in fall. In the fiscal year 2018 however, tribal casinos reported a $33.7 billion revenue which was a 4.1% increase from 2017’s figures. By the end of 2019, the National Indian Gaming Commission reported that there was a total of 524 tribal casinos in operation across 29 states, while the number of commercial casinos stood at 465, operating in 25 states.

Strong Growth From Sports Betting Regulation

Based on AGA’s findings, part of this increase is attributed to the steady adoption of legal sports betting in individual states. In 2018, New Jersey won a Supreme Court case that led to the repealing of the PASPA, a law that had prohibited nationwide sports betting except for a few states. The ruling of the said case paved way for adoption of sports betting, and currently, 20 states and Washington D.C. have passed legal sports betting laws, even though some of the states haven’t officially launched the practice.

AGA’s report indicates that sportsbook operators in 2019 collected $908.9 million in revenue from sports bets, which is a 211% increase of the $430.7 million that was taken in the previous year.

New Jersey recorded the strongest growth of gambling revenue in a decade, with $3.46 billion in revenue after a 19.5% increase thanks to internet gambling and sports betting. This remarkable growth put the Garden State back on the map to reclaim its position as the second-largest gambling market in the USA after Nevada which amassed over $12 billion in revenue in 2019. From this report, Pennsylvania nabbed the third position with a $3.38 billion revenue after being edged out of the top two by Nevada.

This report comes as states begin to rise from the ashes of COVID-19 shutdowns which lasted for close to 3 months. Bill Miller, the president and CEO of AGA emphasized the challenge that the American gaming industry is now facing given that the industry went from steady record-shattering growth to a devastating shutdown.