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USA Commercial Gaming Revenue Hits $53 Billion In 2021
By Jeff Osienya Feb 18, 2022 IndustryThe rapid expansion of the US commercial gaming sector has driven the industry revenue to a historic $53 billion high in 2021. Join us as we take a closer look into the numbers in AGA’s report and how the industry achieved the success.The year 2021 wasn’t particularly a splendid one when it came to how many industries fared. The US commercial gaming scene, however, was one of the few exceptions that soared with record-breaking numbers. A new report by the American Gaming Association (AGA) indicates that the USA commercial gaming sector won a whopping $53 billion in revenue for the 2021 calendar year.
The previous record-holder was $43.65 Billion set in 2019, a figure that has now been shattered by an impressive 21% margin. Additionally, the stellar performance in 2021 represents a sharp 76.67% jump compared to the $30.0 billion garnered for the pandemic-impacted 2020 calendar year.
Overall, the US commercial gaming sector closed 2021 with the winning streak that began earlier in the year. For instance, by August, the $34.15 billion gaming revenue by brick-and-mortar casino gaming, sports betting, and iGaming had already surpassed what has been seen for the entire 2020. Moreover, within those six months, the industry also recorded its best month in history, when it garnered a record-shattering $4.83 billion haul in July.
Come Q3 2021; the commercial gaming scene recorded its best quarter in history with a $13.89 billion win. This figure was eventually crushed by the $14.31 billion revenue collected over the last quarter of 2021. Mind you, halfway through Q4 2021, the AGA had already crunched the numbers and projected that the industry’s revenue was poised for a historic $50 billion-plus year in 2021. The prediction was spot on!
AGA President and CEO Bill Miller marveled at the results in a press statement on Tuesday saying:
Quote“These results are nothing short of remarkable. The success of 2021 reflects our commitment to health and safety and how Americans have welcomed gaming’s expansion across the country. Today’s industry is effectively meeting customers how and where they want to engage—whether at a casino or through mobile gaming.”
Breaking Down the Record-Breaking Numbers
In 2021, records were broken on several friends across the US commercial gaming expanse. The established markets like Nevada, Pennsylvania, and New Jersey posted records smashing figures as expected and played a big part in the numbers reported. 23 out of the 34 established gaming jurisdictions set individual records for full-year commercial gaming revenue. Moreover, new entrants in the commercial sports betting market that were entered the burgeoning industry also did their part.
There was an air of resurgence from the severe pandemic crisis in land-based casinos as slot machines and table games teamed up to bring in an impressive $44.94 Billion. This was a 6.6% increase over the previous record held in 2019. Meanwhile, Connecticut and Michigan, which opened their iGaming markets in 2021, also helped push the online gambling revenue to a record $3.71 billion.
On the other hand, sports betting numbers generated a $4.29 billion revenue from a $57.22 billion handle, with both figures besting previous highs. There was a 177% climb in revenue year over year, whereas the total handle jumped by 165% compared to 2020. We have to give it up to newly launched regulated sports betting markets like Louisiana, Maryland, South Dakota, Virginia, Wyoming, Arizona, and Connecticut as they made their presence felt.
Discussing the sports betting revenue boost, the AGA reported that:
Quote“Much of the increase in sports betting activity was due to the market launch in seven new commercial markets, as well as four tribal-only sports betting states. Continued market expansion across the US also led to record annual wagering in 17 of 18 existing markets, including a steep surge in Michigan following the addition of legal, mobile wagering options.”
Looking at iGaming and sports betting combined, the two verticals generated $8 billion in revenue, 158.0% more than they produced over the 2020 calendar year. Furthermore, the $8 billion win made up 15.1% of the entire $53 billion haul, marking the largest contribution to the overall revenue in history for the commercial gaming industry.
While the figures released by the AGA do not include the statistics from tribal-only gambling facilities, it’s also worth pointing out that tribal gaming also had a blast in 2021. As the AGA disclosed, four new tribal-only sports betting states entered the scene, and Miller also said that several tribal leaders informed him they had their best year to date. According to AGA estimates, tribal gaming saw about $35 - 40 billion in the 2020 calendar year.
Further Optimism and Bigger Dreams for the Future
Based on how well the new markets in 2022 are doing, there is more reason to be optimistic for even better figures to be recorded in 2022. For example, The Empire State blew past $1 billion in wagers in barely 2 weeks of operation, and Louisiana has also been reported to have had a dynamite launch. And with states like Iowa, Massachusetts, and Missouri following suit, the pieces are all coming together nicely for another record-breaking year.
Regarding the newly unveiled sports betting markets in 2022, the AGA President and CEO said:
Quote“Look at New York or Louisiana—does anybody reasonably think that millions of people just decided to try out sports betting for the first time last month? Of course not. Americans have been betting on sports as long as they’ve been sports to bet on; they just haven’t had the legal opportunity to do it before. Raising awareness and attracting players to legal sportsbooks is how we protect consumers, generate needed tax revenue, and stamp out the illegal market.”
Miller also voiced his optimism for the future of the USA’s commercial gaming industry, especially as more states continue warming up to regulated sports betting. He added:
Quote“But that’s just the beginning. Sports betting in Nebraska and Ohio will come online, and Maryland’s mobile launch is in the works. Seven new states are considering sports betting legislation this year, and four states are considering iGaming.”
CEO Miller of the AGA additionally pointed out that the gaming industry is still reliant on the full return of travel and events. If the current numbers are anything to go by during a pandemic, then $53 billion won’t be the annual record for much longer when the industry becomes fully operational.
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