U.S. commercial gaming revenue reached a quarterly record of $16.6 billion in Q1 2023, marking the industry’s eighth straight record-breaking quarter, according to the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker.
The quarter was highlighted by the industry’s highest-grossing month ever of $5.9 billion in March.
“After two full years of successive growth post-Covid, the U.S. gaming industry has never been stronger,” said AGA President and CEO Bill Miller. “With record growth across every gaming vertical—from brick-and-mortar casinos to mobile gaming—American adults continue to choose gaming as one of their top entertainment options.”
According to the AGA’s Revenue Tracker, across the country, 18 of 35 commercial gaming markets set new revenue records for the quarter, with only Mississippi trailing its quarterly revenue from Q1 2022.
Every commercial gaming vertical saw quarterly revenue records in Q1 2023. Retail gaming accounted for 75.3 percent of total revenue while online gaming represented its largest share ever, 24.7 percent. Looking further at each sector:
- Traditional Gaming: Traditional brick-and-mortar casino gaming generated quarterly revenue of $12.3 billion, surpassing the previous high of $12.26 billion in Q3 2022.
- Legal Sports Betting: Nationwide, Americans wagered a record $31.11 billion on sports in Q1 2023, generating an all-time high of $2.79 billion in quarterly revenue (plus 70.1% year-over-year). The growth compared to Q1 2022 was largely driven by new market launches in Kansas, Massachusetts and Ohio.
- iGaming: iGaming grossed $1.48 billion in Q1 2023, marking a 22.7 percent year-over-year revenue increase.
The AGA released its annual “State of the States” report last week, which provides the definitive state-by-state economic and regulatory analysis of U.S. commercial gaming in 2022 for policymakers, gaming stakeholders and industry observers.
State of the States 2023 reveals that commercial gaming generated a record $13.48 billion in direct gaming tax revenue paid to state and local governments in 2022—up 15.3 percent from 2021. This does not include the billions more paid in income, sales or other taxes.
“As one of the biggest taxpayers in states across the country, we know that when gaming is successful, so are our communities,” said Miller. “Beyond our significant tax contributions, our industry is engrained in local communities, bolstering economic development through job creation, supporting local charities and nonprofits, and setting the standard on corporate responsibility.”
