Published on: November 21, 2024, 12:18h.
Last updated on: November 21, 2024, 12:18h.
Commercial gaming revenue for the third quarter of the year hit $17.71 billion, with growth seen in sports betting and iGaming sectors.
The American Gaming Association (AGA) reported a record-high $17.71 billion in revenues during the third quarter, showing an 8.1% year-over-year increase. This quarter marks the 15th consecutive quarter of growth in the commercial gaming industry.
Although overall gaming revenue grew, traditional brick-and-mortar casinos experienced a decline of nearly 1% in revenue to $12.38 billion, according to the AGA report.
“Despite experiencing a yearly decline of less than 1%, brick-and-mortar casino revenue from slot machines and table games totaled $12.38 billion in the third quarter. Revenue from physical casinos decreased in two of the three months in Q3, only showing an increase in August,” as summarized by the AGA.
The decline in traditional casino revenue was mainly driven by table games, while slot machine revenue saw a 1.3% increase to $9.1 billion. National table hold dropped to just 20%, marking the fourth consecutive quarterly decline. Revenue from table games saw an 8.3% decrease to $2.42 billion.
The remaining $860 million in legacy revenue came from retail sportsbooks, poker rooms, and other casino games like bingo.
iGaming, Online Sports Betting Growth
While traditional casino revenue faced challenges, online platforms thrived with internet casinos and mobile sportsbooks seeing significant revenue growth.
Regulated online casino gaming in seven states, including Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia, surged by 30% to $2.08 billion during the quarter. Sportsbook revenue also increased by 42% to $3.24 billion compared to Q3 of the previous year.
iGaming revenue in seven states exceeded $6 billion in the first three quarters of the year, showing a 27.2% increase. This accounted for 16.2% of the total $37.2 billion revenue generated by physical casinos in 27 commercial gaming states. Rhode Island joined the iGaming market in March, becoming the seventh state to do so.
In the third quarter, each of the six iGaming states with 2023 comparisons saw year-over-year growth, with Delaware leading the way with a 393% increase fueled by a partnership with Rush Street Interactive. The other five existing iGaming markets also posted strong quarterly growth of 25-68%,” as per the AGA.
Sports bettors lost $9.96 billion through nine months, marking a 33.6% increase from the same period last year. This figure set a new revenue record for sports betting in the third quarter, as the market stabilized after no new states launched sports betting during the year.
Missouri is anticipated to become the 39th state to legalize sports gambling next year following approval through a statewide ballot referendum in the November 5 election.
Market Outlook
With nine months of data for 2024, all segments of commercial gaming are showing positive trends, with traditional casino revenue up by 0.4% despite challenges faced in the third quarter. Despite some consumers reducing leisure spending due to inflation, the gaming industry continues to show growth.
“For the first nine months of the year, total nationwide commercial gaming revenue reached $53.24 billion, showing an 8.0% increase from 2023 and positioning the industry for a fourth consecutive year of record revenue,” concluded the AGA.