The American Gaming Association (AGA) has projected that US commercial gaming revenue will exceed $67 billion in 2024, continuing an unprecedented streak of record-breaking annual growth. With a remarkable performance driven by online gaming and sports betting, the commercial gaming sector is solidifying its position as a powerhouse of the US economy.
US Commercial Gaming Revenue Set to Surpass $67 Billion in 2024: A Record-Breaking Trend
Strong Growth in 2024: A Snapshot of the Gaming Industry
Year-to-Date Revenue Highlights
As of September 2024, the total commercial gaming revenue stood at $53.24 billion, reflecting an 8% increase year-on-year. This robust growth has been fueled by evolving market dynamics, technological advancements, and shifting consumer preferences.
Q3 2024 Performance: A New Benchmark
The third quarter of 2024 witnessed a record-breaking performance, generating $17.71 billion in revenue. This achievement marked the highest Q3 figures in the industry’s history, underlining the sector’s resilience and adaptability despite broader economic challenges.
Online Gaming: The Catalyst for Growth
iGaming Revenue: A 30.3% Surge
Online gaming continues to be the cornerstone of the industry’s growth. The iGaming segment saw an impressive 30.3% increase, reaching $2.08 billion in Q3 2024. This growth highlights the rising popularity of online platforms, driven by their convenience and innovative offerings.
Sports Betting: A 42.4% Increase
Sports betting also played a pivotal role, with revenue climbing 42.4% to $3.24 billion. The sector’s growth has been bolstered by the legalization of sports betting in additional states, strategic partnerships with professional sports leagues, and the integration of real-time betting technologies.
Online Channels: 29% of Total Revenue
Combined, online gaming and sports betting contributed a substantial 29% of the total industry revenue in Q3 2024. This shift underscores the growing influence of digital platforms in reshaping the commercial gaming landscape.
Traditional Casinos: Stability Amidst Challenges
Slight Decline in Revenue
While online gaming has seen explosive growth, brick-and-mortar casinos experienced a marginal 0.9% decline, generating $12.38 billion during Q3 2024. Factors such as economic uncertainties and changing consumer habits have impacted traditional casino revenues.
New Openings and Continued Demand
Despite the decline, the segment benefited from new casino openings and sustained demand. These developments have helped maintain stability, ensuring that brick-and-mortar establishments remain a vital component of the industry.
Demographic Shifts: A Younger Customer Base
The gaming industry is witnessing a significant demographic shift, with the average age of casino visitors dropping from 50 to 42 years. This trend highlights the industry’s ability to evolve and attract younger generations, driven by modernized gaming experiences, enhanced entertainment options, and a focus on digital engagement.
Regulatory Developments: Ensuring Fairness and Oversight
Combatting Illegal Operators
The AGA has emphasized its commitment to regulatory oversight by addressing illegal gaming operations. A notable achievement in this area was a legal victory in Virginia against unlicensed gaming machines, setting a precedent for stringent compliance measures.
Fostering Industry Accountability
By ensuring adherence to regulations, the industry aims to maintain fairness and transparency, fostering trust among stakeholders and consumers alike.
Economic Contributions: Gaming Taxes and Community Support
Record-High Gaming Taxes
In Q3 2024, the commercial gaming industry contributed $3.79 billion in gaming taxes, an 8.9% increase compared to 2023. These taxes play a crucial role in supporting state and local budgets, funding essential services such as education, infrastructure, and public safety.
Job Creation and Economic Impact
The gaming sector remains a significant driver of economic activity, providing thousands of jobs and supporting ancillary industries. From hospitality and tourism to technology and retail, the ripple effects of the gaming industry’s growth are far-reaching.
Future Outlook: Opportunities on the Horizon
AGA’s Vision for 2025
Looking ahead, AGA President and CEO Bill Miller has expressed optimism about the industry’s trajectory. He highlighted opportunities for further growth, particularly as the industry continues to attract younger demographics and expand its digital offerings.
Leveraging Technology and Innovation
The integration of advanced technologies, such as artificial intelligence, blockchain, and virtual reality, is expected to revolutionize gaming experiences, enhancing engagement and operational efficiency.
Expanding Markets
With additional states considering the legalization of sports betting and iGaming, the industry is poised for geographic expansion, unlocking new revenue streams and reaching untapped markets.
Conclusion: A Thriving Industry
The US commercial gaming industry is on track to achieve unprecedented heights in 2024, driven by the rapid growth of online gaming and sports betting. Despite challenges faced by traditional casinos, the sector has demonstrated resilience, adaptability, and a commitment to innovation.
FAQs About US Commercial Gaming Industry Growth
1. What is the projected revenue for the US commercial gaming industry in 2024?
The American Gaming Association (AGA) projects that the US commercial gaming industry will generate over $67 billion in revenue for 2024, marking the fourth consecutive year of record-breaking growth.
2. How much revenue did the gaming industry generate by September 2024?
By September 2024, the industry had accumulated $53.24 billion in revenue, an 8% increase year-on-year.
3. What was the revenue for Q3 2024?
The third quarter of 2024 saw record-breaking revenue of $17.71 billion, the highest Q3 performance in the industry’s history.
4. Which segment contributed the most to the gaming industry’s growth?
Online gaming and sports betting were the primary drivers of growth.
- iGaming revenue increased by 30.3% to reach $2.08 billion.
- Sports betting revenue rose by 42.4%, totaling $3.24 billion.
5. What percentage of the industry’s revenue came from online channels?
Online gaming and sports betting combined accounted for 29% of the industry’s total revenue in Q3 2024.
6. How did brick-and-mortar casinos perform in 2024?
Traditional casinos experienced a slight 0.9% decline in revenue, generating $12.38 billion in Q3 2024. However, new casino openings and continued demand helped maintain overall stability.
7. What demographic changes are shaping the gaming industry?
The average age of casino visitors has decreased from 50 to 42 years, reflecting the industry’s success in attracting younger generations.
8. How has the industry addressed regulatory challenges?
The AGA has focused on combating illegal operators and ensuring compliance. A recent legal victory in Virginia against unlicensed gaming machines highlighted the industry’s commitment to oversight and fairness.
9. How much did the gaming industry contribute in taxes in Q3 2024?
The industry delivered $3.79 billion in gaming taxes during Q3 2024, marking an 8.9% increase compared to 2023. These taxes support state and local budgets.
10. What opportunities does the AGA see for the future?
The AGA anticipates growth opportunities in:
- Expanding online gaming and sports betting markets.
- Leveraging technology, such as AI and VR, to enhance gaming experiences.
- Attracting younger demographics with modernized offerings.
11. What technological advancements are shaping the future of gaming?
Technologies like artificial intelligence, blockchain, and virtual reality are expected to revolutionize the industry, improving both player experiences and operational efficiency.
