The American Gaming Association (AGA) has released its annual commercial gaming revenue report marking another year of record results for the industry.
In 2024, U.S. commercial gaming generated a record $71.9 billion in revenue marking the fourth consecutive year of historic results. The results in 2024 surpassed the U.S. commercial gaming industry’s previous high of $66.5 billion in full-year revenue. The AGA projects U.S. gaming revenue to reach $115 billion with the inclusion of tribal gaming.
The National Indian Gaming Commission is set to release its report later this year.
Last year, traditional casino gaming spearheaded the record results with the vertical closing with $49.7 billion in gaming revenue mirroring results from the year prior. Sports betting reported favorable growth with revenue increasing by 25.4% year-over-year.
Steady pace for U.S. sports betting
In 2024, sports betting revenue reached $13.7 billion, up from $10.9 billion. December 2024 marked the first period in 46 months that commercial gaming revenue declined.
That month, revenue fell by 2% compared to $6.1 billion compared to December 2023. The decline in revenue was attributed to lower sports betting revenue amid a low hold rate.
Sports betting continued to surge in 2024 with Americans wagering $147.9 billion with legal operators, a 23.6% increase compared to the year prior. The U.S. sports betting industry benefited from the addition of North Carolina and Vermont as regulated markets. The two states combined for $605.6 million in sports betting revenue in 2024.
As of December 2024, 38 states and the District of Columbia offer regulated wagering.
New York closed 2024 ranked No. 1 for total sports betting revenue at $2 billion, a 23% uptick year-over-year. Illinois closed with the second-highest revenue at $1.2 billion surpassing New Jersey as the second-largest U.S. sports betting market. Last year, New Jersey finished third for revenue at $1.1 billion, a 14.% increase compared to 2023.
The AGA’s latest data does not include November and December results for Arizona.
America’s iGaming industry is growing
Online casino operations across America also posted considerable growth in 2024 with iGaming revenue reaching $8.4 billion, a 28% increase compared to the year prior. In Q4 2024, iGaming also reported a spike in revenue with a 33% uptick compared to Q4 2023.
The popularity of iGaming generated a quarterly record $18.6 billion in revenue in Q4.
The iGaming industry got a boost in Q1 2024 with the addition of Rhode Island as a regulated market bringing iGaming to a total of seven states. In 2024, the six longstanding states reported record annual results. Last year, Delaware saw its iGaming revenue grow by 345% compared to 2023. New Jersey posted the lowest year-over-year rate at 24%.
Q4 also marked a historic period with a quarterly record $2.3 billion in iGaming revenue.
State and local governments benefit from gaming
The U.S. commercial gaming industry not only generated record results for operators in 2024 but state and local governments across the country also benefited from its growth.
Last year, operators paid approximately $15.6 billion in gaming taxes. The results are an 8.5% increase compared to 2023. The AGA’s latest data regarding tax revenue from gaming does not consider annual fees or sports betting excise tax payments.
In Q4 2024, operators paid $4 billion in gaming taxes compared to $3.7 billion for Q4 2023.
Illegal and offshore gaming
AGA president Bill Miller voiced his concerns about illegal and offshore gambling operators and against online casino sweepstakes during the association’s annual State of the Industry presentation.
“They’re targeting vulnerable communities, generating zero tax revenue to support local services, attracting crime and exploiting people who confuse them with legitimate gaming machines.”
Then there’s the newer categories of unregulated actors that appear to bypass or circumvent state gaming, from currency exchanges to digital asset platforms. These entrants deploy legal acrobatics to avoid calling themselves betting or gambling, only then to offer products that most would most universally would agree are gambling, yet without the safeguards and regulatory constraints that build consumer trust.”
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