The legal sports betting market is continuing to drive profits with the growth of commercial gaming.
According to the American Gaming Association, U.S. commercial gaming generated a quarterly record $16.07 billion in revenue in Q2 2023. The impressive results in Q2, which were an 8.1% increase year-over-year, marked the 10th consecutive quarter of annual growth for commercial gaming in the U.S.
“These results are a clear indication that our post-pandemic recovery wasn’t a fluke: the gaming sector continues to thrive, and when we do well, our communities do well,” said AGA CEO and president Bill Miller in a statement. “To sustain this momentum, the AGA will continue enlisting more allies in our fight against the illegal market, bolstering responsible gaming, and building a business environment that allows our innovative industry to bring world-class entertainment to adults across America.”
The commercial gaming industry includes slots, traditional table games, sports betting, and iGaming. The group was led by slots in Q2 2023, which generated $8.89 billion in revenue. However, sports wagering reported the most significant growth in Q2 2023 with revenue reaching $2.3 billion, up 56.6% compared to the same period last year.
Meanwhile, iGaming — which is only legal in under 10 states across the United States — generated $1.48 billion in revenue, a 22.5% uptick compared to Q2 2022. Table gaming was the only U.S. commercial gaming vertical to not report growth as revenue reached $2.46 billion in Q2 2023 — marking a 2.1% decrease year-over-year.
State-by-state results
The results for commercial gaming in Q2 2023 were comprised of 34 states and the District of Columbia. Of those 34 jurisdictions, 23 of them reported an increase in Q2 gaming revenue compared to last year.
Sports betting helped a few of those jurisdictions reach new heights. New York — the largest online wagering market in America — generated $1.16 billion in gaming revenue in Q2 2023, up 13.7% year-over-year.
The sports betting market has also benefited states that have recently authorized wagering. Massachusetts legalized online betting sites in March and reported $155.3 million in revenue from sports betting in Q2 2023. The results were driven by a $1.37 billion handle in Q2. Massachusetts and other states with sports betting are poised for continued growth.
In Q2 2023, sports fans across the U.S. wagered $23.51 billion on sports — a 19.7% uptick year-over-year.
