American commercial gaming entities recorded a record $17.67 billion in the first quarter of 2024, the 13th consecutive quarter setting an all-time high.
US commercial casinos, sportsbooks, and iCasinos recorded nearly $18 billion in revenue during the first three months of 2024, according to an American Gaming Association report released Thursday. That included more than $6 billion in revenue in March, the second-highest-grossing month in US gaming history.
Eleven individual state gaming markets set quarterly records, including Pennsylvania and New York, two of the nation’s highest-grossing gaming states.
The latest record-setting quarter underscores the industry’s continued rebound since the onset of the COVID-19 pandemic shut down all commercial casinos in March 2020.
“While gaming's momentum remains strong, 2024 will be the new baseline for future growth after several years of sports betting legalization and post-pandemic consumer shifts,” said AGA President Bill Miller in a statement. “Gaming's continued growth relies on maintaining our commitment to innovation and responsibility.”
Online gaming accelerates as retail stagnates
The AGA report underscores the continued growth of online sports betting and casino gaming.
Real-money online casinos, sportsbooks, and poker rooms accounted for 29.3% of commercial gaming entities’ Q1 2024 revenues, its largest share ever. Traditional in-person casinos made up the remaining 70.7%.
Online slots, table games, and poker recorded nearly $2 billion in Q1 revenue, a 26.1% year-over-year increase. This was bolstered by the launch of Rhode Island, the nation’s seventh-regulated real money online casino market.
Sportsbooks generated $3.33 billion in quarterly revenue on $36.86 billion in handle, the vast majority coming online. This reflected a 22% year-over-year growth compared to Q1 2023. The sports betting figures were boosted by recent market launches in North Carolina, Kentucky, Maine, and Vermont.
Brick-and-mortar casino gaming recorded $12.34 billion in Q1 2024 revenue, only a 0.3% year-over-year increase. The AGA and gaming stakeholders attributed the stagnant growth in part to severe winter weather in January.
Report underscores online gaming’s importance
Generational trends have reaffirmed the shifting preferences of younger casino customers to mobile gaming, shifts reflected in recent revenue reports. Gaming from home is also not impacted by external factors such as weather.
Casino stakeholders as well as state lawmakers in more than 30 jurisdictions have supported mobile legal sports betting, which makes up more than 90% of the total handle nationwide. The convenience of placing a bet from a phone, as well as the ability to bet during live competitions, has sparked the industry’s massive growth in the six years since the Supreme Court struck down the federal wagering ban.
This has not translated into support for online slots or table games. Lawmakers have approved legal iCasinos in only seven states.
Policymakers, and some casino operators themselves, have opposed real money casino gaming over fears it would hurt existing brick-and-mortar casino revenues. This comes though industry studies have shown in online and retail markets such as Michigan that digital games can supplement, not hurt, brick-and-mortar gaming, especially during times of inclement weather.
Online slots and table games also generate about half as much revenue nationwide as mobile sportsbooks even though they are available in far fewer states. Online casino operators have, not surprisingly, pushed for legalization in new markets, though they have seen little recent success; industry observers believe it may be until at least 2026 until a new regulated iGaming market launches.
