US Gambling in 2023 - A Closer Look at The Numbers

Since the overturning of the Professional and Amateur Sports Protection Act of 1992 (PASPA) in 2018, a law which was overturned to permit sports betting in certain states of the US, more and more states have opened up; to not just sports betting but iGaming as well.

According to Statista, in 2022, the US reigned in a whopping total of $60.42 billion in gross gaming revenue (GGR); this is up 13.9% from 2021. So just how much more has the land of opportunity made in 2023?

2022 US Gambling Revenue

Despite PASPA permitting sports betting, and initial thoughts perhaps going to the majority of revenue coming from sports betting, most of the GGR actually came from table games and slots in 2022.

Slots brought in $34.19 billion and table games made $10 billion of the total GGR; making up 73.1% of the total.

Out of the $60.42 billion, the area that brought in the most was Nevada which made up 24.5% of GGR by bringing in $14.8 billion in revenue.

Of this, the Las Vegas Strip made up $8.24 billion of that; making The Strip responsible for 13.6% of total US GGR.

From January - September 2023, the US had made $47.78 billion in revenue which is on track to succeed 2022’s total GGR as these months are up 10.1% on the same period in 2022.

Q1 US GGR

According to the American Gaming Association (AGA), commercial gaming revenue reached a quarterly record of $16.6 billion in Q1.

This quarter also marks an impressive 15.5% rise, compared to the same period, this time last year.

Across the country, 18 out of 35 commercial gaming markets set new revenue records for Q1 2023, reflecting the continual growth of gambling in the US.

Breaking the revenue down: table games and slots made up $12.3 billion, up 7% year-on-year, sports betting made up $2.79 billion up 70.1%. Additionally a humongous $31.11 billion was wagered on sports during this quarter.

Meanwhile iGaming grossed $1.48 billion during Q1, making for a credible 22.7% revenue increase year-on-year.

Q2 US GGR

The second quarter marked the 10th consecutive quarter of total GGR growth; increasing 8.1% to $16.07 billion when compared to Q2 2022.

However, table game GGR saw a slight dip of 2.1% year-on-year, but slot GGR stayed on the rise by 2.2%.

This quarter saw a huge increase in sports betting GGR, rising 56.6% to $2.3 billion, when compared to the same period last year, and iGaming also increased by 22.5% year-on-year to $1.48 billion.

Overall online gaming revenue surged 43.1%, compared to Q2 2022, as a combined iGaming and online sports betting revenue hit $3.68 billion. This revenue

expansion was most likely driven by the legalization of online betting in Maryland, Kansas, Ohio and Massachusetts within the past year.

Year-to-Date Results

Year-to-date (January-June 2023) there remain increases all across the board, total GGR had risen by 11.9%, sports betting had increased 65.5%, iGaming rose 22.6% and slot GGR also increased by an overall 4.9%.

From January until June 2023, the total GGR was at $32.71 billion - on track to overshadow its current record….

Q3 US GGR

The rising percentages begin to decline as we go through the quarters, with GGR increasing 6.1% - compared to Q1’s astounding 15.5% - however, the figure still remains at $16.17 billion, similar to Q1’s GGR of $16.6 billion.

Additionally, this quarter was the US’s commercial gaming industry’s best Q3 to date and it also marked the 11th consecutive quarter of annual GGR growth.

When broken down, combined slot and table game revenue made $12.49 billion up 1.8%; sports betting increased 19.4% to $2.23 billion and iGaming GGR rose the most out of all of 2023’s quarters rising 26% to $1.52 billion. Meanwhile the combined revenue from online sports betting and iGaming totaled $3.61 billion.

Year-to-Date Results

Meanwhile, year-to-date, from January to September total GGR stands at $48.78 billion, an increase of 10.1%, compared to the Q1-Q3 results of the previous year.

In addition, every other vertical was also on the rise: slots GGR increased 3.8% to $26.7 billion, table game GGR rose 2.3% to $7.6 billion, sports betting increased 52.9% to $7.2 billion, and lastly iGaming GGR had risen 23.8% to $4.49 billion.

Q4 US Gaming Revenue Predictions

With three-quarters of the year complete, the US gaming industry is on track to provide a record level of tax for state and local governments.

So far, the industry has paid approximately $10.69 billion in gaming taxes during the first nine months of 2023, 10% more than the same period in 2022.

As of right now, it looks like the US is on track for another record year. Considering the average total GGR per quarter is turning out to be circa $16 billion, that puts the US on track for a potential record-breaking total GGR of $64 billion from gaming in 2023.

2023 in the Lead

Q1 still stands to be the strongest quarter, but will Q4 outshine it? Regardless, 2023 looks to be the strongest year yet for gaming revenue in the States and that number will continue to grow as more states open up and legalize different forms of betting.