2022 Numbers “Outpaced Expectations”
The American Gaming Association recently reported that the commercial gaming industry in the U.S. produced over $60 billion in revenue, breaking the annual record for the second consecutive year. This is the first time the figure has broken the $60 billion mark.
This year’s $60.42 billion figure exceeded last year’s $53 billion record by a staggering 13.9%.
In-person casino slots and table games continue to thrive, and represent the biggest piece of the gaming revenue pie. These retail casino games combined for a total of $47.83 billion in revenue, over 79% of the total commercial gaming revenue. Sports betting brought in $7.5 billion in revenue (12.4% of total) and iGaming totaled $5.02 billion, or 8.3% of the total commercial gaming revenue.
“Our industry significantly outpaced expectations in 2022,” said AGA President and CEO Bill Miller. “Simply put, American adults are choosing casino gaming for entertainment in record numbers, benefiting communities, and taking market share from the predatory, illegal marketplace.”
#ICYMI: 2022 was the highest-grossing year ever for the U.S. commercial gaming industry, punctuated by record quarterly revenue in Q4.
— American Gaming Association (@AmericanGaming) February 17, 2023
Sports Betting & iGaming Numbers
Retail betting is still the dominant driver of the industry, however online sports betting and iGaming saw tremendous growth year-over-year. According to the AGA’s Commercial Gaming Revenue Tracker, U.S. sports betting revenue increased by 72.7% year-over-year to $7.5 billion in revenue in 2022. This came from a $93.2 billion sports wagering handle. This growth was in large part driven by the addition of Kansas, Louisiana, Maryland, and New York to the sports betting industry. Aside from those four, all existing markets except for two (Delaware and Mississippi) saw year-over-year growth in their sports betting handle.
With just six active states, iGaming revenue growth came at a smaller level, but still saw an impressive 35.2% jump from 2021. Note that iGaming’s growth came without any new states launching in 2022.
The fourth quarter was particularly dominant for these sectors as iGaming set a new quarterly record of $1.39 billion in revenue, up 28.2% from Q4 2021. Meanwhile, sports betting gross gaming revenue increased by 63.3% from Q4 2021 and tallied $2.54 billion. Total gross gaming revenue for the quarter ($15.85 billion) saw a 10.5% increase year-over-year.
“Even as we navigate macroeconomic headwinds, I am optimistic about the year ahead,” continued Miller. “To carry our momentum into 2023, the AGA remains focused on combating the illegal market, doubling down on responsibility, and creating favorable policy and regulatory conditions that enable our industry’s sustained success.”
Nevada, New York, New Jersey
32 gaming jurisdictions saw an increase in gaming revenue compared to 2021, plus 29 states set new annual records.
In terms of retail casino betting, Nevada unsurprisingly led the way, with the Las Vegas Strip alone accounting for $8.24 billion in gross gaming revenue. New Jersey’s Atlantic City was a far-off second, with $2.79 in gross gaming revenue.
In the sports betting world, New York had the highest gross gaming revenue in the U.S. Its $1.37 billion total took 13.7% of the market share. Illinois came in second with $775 million (10.6%), followed by New Jersey’s $763 million total (10.2%), Pennsylvania’s $597 million (8.0%), and Virginia’s $481 million (6.4%), to round out the top five.
💡#DKY: In 2022, online sports betting and iGaming made up a record 19.5% of total commercial gaming revenue.
— American Gaming Association (@AmericanGaming) February 21, 2023
2023 has already seen another state legalize sports betting: Ohio. The Buckeye State has already showed significant promise since its Jan. 1 launch as GeoComply recently reported that more people bet on the Super Bowl in the state of Ohio than any other state (even New York). Massachusetts sports betting is getting ready to join the online sports betting market as well, with a recently proposed March 10 launch date. They recently launched retail sports betting in the state, and have seen success there between their three state casinos.
Perhaps the most lucrative possibility of 2023 would be New York iGaming, which has seen a glimmer of hope in recent weeks. Sen. Joseph P. Addabbo recently proposed an iGaming bill, S4856 which entered a Senate committee on Feb. 15.