Commercial Gaming Revenue Tops $17.7B in Third Quarter of 2024

Commercial Gaming Revenue Tops $17.7B in Third Quarter of 2024

In the third quarter of the year, commercial gaming earnings hit $17.71 billion, driven by the growth of the sports betting and iGaming sectors. 

The American Gaming Association (AGA) announced Thursday that players experienced greater losses than ever during the period from July to September. The $17.71 billion indicated an 8.1% increase compared to the previous year. Q3 also represented the gaming industry's 15th straight quarter of year-over-year expansion. 

That's the positive aspect. Now, the negative. 

Although overall gaming revenue kept increasing, the situation wasn't as positive for traditional gaming interests or physical gaming establishments. The AGA report showed that revenue from in-person casino gamblers fell nearly 1% to $12.38 billion. 

“Traditional brick-and-mortar casino gaming revenue contracted annually by less than 1% in the third quarter, with slot machines and table games generating $12.38 billion in revenue. Brick-and-mortar revenue decreased year over year in two of the three months in Q3, only rising in August,” the AGA summary read.

Table games contributed to the decline in legacy, while slot winnings increased by 1.3% to reach $9.1 billion. Nationwide table hold was only 20%, marking the fourth consecutive quarterly drop. Felt GGR decreased by 8.3% in the quarter to reach $2.42 billion. 

The leftover $860 million in legacy revenue was generated by retail sportsbooks, poker lounges, and various casino games such as bingo. 

iGaming, Expansion of Online Sports Betting 

Retail casino losses at the gaming tables were readily counterbalanced by online platforms, where internet casinos and mobile sportsbooks persisted in experiencing revenue growth. 

Over the three-month period, sanctioned online casino gaming in Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia surged 30% to reach $2.08 billion. Sportsbook earnings reached $3.24 billion, an increase of 42% compared to Q3 of the previous year. 

In three quarters, iGaming revenue across only seven states exceeded $6 billion, increasing by 27.2%. That amounts to 16.2% of the $37.2 billion earned by physical casinos in 27 states with commercial casino gaming. Rhode Island became the seventh state for iGaming when Bally’s Casino online platform launched in March.

"Each of the six iGaming states with 2023 comparisons grew year over year in the third quarter, led by 393% growth in Delaware powered by the Delaware Lottery’s new iGaming partner Rush Street Interactive. Each of the other five pre-existing iGaming markets posted annualized quarterly growth of 25-68%,” the AGA said.

Over the course of nine months, sports bettors have incurred losses of $9.96 billion, an increase of 33.6% compared to the same time last year. The $9.96 billion represents a record high for sports betting revenue in the third quarter, as the market starts to stabilize following the absence of new states rolling out sports betting this year. 

Missouri is likely to become the 39th state to legalize sports gambling next year after voters approved it via a statewide ballot referendum in the election on November 5. 

Market Forecast 

After nine months of 2024, all commercial gaming sectors are showing gains, with traditional casino GGR increasing by 0.4% even amidst a challenging third quarter. Although some Americans are reducing their spending on leisure as inflation keeps everyday goods expensive, the gaming industry is still growing. 

“Through the first nine months of the year, nationwide commercial gaming revenue stands at $53.24 billion, pacing 8.0 percent ahead of 2023 and putting the industry on track for a fourth straight record revenue year,” the AGA concluded.