The U.S. commercial gaming sector has solidified its place as a juggernaut in the entertainment industry. According to the American Gaming Association‘s Commercial Gaming Revenue Tracker, the industry closed the second quarter with a resounding $16.07 billion, an 8.1% growth compared to Q2 2022. This marks a decade-long 10th consecutive quarter of growth.
In context, H1 2023 has become the commercial gaming industry’s most profitable six months to date, grossing a staggering $32.71 billion. This impressive figure eclipses the previous year’s numbers by 11.9%.
AGA President and CEO Bill Miller couldn’t help but express his pride, stating, “While commercial gaming is on track for an unprecedented third consecutive year of record revenue, the lasting impact we’re making on our communities through this record growth is even more impressive.”
Emergence of Online Betting as a Game Changer
Land-based gaming continues to dominate, making up over three-quarters of the total revenue. However, the rapid growth witnessed in the industry is credited to the flourishing online sports betting and iGaming sectors.
Q2 brought in revenue from land-based activities amounting to $12.38 billion, a moderate 0.9% hike from the previous year. Contrastingly, online gaming revenue saw a skyrocketing 43.1% growth year-over-year, reaching $3.68 billion for Q2. This surge is partly due to the introduction of mobile sports betting in states like Kansas, Maryland, Massachusetts, and Ohio.
Furthermore, combined revenue from both online and land-based sports betting set a new industry record for any second quarter at $2.3 billion, marking a 56.6% growth year-over-year.
Miller echoed this sentiment, asserting, “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.”
US Gaming Sector Hits $16.07B, what it means for the Industry
Considering the trajectory of the gaming sector, the future seems bright, and there are significant takeaways:
- Rapid Digitalization: The impressive growth in online gaming showcases the potential of the digital sphere. Traditional land-based casinos will likely invest more in their online platforms, according to iGaming trends in 2023.
- Regulatory Landscape: With the success of mobile sports betting in various states, other states might expedite their legislation processes to tap into this lucrative sector.
- Global Eye on U.S. Market: Given the success, global investors and companies might pivot towards the U.S. market, leading to potential mergers, acquisitions, and international partnerships.
Conclusively, the first half of 2023 has set a bright tone for the industry. With continued growth and potential expansion, the gaming sector is bound to redefine entertainment in the U.S. and beyond.