The American Gaming Association recently released its State of the States revenue report for 2024. It shows that US commercial gaming revenue has grown by 7.5% compared to last year, reaching an impressive $72 billion. This is especially impressive as last year set a new record, meaning gaming revenue has steadily increased for four consecutive years.
According to the AGA report, 28 out of 38 states with commercial gambling set all-time individual records, with 15 seeing double-digit year-on-year revenue gains. The biggest winner was Washington D.C., which saw an impressive increase of 181.7% after opening up its sports betting market.
The industry contributed $15.9 billion in state and local tax revenue, an 8.5% year-on-year growth. The actual amount is likely even higher, as this total doesn’t include federal excise tax paid by sports betting operators or other corporate taxes.
Most of the revenue growth was driven by sports betting and iGaming. Sports betting revenue increased by 25%, boosted by North Carolina and Vermont legalizing sportsbooks. Meanwhile, legal iGaming revenue increased by 28.7% to $8.4 billion. In contrast, commercial casino revenue was $49.89 billion, a 1% increase compared to 2023.
Not All Sunshine and Rainbows
Despite a strong showing, the report does highlight some negative news in the industry. While most states saw revenue increases, eight documented a decrease compared to the previous year. Montana saw the most significant drop at 15%, bringing it down to $7.1 million.
Another troubling finding was that the Gaming Conditions Index declined by 0.9% year-on-year. This index tracks “real economic activity in the industry, as measured by gaming revenue, employment, employee wages and salaries, executive sentiment, and casino hotel RFP activity.” According to the AGA, the decline was driven by weaker real wages, marginally negative sentiment, and real below-average revenue growth.
A survey of 28 AGA executives showed a 5.6% sentiment for the quarter. Respondents gave more negative than positive business outlook answers. Executives don’t expect strong results in the near future. Wages, taxes, and regulations will pressure profit margins. They also worry about data protection in the next 6 to 12 months.
The long-term outlook was more optimistic, with over 80% of executives being neutral and 14% positive. However, it’s worth noting that the survey was done from March 25 to April 8, before tariffs and subsequent market swings occurred. Several gaming companies saw their stocks dip before regaining their value.
Despite this, the association and its members remain positive. Despite short-term shocks, executives retain an optimistic long-term outlook, reflecting hope that current uncertainty will be resolved sooner rather than later.
Leave a Reply