The American Gaming Association (AGA) declared that U.S. commercial gaming income reached a record peak of $16.07 billion in the second quarter, marking the tenth consecutive quarter of expansion.
Web-based gaming was the primary driver behind this surge, hitting a record $16.1 billion. This signifies an 8.1% leap compared to the total U.S. gaming income in the second quarter of 2022, making it the second-highest quarterly income in the industry’s history, only surpassed by the first quarter of this year.
Overall, the U.S. gaming sector generated $32.71 billion in commercial gaming income in the first six months, an 11.9% increase from the preceding year.
The AGA estimates that these results produced $7.28 billion in gaming tax revenue for state and local administrations, a 12.9% increase from 2022. The industry organization highlighted that the sector is on track to generate the highest total tax revenue ever.
Bill Miller, president and chief executive officer of the AGA, stated, “While commercial gaming is poised to break revenue records for the third year in a row, we are even more enthusiastic about the lasting influence we are having on communities through this record growth.”
Internet gaming led the expansion in U.S. gaming income during the second quarter. The AGA emphasized that land-based casinos continued to account for more than three-quarters of total commercial income during this period.
Nevertheless, the expansion of internet sports wagering and digital gaming was the primary force behind this year’s earnings surpassing last year’s.
During the second quarter, traditional slot machines, table games, and physical sports betting revenue reached $12.38 billion, a slight increase of 0.9% compared to 2022. In contrast, digital gaming revenue surged by 43.1% to $3.68 billion.
The extension of online gambling regulations to new states was a significant catalyst. In the past year, Kansas, Maryland, Massachusetts, and Ohio have all introduced online gambling.
The performance of online sports betting was less impressive than the first quarter due to a less active sports betting schedule.
Total online and physical sports betting revenue reached $2.3 billion in the second quarter of 2023. This represents a substantial increase of 56.6% from the same period last year. However, revenue was lower than the previous quarter due to a less active sports betting schedule.
Meanwhile, online casino revenue grew at a more moderate pace, increasing by 22.5% to a total of $1.48 billion.
“These outcomes clearly demonstrate that our post-pandemic recovery is not a coincidence: the gaming industry continues to flourish, and when we prosper, our communities benefit,” Miller stated.
“To maintain this positive trend, the AGA will continue to gather more supporters to combat the illicit market, strengthen responsible gaming practices, and create a business climate that enables our innovative industry to provide top-tier entertainment to adults nationwide.”
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