Following a record-breaking second quarter, the US commercial gaming sector maintained its pace in the third quarter, with revenue hitting $17.71 billion. This marks the highest-grossing third quarter in the industry’s history, according to the American Gaming Association (AGA).
This achievement shows the industry’s 15th consecutive quarter of year-over-year revenue growth, with September marking the 43rd consecutive month of rising annual revenue. Sports wagering and iGaming continue to drive this expansion, with online gaming revenue in New Jersey surpassing live casino revenue for the first time in October.
Sports wagering and iGaming lead the charge
An important driver of growth remains the continued expansion of sports wagering and iGaming. These sectors played a crucial role in driving overall revenue in Q3, with New Jersey making news as online gaming revenue exceeded that of live casinos for the first time in October.
“Q3 2024 sustained the gaming industry’s momentum from earlier in the year, with online casinos and sports betting fueling strong growth,” said AGA Vice President of Research David Forman. “Additionally, new brick-and-mortar casino openings have supported traditional gaming, which still makes up the majority of industry revenue. Online sources now account for more than a quarter of commercial revenue, highlighting the need for continued sustainable growth in states with expanding consumer bases.”
In the first nine months of 2024, commercial gaming revenue totalled $53.24 billion, marking an 8% rise over 2023 and setting the industry on track for its fourth consecutive year of record-breaking earnings.
In the third quarter, 29 of the 35 active commercial gaming jurisdictions saw year-over-year revenue growth, resulting in an 8.9% increase in state and local taxes linked with gaming. Operators contributed $3.79 billion in tax revenue for the quarter.
State and local tax contributions
Revenue from land-based gaming in Q3 totalled $12.56 billion, a slight decline of 0.62% compared to the same period last year. At the same time, total revenue from online sports betting and iGaming reached $5.14 billion, with online gaming accounting for 29% of overall gaming revenue—up from the third quarter of the previous year. Below is a detailed breakdown of third-quarter gaming performance:
- Legal Sports Betting: Americans wagered $30.3 billion on sports, resulting in $3.24 billion in revenue, a 42.4% increase. New market launches in Kentucky, Maine, North Carolina, and Vermont helped drive this growth.
- Traditional Gaming: Brick-and-mortar casinos generated $12.38 billion in revenue, down 0.9% year-over-year.
- iGaming: Online gaming revenue hit $2.08 billion, marking a 30.3% year-over-year increase.
The AGA’s Commercial Gaming Revenue Tracker gives comprehensive state-by-state and total financial data on the commercial gaming sector, derived from state revenue reports. The tracker includes 37 states and the District of Columbia, all of which have active commercial gaming markets, but does not account for data from tribal casinos.
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