AGA: US commercial gaming revenue down 31% in 2020, sports betting up 69%

The American Gaming Association (AGA) on Thursday released its State of the States 2021: The AGA Survey of the Commercial Casino Industry. The report shows that the COVID-19 pandemic caused a 31% year-over-year drop in commercial gaming revenue in 2020, the industry’s lowest total annual revenue since 2003, with consumer spending on commercial gaming falling to $29.98 billion.

AGA noted that while the pandemic significantly hit traditional gaming sectors, the industry experienced "monumental growth" in emerging verticals like sports betting and iGaming.

According to the new report, all 25 states with physical commercial casino gaming reported lower revenue than in 2019. By the end of the year, 19 states plus the D.C. had active legal sports betting markets. Despite land-based casino closures and the suspension of major sporting events in the spring, sports betting saw significant growth, as Americans legally wagered $21.5 billion on sports, compared to $13 billion in 2019. Revenue from legal sports betting operations increased 69% to $1.5 billion.

iGaming generated nearly $1.6 billion in revenue across the four markets that were operational in 2020 (excluding Nevada online poker), tripling 2019’s revenue total.

In addition, the Baltimore-Washington, D.C. gaming market is now the third largest in the country, surpassing Chicagoland and trailing only the Las Vegas Strip and Atlantic City. The Gulf Coast, St. Louis and Shreveport/Bossier City markets all jumped several spots in the top 20 rankings.

“The gaming industry faced enormous challenges in 2020 – and we also saw significant changes, as player demographics shifted and emerging verticals saw strong growth,” said AGA President and CEO Bill Miller. “From sharp revenue declines, to booming legal sports betting activity and overwhelming voter enthusiasm behind gaming, this year’s report reflects both the highs and lows of the past year.”

In the first two months of 2020, US commercial gaming revenue was up 11.4 percent compared to the same time in 2019. However, due to mandated casino closures and capacity restrictions, revenue fell significantly for the remaining 10 months of the year, beginning in March when all U.S. casinos shuttered due to the pandemic.

Collectively, America’s commercial casinos lost more than 45,600 business days due to pandemic-related closures last year, meaning they were closed for approximately 27% of the year on average.

Check out the top 10 commercial gaming markets in 2020: pic.twitter.com/ku9G2A41Cu

— American Gaming Association (@AmericanGaming) May 20, 2021

In a survey conducted in April 2020, AGA member company executives, including commercial and tribal operator and supplier CEOs and CFOs, estimated a revenue decline of slightly more than 40% in 2020 and a timetable for recovery of up to two years. Q1 2021’s commercial gaming revenue numbers tied for the highest-grossing quarterly total ever, suggesting a quicker recovery than anticipated.

“The first quarter of 2021 clearly shows that consumer interest in gaming never waned, despite the challenges of 2020,” said Miller. “This momentum is a direct result of our industry’s ability to provide safe environments for our employees and guests to return to and is a strong indicator that our recovery is on the horizon.”

See the full AGA's State of the States 2021 report here.