U.S. commercial gaming revenue sets new record in 2023 at $66.5M, growth across all segments

The U.S. commercial gaming industry set a new revenue record for the third consecutive year in 2023, according to data compiled by the American Gaming Association (AGA). Total revenue from land-based casino games, sports betting, and iGaming reached $66.52 billion for the calendar year, a 10% increase over the previous record set in 2022.

With the inclusion of tribal gaming revenue, which will be reported by the National Indian Gaming Commission later this year, the total annual gaming revenue for the United States in 2023 will likely approach $110 billion.

The growth in gaming revenue took place in a year in which inflation, while receding, still kept some costs higher than they had been. “From the traditional casino experience to online options, American adults’ demand for gaming is at an all-time high,” said Bill Miller, the association's president and CEO.

Despite facing increasingly challenging comparisons, the gaming sector closed out 2023 on a positive note, with all-time single-quarter and single-month records. The fourth quarter saw a 9.5% year-over-year increase as commercial gaming revenue reached $17.42 billion, while December generated $6.22 billion in revenue, a 13.3% increase year-over-year and a new single-month high. 

Each of the primary verticals within the gaming industry, including casino slots and table games, sports betting, and iGaming, set revenue records in 2023. Casino slots and table games collectively generated $49.36 billion in revenue, a 3.3% increase compared to 2022. Meanwhile, sports betting continued to see significant growth, increasing 44.5% from 2022 and reaching $10.92 billion in revenue.

Five new sports betting markets became operational in 2023 – Kentucky, Maine, Massachusetts, Nebraska and Ohio – that together combined for $1.49 billion in revenue. By the end of the year, Massachusetts and Ohio had established themselves among the country’s top ten sports betting states by revenue. Sports betting was legal and operational in 37 states and the District of Columbia by the close of 2023.

Despite the absence of new market launches, U.S. iGaming continued its impressive growth in 2023, again posting record-breaking revenue. Combined iGaming revenue from six active states (excluding Nevada’s poker-only market) reached $6.17 billion, a 22.9% increase year-over-year.

Despite online gaming's expansion, in-person gaming remains the bedrock of the industry. Commercial land-based gaming, encompassing casino slot machines, table games, and retail sports betting, accounted for $50.02 billion, or 75.3%, of the total revenue in 2023. Meanwhile, online gaming generated $16.43 billion, representing 24.7% of total revenue.

Commercial gaming operators paid an estimated $14.42 billion in gaming taxes throughout the year, a 9.7% increase compared to the previous year. The expansion of gaming revenue in the fourth quarter also led to a record windfall in taxes for state and local governments in commercial gaming states. In Q4, commercial gaming operators paid an estimated $3.72 billion in gaming taxes, an increase of 8.5% year-over-year. 

In 2023, 12 of the top 20 commercial casino gaming markets reported revenue growth compared to the previous year. The Las Vegas Strip (Nevada) and Cleveland (Ohio) markets showed noteworthy gains, while the Baltimore-Washington DC market contracted most due to intensified regional competition.

For a fourth consecutive year, the Chicagoland (Illinois/Indiana) and Baltimore-Washington, D.C (D.C./Maryland/West Virginia) markets traded places as the third and fourth largest markets. The addition of two new casinos bolstered Chicagoland’s position, allowing it to reclaim its spot as the third-largest market.

At the individual property level, 11 of the top 20 highest-grossing commercial casinos outside of Nevada and Mississippi saw an uptick in combined land-based gaming revenue from slot machines, table games and retail sports betting compared to 2022. Resorts World NYC reclaimed its position as the highest-grossing commercial property outside Nevada, surpassing MGM National Harbor (MD).

Among the 35 commercial gaming jurisdictions that were operational in both 2022 and 2023, 31 increased combined revenue from land-based casino games, sports betting, and iGaming. Of these, 28 jurisdictions posted new annual records, including nine of the 10 highest-grossing commercial gaming states.

Traditional casino gaming sets annual record in 15 states

In 2023, traditional casino gaming generated record revenue of $49.36 billion from slot machines and table games, reflecting a 3.3% growth compared to the previous year. Both slot machine and table game revenue reached individual annual records in 2023, with slot revenue growing by 3.8% year-over-year to $35.51 billion and table games growing by 3.5% to $10.31 billion. The separate slot and table game figures do not include data from Louisiana and Michigan, though their aggregates are captured in the combined figure.

At the state level, 19 out of the 27 states offering traditional casino gaming witnessed an uptick in combined revenue from slot and table games compared to 2022. Among these states, 15 achieved new state revenue records.

The record-breaking year for traditional gaming coincided with nearly pre-pandemic levels of casino visitation. According to AGA research, 41% of the adult population, or 102 million Americans, visited a casino for gambling or other reasons in the past year. This marks a significant increase from 34% in 2022 and is just shy of the 44% recorded in 2019.

As visitation grew, the Covid-era demographic shift toward younger visitors continued. Over the past four years, there has been a consistent decrease in the average age of casino patrons, with the average age dropping to 42.0 years old in 2023. The average age on the casino floor is now nearly eight years younger than it was in 2019.