The US gaming industry has hit yet another milestone, setting a new record with $17.63 billion in revenue for the second quarter of 2024, according to the American Gaming Association (AGA). This achievement marks the 14th consecutive quarter of annual revenue growth for the industry, demonstrating its resilience and continued expansion in an increasingly competitive landscape.
A Surge in Nationwide Growth
In Q2 2024, 24 jurisdictions across the United States reported year-over-year revenue growth, contributing to an impressive $3.73 billion in state taxes generated directly from gaming activities. This growth wasn’t limited to a single segment but spanned both land-based gaming and online gaming, reflecting the broad appeal and reach of the gaming sector today.
Land-Based US Gaming:
Traditional brick-and-mortar casinos, including sportsbooks, showed a slight acceleration in growth compared to the previous quarter. This segment remains the backbone of the industry, accounting for 71.4% of total revenue. Despite a slow start in April, the industry rebounded strongly in May and June, culminating in a quarterly revenue of $12.49 billion, a 1.8% increase from the previous year.
Online Gaming:
The online gaming segment, while growing at a slower pace compared to previous years, still posted significant gains. In Q2 2024, iGaming generated $1.98 billion, representing 28.6% of total gaming revenue. This growth was bolstered by new market entries, such as Rhode Island’s iGaming launch in March.
Sports Betting Continues to Flourish
Legal sports betting has become a powerhouse within the gaming industry, with Americans wagering $31.75 billion in Q2 2024. This activity generated $3.16 billion in revenue, a 35.3% increase from the same period last year. The surge in sports betting revenue was driven in part by new market launches in Kentucky, Maine, North Carolina, and Vermont since last spring. As more states embrace legal sports betting, this segment is likely to continue its upward trajectory.
Challenges and Opportunities Ahead
While the commercial gaming industry continues to thrive, it faces significant challenges. Slower consumer spending, driven by broader macroeconomic factors, has impacted year-over-year growth in land-based US gaming markets. According to David Forman, AGA Vice President of Research, this trend may persist throughout the remainder of 2024, creating a complex environment for gaming operators.
Moreover, the rapid expansion of online gaming and sports betting introduces new regulatory challenges and competitive pressures. As more states legalize these forms of gaming, operators must navigate a complex and evolving landscape, balancing innovation with compliance.
The Broader Impact
The US gaming industry’s success has far-reaching implications. Beyond generating substantial revenue, the industry contributes significantly to state economies through taxes and supporting public services and infrastructure. In 2024 alone, the industry has contributed $3.73 billion in state taxes, underlining its role as a vital economic driver.
Conclusion
As the industry continues to evolve, driven by technological advancements and shifting consumer preferences, its ability to adapt will be key to sustaining this growth. With the introduction of new gaming formats and the expansion into untapped markets, the U.S. commercial gaming industry is well-positioned to maintain its momentum.
Article Source: AGA’s Commercial Gaming Revenue Tracker.
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