March marked the 13th consecutive quarter of growth in US gaming revenue, according to the AGA’s Commercial Gaming Revenue Tracker.
This tracker provides state-by-state and cumulative insights into the US industry’s performance, utilizing state revenue reports.
In March alone, the revenue reached $6.1 billion, making it the second highest-grossing month ever for the US gaming industry.
The first quarter of the year saw 11 states setting new quarterly revenue records for gaming. Among these were New York and Pennsylvania, two of the largest commercial gaming markets in the US.
Throughout 2023, a record $14.7 billion was paid to state and local governments in tax contributions from direct gaming tax revenue.
This figure represents a 9.7% increase from 2022 and does not include additional contributions from income, sales, or other taxes.
AGA president and chief executive Bill Miller anticipates that 2024 will be a pivotal year for the US market.
“While gaming’s momentum remains strong, 2024 will be the new baseline for future growth after several years of sports betting legalization and post-pandemic consumer shifts,” Miller said. “Gaming’s continued growth relies on maintaining our commitment to innovation and responsibility.”
Rhode Island’s igaming launch contributed to a record first quarter
In March, Rhode Island became the seventh US state to launch igaming, with Bally’s Corporation’s online casino going live.
US igaming grossed a record $2 billion in the first quarter, a 26.1% year-on-year increase. The AGA attributed this rise to the contribution from Rhode Island’s igaming launch.
Both retail and online gaming in the US grew in the first quarter, although at slower rates than previous quarters.
Retail gaming accounted for 70.7% of the total first-quarter revenue with $12.3 billion, marking a year-on-year increase of only 0.3%.
The AGA attributed this stagnation to adverse weather early in the quarter. Online gaming achieved its highest-ever share of total revenue at 29.3%.
Americans bet a quarterly record of $36.9 billion on sports in the first quarter, generating $3.3 billion in revenue, a 22% year-on-year rise.
The AGA credited new market launches in states like North Carolina and Vermont for this increase.
Miller said: “As gaming expands, more communities than ever are benefitting.
We are proud to create jobs across the country, provide world-class entertainment experiences that offer safe alternatives to the pervasive illegal gambling market and generate tax revenue to support critical public projects.”
Leading US brands report strong first-quarter results
The AGA’s announcement of a record first quarter was bolstered by growth among top US brands.
DraftKings, for example, reported a 52.7% year-on-year rise in revenue to $1.2 billion, up from $769.7 million in the same quarter last year.
Following its strong first-quarter performance, DraftKings raised its full-year revenue guidance to between $4.8 billion and $5 billion, and its adjusted EBITDA target to between $460 million and $540 million.
FanDuel, owned by Flutter Entertainment, achieved over $1.4 billion in first-quarter revenue, with a record igaming gross gaming revenue market share of 27%.
Flutter chief executive Peter Jackson said: “We have had an excellent start to the year.
In the US, FanDuel’s top line momentum is translating into strong growth in US adjusted EBITDA and market share gains.
We are focused on continuing to expand our player base, market share, and embedding future profits within our business through disciplined investment.”