The U.S. commercial gaming industry soared to new heights in 2024, pulling in a record-breaking $71.92 billion, marking its fourth straight year of growth. A report from the American Gaming Association (AGA) shows that while the sector expanded by 7.5% from 2023, signs of a slowdown are beginning to emerge, particularly in sports betting.
With tribal gaming revenue yet to be added, total U.S. gaming revenue is on track to approach an astonishing $115 billion. But even as the numbers climb, December’s decline in sports betting hold rates signals a possible shift in momentum.
Traditional Casinos Hold Strong, But Online Gaming Gains Ground
Brick-and-mortar casinos are still the backbone of the industry, bringing in $50.32 billion—roughly 70% of the total commercial gaming revenue. Slots were the main driver, pulling in $36.06 billion, a modest 1.6% increase from the previous year. Table games, however, took a hit, slipping 1.7% to $10.14 billion.
Online gaming, though, is growing at an incredible pace. The sector, which includes online casinos and sports betting, accounted for 30% of total revenue, pulling in $21.54 billion.
- iGaming (online casino games) surged 28.7% year-over-year to $8.40 billion.
- Sports betting revenue climbed 25.4%, reaching $13.71 billion.
- Americans wagered a record $147.91 billion on sports, with 95% of bets placed online.
December’s unexpected 2% revenue drop, largely due to lower-than-expected sportsbook hold rates, could be an early indicator of market volatility.
States Cash In, But Growth Varies
The gaming boom isn’t evenly distributed. Of the 36 commercial gaming jurisdictions, 28 reported record-breaking annual revenues. However, some states stood out with eye-popping growth.
- Nebraska: Revenue skyrocketed 60.1%, thanks to new casino openings.
- Virginia: Saw a 32.0% increase, fueled by expanding gaming options.
- Illinois: Traditional casino gaming revenue jumped 11.0%.
On the sports betting front, Illinois overtook New Jersey to become the second-largest U.S. market, boasting a 21.1% growth rate. Massachusetts, meanwhile, surged 38.8%, moving into the seventh spot nationwide.
While most regions saw record gains, Las Vegas Strip revenues declined by 4.4%, signaling possible market saturation or shifting consumer habits. However, other Nevada gaming markets showed resilience:
- Downtown Las Vegas jumped from the 17th to 13th largest gaming market.
- Reno-Sparks climbed to the 11th spot.
- Boulder Strip remained the 10th largest.
iGaming: The Fastest-Growing Segment
Online gaming continues to explode, with total revenue reaching $8.41 billion—a 28.7% year-over-year increase.
- Pennsylvania remains the country’s largest iGaming market, generating $2.71 billion (+28.5%).
- Michigan and New Jersey both surpassed $2 billion in annual online gaming revenue.
- Rhode Island launched its iGaming market in early 2024, further expanding the industry.
The final quarter of 2024 set an iGaming record, raking in $2.38 billion (+33.1% YoY), proving that online gambling is no longer just a niche market—it’s a major force.
The Price of Illegal Gambling
Despite the industry’s strong legal growth, illegal gambling continues to be a major concern. AGA President and CEO Bill Miller didn’t mince words about its impact:
“Illegal operators cost the legal industry $44.2 billion in lost revenue and cheated states out of $13.3 billion in tax money.”
He called for tougher enforcement, pointing out that illegal operators exploit regulatory loopholes and confuse consumers about what’s legal and what’s not.
Tribal gaming also remains a key part of the industry’s landscape. Jason Giles, Executive Director of the Indian Gaming Association, highlighted its importance:
“Indian gaming generated over $42 billion in gross revenues, which directly benefits tribal communities and citizens.”
The Future of U.S. Gaming
Chicagoland cemented itself as the third-largest gaming market in the U.S., helped by new casino openings that boosted its growth.
With online gaming and sports betting continuing their rapid ascent, states will have to balance market expansion with regulatory oversight. And while overall numbers remain strong, the December dip in revenue raises questions about whether the industry’s red-hot growth streak is finally cooling off.
Leave a Reply