In a remarkable display of growth, the U.S. commercial gaming industry shattered previous records by amassing $71.92 billion in revenue for 2024. This achievement marks the fourth consecutive year of revenue expansion, surpassing 2023’s figure by 7.5%.
Traditional Casinos Maintain Dominance Amidst Online Surge
Brick-and-mortar casinos continue to be the cornerstone of the gaming sector, generating $49.78 billion in 2024. This figure represents a modest 0.8% increase from the prior year. Slot machines were the primary contributors, bringing in $36.06 billion, a 1.6% uptick. In contrast, table games experienced a slight decline of 1.7%, totaling $10.14 billion.
Despite the steady performance of physical casinos, the online gaming segment is rapidly expanding. In 2024, online gaming, which includes iGaming and online sports betting, accounted for $21.54 billion, making up 30% of the total gaming revenue.
Sports Betting and iGaming: Catalysts for Growth
Sports betting has emerged as a significant growth driver within the industry. In 2024, Americans legally wagered $147.91 billion on sports, a 23.6% increase from the previous year. This surge led to sports betting revenue reaching $13.71 billion, marking a 25.4% year-over-year growth.
The iGaming sector also witnessed substantial growth, with revenue soaring by 28.7% to $8.41 billion in 2024. This increase underscores the shifting preferences of consumers towards digital gaming platforms.
State-Level Highlights and Market Dynamics
At the state level, 28 out of 36 commercial gaming jurisdictions reported increased revenues in 2024. Notably, Nebraska, Virginia, and Illinois experienced significant gains in traditional casino gaming, with revenues increasing by 60.1%, 32.0%, and 11.0% respectively. These upticks were largely driven by the inauguration of new gaming establishments.
In the sports betting arena, Illinois surpassed New Jersey to become the second-largest market in the U.S., with revenue growth of 21.1%. Massachusetts also saw a remarkable 38.8% increase, elevating it to the seventh position among U.S. sports betting markets.
While the Las Vegas Strip maintained its status as the nation’s leading gaming market, it experienced a 4.4% decline in revenue for 2024. Conversely, other Nevada markets such as Downtown Las Vegas and Reno-Sparks reported growth, climbing to the 13th and 11th largest U.S. gaming markets, respectively.
Economic Contributions and Future Outlook
The commercial gaming industry’s expansion has significantly bolstered public finances. In 2024, operators contributed an estimated $15.66 billion in gaming taxes to state and local governments, reflecting an 8.5% increase from the previous year.
Looking ahead, the industry’s trajectory appears promising, with continued growth anticipated in both traditional and online gaming sectors. However, challenges such as market saturation and regulatory changes may influence future performance. Stakeholders will need to navigate these dynamics to sustain the momentum achieved in recent years.
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