US Second-Quarter Gaming Revenues Bolstered by iGaming

The American Gaming Association has revealed its Commercial Casino Revenue Tracker reports for the second quarter, showcasing an increase in earnings with the help of the online gaming sector. Total gaming revenues were boosted once again thanks to online operators. Retail gaming remained relatively flat, while those with iGaming verticals continued to see an uptick in earnings thanks to its online partners.

Continued Growth with Online Help

Land-based operations seem to be at a standstill as revenue has stabilized. This is not necessarily bad, but we have not seen any continued growth in the commercial sector for quite some time. For states with iGaming, the retail operators with online partners are seeing continued growth thanks to the extra revenue source.

The second quarter reports by the AGA showed that retail gaming from slots, sports betting, and table games came in at $12.38 billion. This was 0.3% less than the earnings from the first quarter of 2023. Annual growth is down by 0.9%, slower than in the first quarter and last quarter of 2022.

On the flip side, online gaming is surging. The sector saw a 44.2% year-over-year increase as online casino gaming and sports betting brought in $3.71 billion. Online revenues were boosted by new sports betting services launching in Kansas, Maryland, Massachusetts, and Ohio within a 12-month time frame.

It’s important to note that the sports betting calendar was light for Q2. There was an online share decline from the first quarter because of this, but the sector still brought in 23% of the quarterly commercial gaming revenue totals.

Online Gaming Growth Continues

States that feature online casino gaming continue to grow thanks to this sector’s popularity. The iGaming vertical continues to climb, with Q2 reporting $1.48 billion in earnings. Compared to Q2 2022, the totals are up by 22.6%—the amount tied to the nation’s single-quarter record set in Q1 2023.

New quarterly revenue records were hit in Connecticut, New Jersey, Pennsylvania, and West Virginia. The earnings are so solid that the industry is setting up for another record year for revenues. So far, 2023 has generated $2.97 billion. This is over 22% more than the same time frame in 2022.

Players can access online casino gaming in Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia. Each state offers multiple operators with several licenses in place. New operators or content are being added regularly to give players something different to explore, which helps to add to overall popularity and revenue totals.

Will New States Get in on the Action?

As a handful of states reap the benefits of iGaming, will others decide to follow suit? While many states have legalized sports betting, lawmakers are not as willing to legalize online casino gaming. It has been difficult to see new areas launch slots and table games online, leaving revenues on the table that could benefit casinos nationwide.

The reports by the AGA show how iGaming can benefit commercial operators. Retailers have a secondary source of income for their operations from online casino gaming, which helps to increase the bottom line. It appears lawmakers could review such reports and use the information to push for support regarding iGaming legislation.

It will be interesting to see if the latest revenue totals will bring about change to the iGaming market in the US. It’s clear to see that land-based earnings are stagnant and are not going to grow anytime soon. The world is transitioning to an online industry, and casinos can benefit if given the legal right to do so.