The global gambling industry saw a huge setback to $193.3 billion during the 2020 pandemic but has since rebounded to an estimated $305.8 billion by 2024.
This recovery is fueled by the booming online gambling sector, projected to reach $127.3 billion by 2027, growing at an 11.3% CAGR.
The US market follows this trend, with 2024 commercial gaming revenue up 7.5% year-over-year, reaching $46.93 billion by August. Online gaming has notably surged, contributing $1.98 billion in the first quarter alone.
Let’s explore more about it.
Casino Earnings Summary – US vs. the World
Looking at the latest data, US casinos generated $66.5 billion in 2023, which marked their best year ever when combining traditional commercial gaming and online casino revenue. The global casino market was estimated at $292.1 billion in 2023, putting the United States at just under a quarter of the global casino revenue.
Overview of US Casino Gambling Revenue
We will first examine the revenue generated by casino operators in the United States. As the year-to-date information on gaming revenue is still being compiled, we will use the 2023 numbers from the American Gaming Association.
Total Revenue Breakdown
As noted, the US casino industry reached a new peak in 2023. Total gambling industry revenue reached a record $66.5 billion, about a 10% increase from the $60.42 billion figure from 2022.
When comparing year-over-year gambling data even further, there is a clear trend of increasing both land-based and online casino revenue by state and nationwide.
Land-Based Casinos
Despite the consistent rise of online gambling revenue, land-based casinos remain the backbone of the US gambling industry, accounting for a significant portion of the overall revenue in 2023.
Slot machines alone generated $35.51 billion, which marked a 3.8% increase from the previous year. Table games brought $10.31 billion, reflecting a 3.5% rise. Some of the key factors that have driven this growth include:
- Better Experiences: Upgraded amenities and diverse entertainment options have drawn more patrons.
- Tourism Boost: Increased tourist arrivals in major hubs, such as Las Vegas, Nevada, have clearly played a role when looking at casino revenue by state.
- Marketing Initiatives: Targeted campaigns have attracted a wider audience, with gambling platforms sponsoring and gaining ad space across major sports leagues in the States.
Online Casinos
The online casino segment is rapidly expanding, according to statistics from the American Gaming Association. Casino monthly revenue shows that the online sector contributes 25 to 30 percent.
Key developments include convenience and accessibility, combined with the expanding technological integration in all spheres, including gambling. Mobile apps and high-speed internet facilitate seamless user experiences.
State legislation also plays a role as more states have legalized online gambling. Each of these factors reflects long-term trends; hence, it’s safe to say we will reach a point where the majority of gaming revenue is produced from casino sites and online sports betting markets.
Regional Analysis
Regional disparities are, of course, well present within the US casino industry.
The classic gambling hubs haven’t changed and likely won’t anytime soon. Some of the highlighted distinct trends include:
- Las Vegas, Nevada: Continues as the leader, drawing 40.8 million visitors in 2023 with its staple blend of gaming and luxury. In 2023, Las Vegas Strip casinos reported a record $8.9 billion in gaming revenue, a 7.4% increase over 2022.
- Atlantic City, New Jersey: Despite the rising competition, Atlantic City remains a vital hub. The nine casinos in the Jersey hub have collectively reported a gross operating profit of $744.7 million in 2023, a small decline of 1.6% from 2022.
- Emerging Markets: Regions like the Midwest and Southeast have started to gain prominence due to increased investment in casino infrastructure and targeted regional tourism strategies.
Overview of Casino Gaming Revenue in Other Countries
The global gambling scene mostly follows the same trends as the US. In terms of revenue generated, the global casino market is on track to exceed $300 billion per year.
Much like in the US, online casinos have surged in popularity due to convenience and technological advances. Land-based casinos continue to recover after the pandemic.
The staple face-to-face entertainment remains the focal point of commercial casinos, which will likely never put them out of fashion.
Regional Analysis
- Asia-Pacific: Thanks to Macau and Singapore, the Asia-Pacific region remains a focal point of the global casino industry. Macau has become the “Gambling Capital of the World” in the eyes of many players. The numbers speak for themselves, as the casinos in Macau have generated approximately $22.3 billion.In Singapore, the industry generated over $3.8 billion in the same period, with Marina Bay Sands and Resorts World Sentosa leading the charge.
- Europe: The casino market in Europe is diverse, and every country has its unique regulatory environment and approach regarding legality and tax revenue.The UK is the leader in the European casino sector with a gross gambling yield (GGY) of £15.12 billion from April 2022 to March 2023 The remote casino sector made significant contributions here, generating over £4 billion. Germany and Italy also present significant opportunities for growth, particularly in the online gambling space.
- Canada: The gambling industry in Canada is a vibrant and evolving market, and provincial regulations are influencing it quite a bit. In 2023, the Canadian gambling sector generated a gross gaming revenue (GGR) of approximately CA$ 14.2 billion, including both land-based and online gambling platforms.Ontario has a regulated iGaming market, and based on Statista data, it scored revenues of $1.26+ billion from April 2022 to March 2023.
- Australia: The Australian casino industry remains as robust. The country has integrated resorts that play a crucial role in this department. Based on multiple local market reports, we are looking at around AU$6 billion in 2023 revenue nationwide. Australia is home to major casino operators such as Crown Resorts and The Star Entertainment Group.
Casino Games That Generate Most Revenue in the US and Worldwide
Looking at the latest year-to-date info, casino slots are leading the charge in terms of gaming revenue generated.
Slot machines have generated approximately $9.06 billion in Q2 alone across the nation, marking a 1.9% rise from the previous year.
These figures are hardly surprising, considering that casino slots traditionally account for 70% of gaming revenue at most operational casinos in America and typically take up the majority of the total gaming catalogue.
Looking at table games, blackjack remains a crowd favourite, bringing in over $2.5 in gaming revenue in Q2 in the United States alone.
Looking at specific figures, this is a 2.5% rise compared to revenue generated at the end of the previous year.
How Much Do Casinos Generate in Tax Revenue?
Focusing on the United States, the AGA report indicated that the gambling industry has driven over $10 billion in tax revenue from $46.93 billion in gaming revenue generated in the first eight months of the year.
The allocation of tax revenue varies between states, but in most cases, these funds are used to fund public services like education, infrastructure, and health programs.
In Pennsylvania, a substantial portion of gaming tax revenue is used for property tax relief and economic development initiatives. Nevada took a similar approach by using gaming taxes to fund public safety and educational programs.
Once again, there are significant variations between states in terms of specific tax rates. States with well-established gaming industries, like Nevada, tend to have lower tax rates because they encourage sector investment and expansion.
US’s Leading Role in a Growing Global Gambling Industry
In conclusion, the online gambling industry is on an upward trajectory, with gaming revenue climbing year after year. The market has surpassed hundreds of billions of dollars, with the US leading the way, accounting for nearly a quarter of global earnings.
While it’s hard to predict exactly what the future holds, the recent surge in both land-based and online gaming suggests that growth is here to stay. If these trends continue, we’re likely to see the industry expand even further, potentially at an even faster pace.
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