US commercial gaming reaches a record high in Q3 revenue, fueled by significant online growth.

US Commercial Gaming Achieves Record Q3 Revenue in 2024, Boosted by Online Growth

The American Gaming Association (AGA) has reported that Q3 2024 commercial gaming revenue reached $17.71 billion, setting a new record for the highest-grossing third quarter in industry history. This milestone extends the industry’s streak to 15 consecutive quarters of annual revenue growth.

Key Highlights:

• Q3 Revenue: $17.71 billion, marking a record high for Q3.
• Year-to-Date Total: $53.24 billion, an 8.0% increase from 2023, positioning the industry for a fourth consecutive record-breaking year.
• Online Growth: Online gaming contributed 29% of total revenue, driving overall growth.
• Traditional Gaming: Brick-and-mortar casinos saw a slight decline, with revenue down 0.9% year-over-year to $12.38 billion.

Online Gaming Leads Growth

Revenue from iGaming and online sports betting reached $5.14 billion in Q3, representing 29% of total commercial gaming revenue, a significant increase from Q3 2023.

• iGaming: Generated $2.08 billion, up 30.3% year-over-year.
• Sports Betting: Legal sports betting revenue surged 42.4% to $3.24 billion, driven by market expansions in Kentucky, Maine, North Carolina, and Vermont.

Traditional Gaming Performance

While brick-and-mortar casinos remain the industry’s largest segment, generating $12.38 billion in Q3, this represented a slight 0.9% decline year-over-year. Despite the dip, new casino openings continue to support the segment’s performance.

Tax Contributions

Gaming operators contributed $3.79 billion in taxes to state and local governments in Q3 2024, an 8.9% increase compared to the previous year.

Industry Momentum

David Forman, AGA Vice President of Research, commented:
“Q3 2024 continued gaming’s momentum from the first half of the year, with online casino and sports betting driving strong growth. At the same time, new brick-and-mortar casino openings bolstered traditional gaming, which still accounts for the bulk of industry revenue. More than a quarter of commercial revenue now regularly comes from online sources, raising the importance of continued sustainable growth with consumers in those states.”With September 2024 marking 43 consecutive months of year-over-year revenue growth, the US gaming industry is poised to close 2024 as its fourth consecutive record year.