Commercial Gaming Revenue In U.S. Sets Second Quarter Record
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The state of gaming in the U.S. is strong and growing by leaps and bounds.
The nation’s commercial gaming revenue reached $13.6 billion in the second quarter of 2021, marking a new industry record, according to a news release on Tuesday by the American Gaming Association.
Breaking 2019 Record
The total bested the previous record of $11.1 billion set in the third quarter of 2019 and topped 2021’s first quarter by more than 22%.
With nearly $24.8 billion generated to date, 2021 is close to surpassing 2020 full-year revenue ($30 billion) and on track to overtake 2019 ($43.6 billion) as the highest-grossing year ever for commercial gaming revenue.
“These first-half results are truly remarkable. It is even more impressive when you consider commercial gaming revenue was at its lowest point ever just a year ago,” AGA President and CEO Bill Miller said in a news release. “This is a testament to our resilience and commitment to providing customers safe environments and world-class entertainment experiences.”
At the state level, 22 out of 25 commercial casino states saw quarterly gaming revenue increases in Q2 2021 compared to the second quarter of 2019.
The majority (19 of 25) of commercial best online casino sites outperformed their first half of 2019. While growth in sports betting and iGaming buoyed the gaming industry over the last year, record brick-and-mortar casino revenue — up nearly 10 percent from its previous high in Q3 2019 to $11.8 billion — is now strengthening the industry’s record-setting recovery.
Loosening Restrictions
This results from easing capacity and amenity restrictions because of the coronavirus pandemic, coupled with continued consumer demand.
While three-quarters of commercial casinos began Q2 capped at 50 percent capacity or less, nearly every commercial casino had returned to full capacity by the end of June.
Sports betting revenue declined 8% from the previous quarter to $889 million because of a quieter sports calendar. Despite this, the first half of 2021 has already generated more sports betting revenue ($1.8 billion) than all of 2020 ($1.5 billion), according to the AGA’s Commercial Gaming Revenue Tracker.
“The continued expansion of sports betting and growth of online gaming marks a new era for our industry. It has redefined how Americans see and interact with gaming. Fans are engaging in a new way with their favorite teams and sports. The legal market is providing a safe alternative to illegal offshore operators,” Miller said on a conference call.
“Since the start of 2020, 18 states and DC have legalized or launched sports betting, bringing the reach of the legal market to nearly 150 million Americans. I’ve said it before, but I’m hard-pressed to come up with any issue that has been as resoundingly adopted by states in such a short period. We need to ensure sportsbooks have the legal certainty needed to operate efficiently and remove market hurdles, like the antiquated federal excise tax. As we eagerly await the return of football, I anticipate the numbers we’re seeing today will pale in comparison with what’s to come.”
iGaming Up
iGaming revenue also had a strong second quarter, achieving a new quarterly revenue record of $901 million, up 15 percent from the first quarter of 2021.
“The past 18 months have proven that this industry can persevere through hard times while remaining dedicated to our customers and communities,” Miller said. “COVID-19 is not yet in the rearview mirror, but I’m confident the record first half of 2021 has laid a strong foundation for the industry’s full recovery.”
Currently, 30 states and the District of Columbia feature operational commercial gaming markets in Q2 2021, including casino gaming, sports betting, and iGaming.
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