Record Revenue in U.S. Commercial Gaming
The U.S. commercial gaming sector achieved nearly $72 billion in revenue in 2024, as detailed in the American Gaming Association’s recently published “State of the States 2025.” This marks the fourth consecutive year of setting new revenue records.
Continued Growth Amid Challenges
In comparison to 2023, commercial gaming revenue rose nearly 8%, generating over $15 billion in gaming tax revenue. Additionally, 28 states reported their highest annual commercial gaming revenue, as noted in the report. According to AGA Vice President of Research David Forman, this growth trend is expected to persist.
The Appeal of Gaming
“What we’re witnessing is that gaming remains an attractive entertainment choice,” Forman stated. “Although traditional gaming will likely see more normalized growth rates, especially in sports betting, we anticipate continued expansion overall.”
Surprising Revenue Trends
Forman mentioned that revenue trends observed in early 2024 have exceeded expectations, with each month showing some growth, albeit at diminishing rates due to economic uncertainties. Despite initial concerns, April turned out to be the second-best month of the year in terms of national revenue.
Visitor Increase and Key Drivers
Forman highlighted that consumer resilience has pleasantly surprised industry leaders, noting a 5.5% increase in casino visitors in the first four months of the year. The industry grew by just over 6% nationwide, driven primarily by iGaming and sports betting.
The Role of Online Gaming
While traditional gaming continues to grow modestly, the online sector now represents about one-third of total revenue. Forman emphasized that iGaming has risen nearly 30% this year, with robust growth in sports betting, particularly in new markets like New York and Massachusetts. These markets are attracting customers who previously engaged in illegal gambling.
The Future of Gaming in Las Vegas
Dave Schwartz, a gaming historian at UNLV, noted that the evolution of online gaming is changing how Las Vegas resorts market themselves. Historically, gaming was tied to physical locations, but now players can gamble from anywhere. Despite this shift, traditional gaming remains central to the industry, which Schwartz believes will create new opportunities to attract patrons.
