The gaming industry contributes $14,4 billion in taxes
Commercial gaming revenue in the United States hit an annual record of $66,5 billion in 2023, according to the American Gaming Association's (AGA) Commercial Gaming Revenue Tracker. The total surpasses the previous 10 high of $2022 billion by 60,5%, marking the sector's third consecutive year of record revenue.
The year was marked by quarterly revenue of $17,4 billion in Q4 2023, anchored by $6,2 billion in revenue in December, the highest grossing month in industry history.
"From the land-based casino experience to online options, the demand for gaming among American adults is at an all-time high", he has declared Bill Miller, president and CEO of AGA. “Sustaining our momentum will require unified industry efforts to combat illegal operators and increase responsible gaming efforts in tandem with the growth of the legal market".
The commercial gaming industry continues to evolve, with online gaming accounting for nearly a quarter (24,7%) of commercial gaming revenue nationwide in 2023, a new annual high. Looking at each sector:
- Traditional game: brick-and-mortar casino slots and table games brought in a record $49,4 billion in 2023, up 3,3% from 2022. Statewide, 19 of 27 traditional gaming markets reported revenue record annuals.
- Sport bets: in 2023, sports betting hit new records for revenue ($119,8 billion) and margin ($10,9 billion), up 27,8 percent and 44,5 percent, respectively. This growth has largely been fueled by continued maturation in most existing markets and several new territories, particularly Massachusetts and Ohio.
- iGaming: 2023 online casino revenue grew 22,9% year over year to $6,2 billion across the six states as iGaming became legal on a large scale.
In 2023, 12 of the top 20 commercial casino gaming markets reported revenue growth compared to the previous year, with the top market, the Las Vegas Strip, posting the strongest year-over-year gains. New Jersey maintained its place as the second-highest-grossing market, while Chicagoland (third) flipped the rankings with the Baltimore-Washington, D.C. market (fourth) and the Mississippi Gulf Coast (fifth) rounding out the top five.
The commercial gaming industry also contributed more than ever to state and local government coffers in 2023. Over the course of the year, commercial gaming operators paid approximately $14,4 billion in direct taxes on gaming revenue, with an increase of 9,7% year-on-year. The industry also contributes billions of dollars in additional taxes to states each year in the form of income, sales, payroll, and various other corporate taxes.
"The success of the game translates directly into the success of the states, cities and countries in which we operateMiller continued. “We are proud to have a presence in 47 jurisdictions across the United States, acting as economic engines, creating jobs and providing the funding that makes public education programs, infrastructure projects, problem gambling resources and more possible".
