Viva Las Vegas: Commercial casinos revealed record revenues of $66.5 billion

American commercial casinos won $66.5 billion from gamblers in 2023, the best year ever for the industry, according to data released Tuesday by the national trade association.

The American Gaming Association said the total was 10% higher than 2022, which itself was a record-breaking year.

When revenue data from tribal-owned casinos is released separately later this year, it is expected to show that overall casino gambling brought in nearly $110 billion for U.S. casino operators in 2023.

All this happened in a year in which inflation, although receding, still kept the costs of food and energy higher than before.

“From the land-based casino experience to online options, demand for gaming among American adults is at an all-time high,” said Bill Miller, president and CEO of the association.

Early last year, when the group provided its annual statistical assessment, “inflation was high, uncertainty was in the air. Forecasters have been unable to agree on the effects these challenges might have on discretionary income,” Miller said.

As the years passed, “inflation began to cool, consumers began to spend and the Federal Reserve kept rates stable,” he added. “The result was a record-breaking year for our industry.”

Not even the pre-holiday shopping crisis has deterred gamblers from betting: Casinos won $6.2 billion in December and $17.4 billion in the fourth quarter of 2023, both setting records.

Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University in New Jersey, which studies the gambling industry, said sports betting is still new enough that it could be attractive even to those watching their budgets.

“As a form of entertainment, legal sports betting could represent a new and innovative experience for many customers and, with its relatively low entry cost, could be attractive to them even if their discretionary spending budget is limited,” he said. stated.

In-person gambling remains the industry’s bread and butter. Slot machines grossed $35.51 billion in 2023, an increase of 3.8% from the previous year. Board games grossed $10.31 billion, up 3.5%.
Sports betting generated revenue of $10.92 billion, up 44.5%. Americans legally bet $119.84 billion on sports, up 27.8% from the previous year.

Five new sports betting markets that became operational in 2023 – Kentucky, Maine, Massachusetts, Nebraska and Ohio – contributed to this and generated combined revenue of $1.49 billion.

By the end of the year, Massachusetts and Ohio established themselves among the top 10 sports betting states in the country by revenue, New Jersey and Illinois surpassed $1 billion in annual sports betting revenue for the first time, and New York had topped all states with $1.69 billion.

Internet gambling generated $6.17 billion, up 22.9%. While Michigan and New Jersey each generated $1.92 billion in annual Internet gambling revenue, Michigan outperformed New Jersey by just $115,500 to become the largest Internet gambling market in the country. Pennsylvania was third with $1.74 billion in annual revenue.

Other states that offer Internet gambling include Connecticut, West Virginia and Delaware; Nevada only offers online poker.

Casinos paid about $14.42 billion in gambling taxes last year, up 9.7% from the previous year.
Nevada remains the nation’s largest gambling market, with $15.5 billion in revenue. Pennsylvania is second with $5.86 billion, followed closely by Atlantic City with $5.77 billion.

New York is fourth with $4.71 billion, followed by Michigan with $3.58 billion; Ohio at $3.31 billion; Indiana at $2.82 billion; Louisiana at $2.69 billion and Illinois at $2.52 billion.

Resorts World Casino in New York has reclaimed the title of the best-performing U.S. casino outside of Nevada. It was followed by the MGM National Harbor near Washington, D.C., the Encore Boston Harbor and the Borgata in Atlantic City.

Of the 35 states that have commercial casinos, 31 saw an increase in revenue last year.
Jurisdictions where revenues decreased were Florida (-0.4%); Indiana (-2.3%) and Mississippi (-3.5%). Washington, D.C.’s sports betting-only market saw a more significant decline, with revenue lagging 2022 by 17.6%, the largest decline in the country.


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