Online Casinos and Sports Betting Propel Commercial Gaming Industry to Record High
Online casino gaming and sports wagering propelled the U.S. commercial gaming sector to a record peak in 2024.
On Wednesday, the American Gaming Association (AGA) announced that in 2024, gamblers and bettors suffered greater losses than in any prior year. The revenue from commercial gaming reached over $71.9 billion, reflecting a 7.5% increase compared to the previous year.
2024 signified the fourth consecutive year of record revenue. Although the COVID-19 pandemic was first attributed to the remarkable growth, with suppressed demand and Americans witnessing their bank accounts increase due to government aid, iGaming and the ongoing growth of legal sports betting have sustained the surge in recent years.
The AGA annual report highlights that although traditional gambling, or physical casino gross gaming revenue (GGR), grew by under 1%, sports betting and iGaming revenue increased by 25.4% and 28.7% respectively in comparison to 2023.
"In 2024, Americans embraced the diverse legal gaming options available to them — whether in casinos, at sportsbooks, or online — leading to another record-setting year for our industry,” said AGA President and CEO Bill Miller. “As we build on this success, the AGA remains committed to fostering additional growth that benefits consumers, operators, and communities alike.”
The AGA report calculated total earnings from commercial casinos, both retail and online sports betting, as well as iGaming. Revenue from tribal operations in gaming was excluded, as was lottery gaming.
Casino Sector Discovers 'Unmatched Achievement'
Legitimate gambling is more prevalent in the US than it has ever been. A total of 27 states host commercial casinos, 39 states along with Washington, DC permit legal sports betting, and seven states allow legal iGaming featuring online slots and interactive table games.
The various gaming choices resulted in unprecedented income for the commercial gaming sector, which consequently provided historic tax revenue to state and local authorities. The AGA projects that commercial gaming operators contributed nearly $16 billion in taxes in 2024.
“Commercial gaming continues to demonstrate unprecedented success,” Miller added. “Much of this growth has been driven by the continued expansion in online gaming and sports betting.”
Although it trails behind iGaming and sports betting in yearly growth, Miller asserted that the legacy gaming sector is still robust.
"Traditional brick-and-mortar operations have shown their resilience against macroeconomic headwinds, particularly in Las Vegas, which has experienced months of softer revenue in late 2024 compared to the previous year’s highs,” Miller explained.
The leading gaming lobbyist for the nation ended by stating that the figures for 2024 indicate the industry is experiencing “increasing public support.”
Uncontrolled Gaming Continues to be Essential
Unregulated and thus unlawful online gambling sites continue to be a major concern for the AGA, which persistently urges federal and state law enforcement bodies to take action against these internet operations.
A rising danger to the regulated iGaming sector is the contentious "sweepstakes" platforms, which present themselves as social gaming venues. Critics, on the other hand, argue that they amount to unlawful gambling. The AGA believes that unregulated skill games pose a threat to physical casinos. The slot-like machines are prevalent across various states, such as Pennsylvania, Missouri, Texas, Illinois, and Wyoming.
“[Unregulated gaming] builds nothing of lasting economic value and undermines both the industry’s integrity and the community’s well-being,” Miller declared.
