The American Gaming Association (AGA) has reported that commercial gaming has achieved a new quarterly revenue record after accomplishing $14.81bn in revenue during the second quarter of 2022.
The AGA’s Commercial Gaming Revenue Tracker highlights that Q2’s revenue beats the previous record set in Q4 2021 by 3.3%. The quarter’s $14.81bn in revenue is also an 8.8% improvement year-over-year.
The association adds that with the $29.16bn produced in H1 2022, a 17.8% YoY increase, a new annual commercial gaming revenue record could be set for the second year in a row.
“Q2’s results mark a 16-month period of gains for commercial gaming,” commented AGA President and CEO Bill Miller.
“With increasingly difficult year-over-year comparisons, our strength through the first half of 2022 reflects sustained consumer demand for legal options, as well as gaming’s record popularity.”
The AGA stated that the industry’s growth rate “softened” throughout Q2, as the monthly YoY gains slowed down – 13.1% in April, 10.7% in May, 2.5% in June – illustrating “stabilizing consumer demand and the return to normal gaming operations one year ago”.
Out of the 31 commercial gaming jurisdictions operating during the same period last year, 22 experienced revenue increases in Q2, with nine states reporting all-time quarterly highs: Arkansas, Iowa, Maryland, Massachusetts, Nevada, New York, Oklahoma, Oregon and Pennsylvania.
AGA sees casino industry drive growth
Of the total Q2 GGR of $14.81bn, slots led the way with $8.7bn (0.2% uptick), followed by table games with $2.54bn (18.2% increase), sports betting with $1.42bn (58.7% improvement), and igaming with $1.21bn (34.3% growth).
Of the total H1 GGR of $29.16bn, slots generated $16.89bn (8.7% YoY rise), tables games produced $4.91bn (28.9% YoY uptick), sports betting accomplished $3.04bn (63.9% YoY increase), and igaming recorded $2.42bn (43.5% growth vs H2 2021).
The AGA noted that traditional casino gaming continues to drive industry success, with quarterly revenue records delivered by both brick-and-mortar slots and table games, “indicating the lingering impact that COVID restrictions had on table games in the first half of 2021”.
In H1, traditional casino gaming generated a revenue of $23.67bn, an 11.7% YoY improvement.
The AGA stated six new state market launches have helped the sports betting sector grow over the last year, while the six operational igaming markets in Q2 narrowly beat the vertical’s previous record set in Q1 2022.
Miller added: “While on pace to set an annual revenue record, we are cognizant of the continued impacts of inflation and labor challenges, as well as marketplace concerns of a potential recession.
“Our members have proven their agility and resilience over the last two years and are well-positioned to face these potential headwinds heading into the second half.”
Tribal gaming success
AGA’s Q2 2022 commercial gaming revenue report follows the recent announcement made by the National Indian Gaming Commission that tribal operators generated $39bn in gaming revenue in 2021, which is an all-time high.
Combined with commercial gaming’s $53bn in revenue, 2021 beat the previous record held in 2019 by 13%.
Miller concluded: “Tribal gaming demonstrated its responsible leadership throughout the pandemic and these record results reflect that commitment.
“The full recovery and ongoing success of tribal casinos goes well beyond the casino floor to support vibrant communities across the country.”