A strong finish in March pushed U.S. commercial gaming revenue to a quarterly record of $17.67 billion in the first quarter of 2024 according to the American Gaming Association (AGA).
This figure represents a 5.6% increase from Q1 2023 and edged out the previous record of $17.64 billion that was recorded in Q3 2023. Q1’s growth marked the 13th consecutive quarter of year-over-year growth.
Eleven of the 33 states that submitted complete data for the opening months of 2024 reported having their best-ever quarters in Q1 2024. This included Pennsylvania and New York, which posted quarterly revenue of $1.7 billion and $1.3 billion respectively.
“While gaming’s momentum remains strong, 2024 will be the new baseline for future growth after several years of sports betting legalization and post-pandemic consumer shifts,” said AGA President and CEO Bill Miller. “Gaming’s continued growth relies on maintaining our commitment to innovation and responsibility.”
Strides made in retail and online gaming
Both land-based and online gaming realized year-over-year growth in Q1 although growth was at a slower rate than in previous quarters.
Land-based gaming, inclusive of casino slots, table games, and retail sports betting, generated revenue of $12.49 billion, up 0.1% compared to Q1 2023. Online gaming, comprising igaming and online sports betting, set a quarterly record of $5.16 billion, up 19.3% year-over-year.
At 29.3%, online gaming contributed a record share to the total commercial gaming revenue in Q1.
Land-based venues impacted by adverse weather conditions
Brick-and-mortar casinos exhibited modest growth of 0.3% in Q1 despite a slow start in January caused by adverse weather conditions. Casino slot machines and table games combined to generate $12.34 billion in the quarter, driven by a 3% year-over-year growth in table games which offset a slight year-over-year decline in casino slot revenue.
Looking at revenue on a state level, 15 out of 27 states saw land-based revenue decrease year-over-year in Q1. Despite this, all but three of the states reporting an overall decline experienced annual revenue growth in March highlighting the impact of January’s weather conditions.
Sports betting starts the year strong off the back of new state launches
New launches in Vermont and North Carolina helped to propel sports wagering revenue to a quarterly record of $3.33 billion, up 22% compared to Q1 2023. North Carolina made a particularly strong start to life as an online betting market, generating revenue of $66.5 million in its first partial month of operations.
The sports betting sector generated record revenue in Q1 despite favorites prevailing in major sporting events like the Super Bowl, March Madness and the Masters during the quarter.
Established igaming states report quarterly record revenue
All six established states igaming states set quarterly revenue records in the first quarter of the year. Growth across the different states led to record revenue of $1.98 billion in Q1 2024, up 26.1% year-over-year.
iGaming revenue growth was also boosted by the launch of Rhode Island as the nation’s seventh igaming state in March. Bally’s Casino is the sole iGaming operator in the Ocean State.
The AGA also noted the impact that Rush Street Interactive had on iGaming in Delaware during Q1. The igaming supplier helped to expand revenue by over 218% year-over-year to $11.9 million during its first quarter of operations.
