The U.S. gambling industry had its best year ever in 2023, winning $66.5 billion from gamblers, according to the latest report from the American Gaming Association (AGA). This represents a 10% increase from the previous year, which was also a record-setting year. The industry’s strong performance was driven by the growth of sports betting, internet gambling, and in-person gambling.
Sports Betting Leads the Way with $10.9 Billion Revenue
Sports betting was the fastest-growing segment of the U.S. gambling industry in 2023, generating $10.9 billion in revenue, up 44.5% from 2022. Americans legally wagered $119.8 billion on sports, up 27.8% from the previous year. The expansion of sports betting markets across the country contributed to this growth, as five new states – Kentucky, Maine, Massachusetts, Nebraska, and Ohio – launched legal sports betting in 2023. By the end of the year, Massachusetts and Ohio became the top 10 sports betting states by revenue, while New Jersey and Illinois surpassed $1 billion in annual sports betting revenue for the first time. New York topped all states with $1.69 billion in sports betting revenue, thanks to its online-only model.
Internet Gambling Grows by 22.9% to $6.17 Billion Revenue
Internet gambling also saw a significant increase in 2023, generating $6.17 billion in revenue, up 22.9% from 2022. Internet gambling includes online casino games, online poker, and online lottery. While Michigan and New Jersey each generated $1.92 billion in annual internet gambling revenue, Michigan edged out New Jersey by just $115,500 to become the largest internet gambling market in the country. Other states that offered internet gambling in 2023 were Delaware, Nevada, Pennsylvania, and West Virginia.
In-Person Gambling Remains the Bread and Butter of the Industry with $45.8 Billion Revenue
In-person gambling remains the main source of revenue for the U.S. gambling industry, accounting for $45.8 billion in 2023, an increase of 3.8% from 2022. In-person gambling includes slot machines, table games, and other casino games. Slot machines brought in $35.51 billion in 2023, an increase of 3.8% from the previous year. Table games brought in $10.31 billion, up 3.5%. Other casino games, such as bingo, keno, and racetrack casino games, brought in $1.01 billion, up 4.1%.
U.S. Gambling Industry Shows Resilience and Growth Despite Economic Challenges
The U.S. gambling industry’s record-breaking performance in 2023 demonstrates its resilience and growth potential, despite the economic challenges posed by inflation, rising costs, and labor shortages. The industry also contributed to the economic recovery by creating jobs, generating tax revenue, and supporting local communities. According to the AGA, the U.S. gambling industry supported 1.8 million jobs, paid $11.3 billion in taxes, and donated $400 million to charitable causes in 2023.
The AGA’s report covers the U.S. commercial casino industry, which includes 465 casinos in 25 states. The report does not include the revenue figures from tribal casinos, which are expected to be released separately later this year. When combined, the total revenue from the U.S. gambling industry is estimated to approach $110 billion for 2023.
