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Sports Betting Helps Commercial Casino Gaming Revenue Reach an All-Time High

Gaming revenue for the U.S. commercial casino industry reached an all-time high of $41.7 billion in 2018, up 3.5 percent from the previous year, according to data released in the American Gaming Association’s (AGA) State of the States 2019: The AGA Survey of the Commercial Casino Industry.

Key findings from the State of the States 2019 report include:

  • The commercial casino sector—with 465 casinos—logged its fourth consecutive year of gaming revenue growth and outpaced the national economic growth rate in 2018;
  • The industry generated $9.7 billion in gaming taxes for state and local governments, a number that does not account for the billions more in sales, income and other taxes that benefit communities; and
  • Half of the 24 states with commercial casinos reported record annual gaming revenue with nearly every state seeing gains in 2018, contributing to the strength of local economies across the country.

“Year after year, the commercial casino industry has reaffirmed its role as an economic powerhouse in the United States,” said Bill Miller, president and CEO of the American Gaming Association. “More people than ever are experiencing the economic and social benefits of gaming in their communities, due in part to the expansion of legal sports betting across the country.”

The rapid expansion of legalized sports wagering following the Supreme Court decision to overturn the Professional and Amateur Sports Protection Act (PASPA) in May 2018 played a role in the industry’s record year. Total industrywide revenue from sports betting grew to $430.2 million in 2018, up from $261.3 million in 2017. AGA anticipates this growth to continue as additional states legalize and regulate sports wagering.

All though it has reported large revenues, the findings stated that legal and regulated sports betting barely scratched the surface of an entrenched black market—comprised of offshore sportsbooks and street bookies—previously estimated to be worth as much as $150 billion in annual wagering handle. Indeed an area for commercial casinos that could bring in significantly larger numbers in 2019 as more states continue to add legalized sports betting and sportsbooks within their jurisdictions.

“Growth in the commercial gaming sector enables the industry to continue to reinvest in communities, enhance partnerships with small businesses and nonprofits and provide career opportunities for nearly two-million American workers,”  said Miller.

Post-PASPA revenue growth May-Feb

Earlier this year we reported on total revenue figures since the repeal of PASPA, which exceeded $500M and with New Jersey accounting for $125.5M of that growth. In 2019 we will see these numbers continue to grow with new states entering the sports betting space:

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