Recent numbers by the American Gaming Association reveal the commercial casino gross gaming revenue (GGR) in the third quarter of 2020. According to the numbers, the gaming industry is on its way to a slow recovery. However, a quarter-on-quarter comparison shows significant increase of the slot games, table games, sports betting, and igaming revenue.
Q3 2020 GGR Improves When Compared to Q2 2020
The American Gaming Association (AGA) revealed on Monday this week the latest commercial gaming revenue numbers for the third quarter ending September 30. In the U.S., commercial casino gross gaming revenue (GGR) reached $9.04 billion in Q3, 2020. This represents a significant increase of 294% when compared to the second quarter.
In contrast, if we compare the Q3 2020 revenue to the number from the same period last year, we observe a decrease of 18.9%. Although the Q3 revenue did not reach by far the levels from last year, the operators were able to reach 81% of the revenue, despite the many capacities and operational limits enforced during the quarter.
Undoubtedly, the pandemic severely impacted the gaming industry and its revenue in Q2 2020 as well as the overall revenue for the first nine months of 2020. However, the industry already started to recover slowly in the second quarter. During Q3 2020, the recovery was aided by the reopening of additional commercial properties.
Table Games and Slot Machines Revenue Increases in Q3
According to the numbers revealed by AGA, 64.9% of the GGR in Q3 was raised by slot machines. Compared to the revenue raised by slot machines in Q2, this represented an increase of 351.5%, generating $5.87 billion.
Here, we cannot miss saying that in Q3 2020, the Ohio market outperformed Q3 2019 and marked increase of 7.5%. According to AGA, quarter-on-quarter increase in slot gaming revenue was also observed in South Dakota (+7.4%), Mississippi (+3.2%), and Arkansas (+1.3%). However, the year-over-year comparison reveals a decrease of 19.3% in slot GGR.
Changing focus to table game revenue, we observe another increase when comparing the results from the third quarter to results from the second quarter of 2020. Table game revenue in Q3 2020 hit $1.57 billion, representing a 447.2% increase when compared to Q2 2020. Furthermore, if we compare the Q3 2020 table game revenue to the same period last year, we observe another increase by 31.2%.
Sports Betting and Igaming Skyrockets in the Third Quarter
Third quarter sports betting GGR this year reached $352.3 million. In a quarter-on-quarter comparison this represents a 448.8% increase from $64.2 million in Q2 2020. Undoubtedly the sports betting GGR was boosted by the recent legalizing of the markets in Colorado, D.C., Illinois, and Michigan. Moreover, the Q3 2020 sports betting revenue represents an increase of 47.1% when compared to the same period last year.
Looking at the third quarter igaming revenue, we observe yet another quarter-on-quarter increase. In Q2 2020, igaming GGR reached $402.7 million, while in the third quarter it hit $435.0 million. This represents an increase of 8.0% since the second quarter. With that in mind, igaming revenue in Q3 2020 increased by 234.2% from Q3 2019. Furthermore, the positive result was undoubtedly boosted by the launch of igaming in West Virginia back in July.
More Than 90% of the U.S. Casinos Have Already Reopened
In a statement, the AGA President and CEO, Bill Miller outlined that the quarterly results are promising. He added that the full recovery of the industry is “dependent on continued public health measures to control prevalence rates“. Furthermore, Miller stressed that urgent Congressional action is needed to provide COVID-19 relief, considering the local and state official’s response towards COVID-19 outbreaks and additional restrictions.
“Our industry continues to prioritize the health and safety of our employees, customers, and communities above all else.”
Bill Miller, AGA President and CEO
According to the statement by AGA, by September 30, more than 9 out of 10 U.S. casinos reopened for business across the country. In other words, out of 466 commercial properties, 94.2% or 439 properties have already reopened. Statewide, 902 commercial and tribal casinos have reopened by the end of Q3 2020. This represents 90.8% of the total casinos in the U.S.