AGA’s May Commercial Revenue Report Showed Continued Growth

The American Gaming Association (AGA) released its Commercial Gaming Revenue Tracker report Wednesday and revealed that in May commercial gaming in the US continued to grow despite a tougher previous comparable period.

Overall Industry Snapshot

AGA outlined that despite the overall macroeconomic challenges, the industry accounted for its three best gaming months in March, April and May, a period in which gaming revenue exceeded $5 billion each month.

Combined, commercial casinos, both land-based and online, and sportsbooks accounted for $5.03 billion in gaming revenue in May to register the second-highest month in history. Compared to April, revenue was marginally up as the increase in land-based gaming of 1.5% was offset by the decrease in sports betting and iGaming with 7.7% and 2.4%, respectively.

Year-over-year, May revenue posted a 7.9% growth – the softest month in terms of growth since February 2021, the month after which the industry was not feeling the pinch of the restrictions. Of all 31 states with commercial gaming, eighteen posted revenue growth.

Despite the soft growth and issues related to the supply chain, labor shortages and inflationary pressures, commercial gaming is firmly on track to achieve another record-setting year after revenue in the first five months of $24.39 billion surpassed revenue for the first five months in 2021 by 20.6%.

Four states, Washington DC, Kansas, Mississippi, and South Dakota are falling behind in revenue for the first five months as compared to the same period in 2021 but in three of them, it was due to tougher than average previous comparable periods as Kansas, Mississippi and South Dakota began easing operating conditions earlier than other states.

Vertical by Vertical

Across verticals, slot machines and table games at land-based gaming venues registered $4.13 billion in revenue to post a marginal 1.4% growth year-over-year and the third-highest month ever. Table games revenue jumped by 10.5% to $873.9 million while slot revenue was marginally down 0.1% at $2.94 billion. 22 of 25 states posted revenue growth through the first five months while year-to-date revenue grew by 13.9% and stood at $19.7 billion.

Sports betting and online casino continued to grow year-over-year. Retail and online sportsbooks registered $487.5 million in revenue, up 78.2% compared to May 2021. The increase was also influenced by the higher number of states allowing sports betting – 26 as compared to 20 and the DC in May last year. Cumulatively, revenue stood at $2.64 billion, an increase of 73.5% against the previous comparable period.

In iGaming, six states – Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia –  accounted for $406.4 million in gaming revenue to post an increase of 30.9% as compared to May 2021 when online casino was allowed in five states.

Cumulatively, online casino revenue for the first five months of 2022 stood at $2.03 billion, up 45.6% from the same comparable period in 2021.