Posted: May 11, 2022, 11:04 a.m.
Last update on: May 11, 2022, 03:12h.
The US commercial casino industry is thriving, despite near-unprecedented inflation and a collapsing economy.
The American Gaming Association (AGA) reported today that gaming revenue was approximately $14.32 billion in the first quarter of 2022. Transportation includes revenue from land-based casinos, iGaming and sports betting.
From January to March 2022, the same three months of last year exceeded by almost 29%. The first quarter of 2022 also easily exceeded the three-month period in 2019 by 34%.
Consumers continue to seek gaming entertainment options in record numbers,” said AGA President and CEO Bill Miller. “Strong first quarter results build on the industry’s record year of 2021 despite continued headwinds from supply chain constraints, labor shortages and the impact of soaring inflation.”
Physical slots earned $8.19 billion during the reporting period, while retail table games generated $2.38 billion in gross gaming revenue (GGR). Bettors retained $1.58 billion in player wagers and iGaming added another $1.21 billion in gross revenue.
Michigan and Louisiana state gaming regulators do not separate slot and table game revenue in their reports. As such, the GGR of these two states is combined into the total GGR count and therefore represents the disparity between the total GGR count and the channel distribution.
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The $14.32 billion earned by casinos – which isn’t entirely accurate, as much of the revenue is generated and shared with third-party operators like BetMGM and DraftKings who aren’t casinos – has almost equaled the best quarter ever in the US gaming industry. $14.35 billion, set in the last three months of 2021. The first quarter of 2022 is, however, a record for January-March.
The expansion of games is responsible for the ever-increasing number of games. Biggest is sports betting, the game that became the state’s right to decide its legality four years ago this month.
On May 14, 2018, the United States Supreme Court issued its landmark decision finding that PASPA – the Professional and Amateur Sports Protection Act of 1992 that restricted sports betting in Nevada – violated the anti-requisition interpretations of the US Constitution. Over 30 states now offer legal and regulated sports betting.
“Four years after PASPA, the success of legal sports betting proves what we’ve known all along: American consumers are eager to bet within the protections of the regulated market,” Miller said. “It also reinforces the need to root out illegal offshore operators who prey on vulnerable customers.”
American casinos, sports betting and iGaming companies help state and local governments to the tune of billions of dollars every year. In 2021, gaming tax revenue totaled a record $11.69 billion. This is 75% more than in 2020 and 15% better than in 2019.
The success of our industry goes beyond the bottom line and into communities across the country. Record state and local tax contributions fund vital services ranging from infrastructure and education to health care and emergency services,” Miller added.
The tax figures exclude federal, state and local income taxes that casinos and gaming businesses pay in addition on their net business income. Of the 34 commercial gaming markets in the United States, the AGA reports that 32 saw an increase in Q1 ’22 GGR over the same quarter a year earlier.