The American Gaming Association updated its Commercial Gaming Revenue Tracker in July, and the numbers show record growth for the industry.

All gaming areas are showing year-over-year increases, and the industry is on pace to exceed revenues from 2023. The question now is whether this trend will continue or whether the economy and the industry are about to experience a downturn.

May 2024 Breaks Records as Gaming Revenues Surge Past 2023 Benchmarks

The AGA reported that total Gross Gaming Revenue (GGR) for May 2024 was $6.04B, a 9.4% increase over last year and a new record. May became the industry’s 39th consecutive month of growth.

Annual numbers show that the gaming industry is on pace to set a new record. Total GGR through May 2024 is $29.75B, which is a 7.1% increase from 2023.

Looking at year-to-date numbers, traditional Casino GGR grew the least, up 0.9% to $20.69B. Sports betting jumped 24.5% to $5.72B. iGaming GGR had the largest percentage growth, up 25.9% to $3.32B.

May saw sportsbooks take in a combined $1.08B across 32 jurisdictions. This is a 24.7% increase from 2023, when there were 29 legal jurisdictions accepting bets.

If you exclude data from new markets and online sports expansion, organic growth was 10.4% from May 2023.

May was the second-highest grossing month ever for iGaming, with revenues increasing 28.4% to $676.5 million across seven states. Revenues increased in all six states that were active in May 2023.

iGaming GGR grew by 25.9%, while sports betting was up by 24.5%.

iGaming vs Sports Betting: Which Market is Growing Faster?

An interesting stat from this report is that iGaming GGR grew by 25.9%, while sports betting was up by 24.5%.

While sports betting brought in $2.4B in revenue, the growth rate by iGaming is considerable when considering the size of both markets.

The US iGaming market, which includes online poker and casino gambling, only consists of seven states. Sports betting, which includes both live and online sports betting, is available in 38 jurisdictions.

Considering this, iGaming is growing at a much faster pace than sports betting.

The larger markets (MI, PA, and NJ) are experiencing growth that resembles that of a steadily growing Fortune 500 company. The smaller markets are experiencing consistent revenues without signs of a long-term retraction.

Is This Growth a Sign of a Strong Economy?

The growing revenues of traditional casinos, sportsbooks, and online casinos signify a strong US economy. Players with more disposable income can now head to their favorite casino or log in online to make a few bets.

Also, the continued expansion of gambling is another positive economic sign. A 2012 Study in the Journal of Gambling showed a link between economic strength and gambling expansion.

This makes sense as many gambling options become secondary to providing for basic needs during a financial crisis.

Casino gambling generally loses revenue during a recession. Sports betting is typically the least impacted by a recession due to many global sporting events.

Overall, people have less money to spend. While it seems logical that some will turn to gambling out of desperation, the numbers don’t quantify that.

Some predict that a potential recession is around the corner, likely ending any run being made by the gambling industry.

Will the Gaming Industry Face an Imminent Downturn?

The big question on some minds is whether a downturn in the gambling industry is on the horizon. While the industry is approaching almost two straight years of growth, it has to end at some point, right?

As has been evidenced in recent weeks in the stock market, some volatility is being experienced in the market. Some predict that a potential recession is around the corner, likely ending any run being made by the gambling industry.

The remaining months of 2024 will give us a good idea of what to expect for 2025.

If the economy continues to slide, the gaming industry’s run will likely end, and we’ll start to see a downtrend. The severity of the downtrend will depend on what happens in the 2024 Presidential election and how the economy reacts to the change in leadership.

Sources

https://www.americangaming.org/resources/aga-commercial-gaming-revenue-tracker/
https://www.europeanbusinessreview.com/true-or-false-the-gambling-industry-thrives-in-a-recession/
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3501160/

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