March marked the 13th consecutive quarter of growth in US gaming revenue, according to the AGA’s Commercial Gaming Revenue Tracker. The tracker provides state-by-state and cumulative insights into the US industry’s performance, utilising state revenue reports.
Revenue in March alone was $6.1bn, the US industry’s second highest grossing month ever.
Q1 saw 11 states set new quarterly revenue records for gaming. These included New York and Pennsylvania, two of the US’ largest commercial gaming markets.
A record $14.7bn was paid to state and local governments in tax contributions deriving from direct gaming tax revenue across 2023. This was up 9.7% from 2022 and doesn’t include further contributions in income, sales or other taxes.
AGA president and chief executive Bill Miller believes 2024 will prove a crucial year for the US market.
“While gaming’s momentum remains strong, 2024 will be the new baseline for future growth after several years of sports betting legalisation and post-pandemic consumer shifts,” Miller said. “Gaming’s continued growth relies on maintaining our commitment to innovation and responsibility.”
AGA attributes record igaming Q1 to Rhode Island launch
Rhode Island became the seventh US state to launch igaming in March, with Bally’s Corporation’s online casino going live.
US igaming grossed a record $2bn in Q1, a 26.1% year-on-year increase. The AGA attributed the rise to the bolstering of the figures from Rhode Island’s igaming launch.
US retail and online gaming both grew in Q1, although the AGA noted this was at slower rates than in previous quarters.
Retail accounted for 70.7% of the total Q1 revenue with $12.3bn. This was an increase of only 0.3% year-on-year, with the AGA putting the stagnation down to adverse weather early in the quarter. Retail was responsible for 70.7% of total Q1 revenue. Online gaming, meanwhile, achieved its highest ever share of total revenue at 29.3%.
Americans bet a quarterly record of $36.9bn on sports over Q1, producing $3.3bn in quarterly revenue, a 22% year-on-year rise. Again, the AGA credited new market launches in the likes of North Carolina and Vermont for that increase.
Miller said: “As gaming expands, more communities than ever are benefitting.
“We are proud to create jobs across the country, provide world-class entertainment experiences that offer safe alternatives to the pervasive illegal gambling market and generate tax revenue to support critical public projects.”
Numerous top US brands report strong Q1
The AGA’s announcement of a record Q1 was powered by growth among some of the top brands in the US.
DraftKings, for instance, reported a 52.7% year-on-year rise in revenue to $1.2bn from the $769.7m generated in the same quarter last year.
As a result of its strong Q1, DraftKings raised its full-year guidance. The company is now targeting revenue between $4.8bn-$5bn from the initial objective of $4.65bn-$4.9bn, while it has raised its adjusted EBITDA target to $460m-$540m from $410m-$550m.
Flutter Entertainment-owned FanDuel, meanwhile, achieved over $1.4bn in Q1 revenue, with igaming gross gaming revenue market share hitting a new record of 27%.
Flutter chief executive Peter Jackson said: “We have had an excellent start to the year.
“In the US, FanDuel’s top line momentum is translating into strong growth in US adjusted EBITDA and market share gains. We are focused on continuing to expand our player base, market share and embedding future profits within our business through disciplined investment.”
Original article: https://igamingbusiness.com/finance/quarterly-results/aga-reports-record-quarterly-us-revenue/
