The gambling industry in the United States is growing bigger every day, it seems. The American Gaming Association just released Q3 2022 numbers, and they certainly bear all that out. Americans love to gamble.
Related: The three most luxurious casinos in the world
U.S. commercial gaming revenue just hit a quarterly record of $15.17 billion in Q3, according to the AGA’s Commercial Gaming Revenue Tracker. The previous all-time was $14.81 billion, and that was set in Q2 2022. The first nine months of 2022 is on track to outpace all of 2021.
High consumer demand is overcoming economic volatility, like high inflation. According to this article in Fortune, Americans don’t seem that bothered, and continue to lose money at casinos at a torrid pace.
Land-based gambling remains the foundation
According to the AGA, commercial gaming’s year-over-year growth rate in Q3 2022 of 8.8 per cent outperformed the broader U.S. economy’s growth rate over the same period of 2.6 percent.
Land-based gambling – slots and tables games – remains the foundation for the industry’s revenue growth. That hit a record $12.27 billion in Q3 2022, up 1.8 per cent from Q3 2021. Sports betting also set a new quarterly revenue record of $1.68 billion, up 80.6 per cent year-over-year. Sports betting revenue through September of $4.78 billion has already beat the all-time full year record set in 2021 ($4.34 billion).
Revenue on the iGaming side through September is also on pace to shatter records – $1.21 billion in Q3 2022, less than one per cent short of a new quarterly record. Year to date, iGaming sits at $3.62 billion, up 38.1 per cent compared to the first three quarters of 2021.
The casino industry in the U.S.
So you get the point. Economic conditions be damned. And Fortune is right – just check out all the attention surround that $2 billion Powerball jackpot. It’s the mere chance that lady luck will shine on you, just this one time, and your financial troubles are over.
There are many high-end casino destinations in different states. It’s not just Las Vegas – although that’s a great place to start. The other gambling hub is Atlantic City. In both of these cities you’ll find something to your liking. But the more you drive across the U.S., the more variety you’ll find. Chicago, Baltimore-Washington, Gulf Coast, New York City and Philadelphia round out the highest-grossing commercial gaming markets in the U.S.
There are 44 U.S. states with legal casino gaming – 981 casino gaming locations according to the AGA. Overall, casino gaming has a $261 billion annual economic impact, a massive industry comprising major international and domestic gaming companies, tribal gaming operators, single-unit casino operators, major gaming equipment suppliers and major iGaming and/or sports betting operators.
Gambling legalities
The legal status of casinos in the U.S. varies from state to state. So, if you want to visit a land-based gambling venue, you need to check out the regulations beforehand. Some states require gamblers to be 21 years of age or older, while others allow 18-year-olds to gamble.
But as said, a massive storyline has been the rise the commercial sports betting and iGaming. The legal status of online casinos in the United States is a bit more complicated than that of their land-based counterparts. There are no federal laws that would regulate this industry on the country-wide level. So, each state is free to choose whether to allow digital gambling or not. Online gaming is the operation of casino-style games like slots and table games over your mobile device.
Nowadays, online casinos are fully legal in six U.S. states only. These include West Virginia, Connecticut, New Jersey, Michigan, Pennsylvania, and Delaware. It means you can find the best New Jersey online casino, but you won’t be able to find a similar gambling website in Nevada or California, for example. New Jersey and Michigan are the largest, in terms of iGaming revenue. Those six states generated $970 million in gaming tax revenue in 2021.
Online casinos: Convenience at the heart of their popularity
Online casinos have become increasingly popular in the U.S. in recent years. Part of the reason for this is the convenience they offer, as players can log on and play from anywhere in the world. In addition, online casinos typically have a much wider range of games than their brick-and-mortar counterparts.
Another draw of online casinos is the bonuses and promotions they often offer, which can give players a boost when trying to win big.
Online casinos: The potential is massive
According to this report, if iGaming was legalized in all the states that currently allow land-based casinos and digital sports betting, the size of that iGaming market would potentially hit $30 billion. That report estimates $6.35 billion in annual state tax revenue from iGaming if that were to happen.
For now, states like New Jersey are there to lead the way. The appetite though is clearly immense. You have to wonder how long it will take regulators to catch up to where the stampede of interest is clearly is heading.
Top photo by David Vives/Unsplash
I am a 50-something Torontonian who loves everything about my city. It’s been my home, my playground, for my entire life. I went to school here. I met my wife here. I own real estate here. I love writing about the transformation of my city on the world stage, which hasn’t been anything short of dramatic. That continues on, as I write this. I write on the real estate scene. I write on travel and fashion. I like following the world of luxury watches.
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