United States Sets Q3 Revenue Record for Gaming in 2024
The US commercial gaming industry has shattered records again, reporting $17.71 billion in revenue for the third quarter of 2024, according to the American Gaming Association (AGA). This figure marks the highest Q3 earnings in the sector’s history and underscores its unprecedented 15-quarter streak of year-over-year growth.
US gaming revenue was $17.7 billion for Q3 of 2024.
$17.7 Billion Generated in Q3
The milestone reflects not just a continuation of the industry’s momentum but also a shift in the dynamics of how Americans gamble. A significant portion of the growth is attributable to online gaming, which accounted for 29% of the total revenue in Q3.
Meanwhile, traditional brick-and-mortar casinos experienced a modest decline, signaling a changing landscape in the gaming sector.
Online Gaming Powers Revenue Surge
The rise of online gaming has been a game-changer for the industry. Combined revenues from iGaming and online sports betting reached $5.14 billion during Q3 2024 , an impressive increase from the previous year.
iGaming alone grew by 30.3% year-over-year, bringing in $2.08 billion, while sports betting revenue surged 42.4% to $3.24 billion, according to the AGA.
The expansion of legal online sports betting markets in states like Kentucky, Maine, North Carolina, and Vermont significantly contributed to this growth. Today, more than 35 states have legalized online sports betting, and seven states have passed legislation to permit online casinos.
However, the pace of state legalization has slowed in 2024, with major states like California and Texas still holding out on allowing either online sports betting or online casino sites.
Despite these challenges, David Forman, Vice President of Research at the AGA, emphasized the importance of online gaming to the industry’s future.
“More than a quarter of commercial gaming revenue now comes from online platforms,” he said. “The rapid growth of online casino and sports betting highlights the need for sustainable regulatory frameworks that both protect consumers and ensure the industry continues to thrive.”
Traditional Casinos Face Challenges Amid Growth
While online gaming has soared, traditional casino revenue has faced slight headwinds. ]Revenue from brick-and-mortar casinos fell by 0.9% year-over-year, generating $12.38 billion in Q3 2024. This marks a minor setback for an industry segment that has historically driven most gaming revenues.
However, new casino openings across the country have helped offset this decline. These investments demonstrate that physical gaming locations remain a vital part of the overall market, even as online options capture a growing share of players’ dollars.
A Record Year in the Making
Through the first nine months of 2024, total commercial gaming revenue has reached $53.24 billion, an 8% increase compared to the same period in 2023. This keeps the industry on track to set its fourth consecutive annual revenue record. Notably, September 2024 marked the 43rd straight month of year-over-year revenue increases, underscoring the resilience and adaptability of the gaming sector.
This growth has also translated into benefits for state and local governments, with gaming operators contributing $3.79 billion in taxes during Q3, an 8.9% year-over-year increase.
Role of Football in Betting’s Popularity
The surging popularity of the NFL and college football has further fueled the growth of online sports betting. Football season, which begins in the fall, consistently drives a significant uptick in wagering activity. This seasonal spike is evident in Q3’s record-breaking numbers, as bettors flocked to platforms to place wagers on games.
As football continues to dominate the American sports landscape, its symbiotic relationship with sports betting has become a cornerstone of the gaming industry’s expansion.
Platforms capitalize on fans’ enthusiasm with promotions and real-time betting options, further solidifying their role in the broader entertainment ecosystem.
Push and Pull of Regulation
As gaming revenue hits new heights, the regulatory landscape remains a point of contention. While states are eager to capture the lucrative tax revenue from gaming, concerns about gambling addiction and responsible play persist. Regulatory frameworks vary significantly across states, and lawmakers are grappling with finding the right balance between consumer protection and market expansion.
California and Texas, two of the nation’s most populous states, remain notable holdouts in legalizing online gaming. Their potential entry into the market could represent a seismic shift for the industry, but political and social hurdles have stalled progress.
The Q3 2024 results underscore the transformative impact of iGaming and sports betting on the US gaming industry. As online platforms capture a larger share of revenue, traditional casinos are adapting to remain relevant.
Meanwhile, the continued popularity of football and the gradual expansion of legalized gaming markets hint at even greater growth opportunities in the years ahead.
