The American Gaming Association (AGA) received positive news from their gaming revenue tracker in the first month of 2022. After 2021 had provided the industry with record-breaking returns, January of 2022 became the fasted start to a year in the industry's history.
Gaming revenue in the United States for the month of January reached four and a half-billion dollars, record-breaking monthly figures that are trending towards the potential of a record-breaking year.
The AGA tracker collects the financial results of American states with analysis for separate gaming avenues, and the most recent report highlights the differences dating back to 2020 – as the global pandemic took its toll on the overall revenue in the gaming market throughout 2020 and 2021. When combining the gaming revenue from conventional casino gaming, iGaming, and sports betting, a growth of 19% took place during 2020 but had thrived to 29% from January 2021.
Month-to-month comparison charts show a revenue decline of 4% in December 2021. But in 2022, the month of January became the eleventh straight month where gaming revenue surpassed $4.4 billion. Before 2021, month-to-month gaming revenue hadn't outpaced the $4 billion mark.
From a state perspective, twenty-two of the twenty-seven monetary gaming districts that were operative in Jan 2020 bared witness to significant growth from that of two years ago.
Yearly casino visitational movements were inconsistent throughout the national markets that released their data, reflecting the post-pandemic return which markets encountered 12 months back as casino usage declined in comparison to January 2021 in Mississippi, Missouri, and Iowa, the percentages in Louisiana inclined by 10% and by a staggering 257% in Illinois.
In 2021, legal casinos in the U.S. achieved their most profitable year from a commercial perspective. Slot machines and table games were the backbones of revenue, as $3.5 billion was returned in January – a 24% increase annually. Dating back two years, market revenue from slot machines rose by 2.9%, but table games were down 3.5%. Fifteen of twenty-five states with physical casinos received higher revenue rates for slot machines and table games in the same month of 2020. Yearly, revenue had increased in all states besides three of them.
In-Person Gaming Remains on Top
Once the AGA commercial figures of the year were released, the casino's $53 billion revenue of 2021 was proof that traditional in-person gaming is still the most profitable avenue for those involved in the gaming industry.
Covid-19 undoubtedly skewed the figures of the last 24 months, but the post-pandemic statistics of 2019 are 21% higher following 2021's success.
"These results are nothing short of remarkable," said the president and CEO of the gambling association, Bill Miller.
"The success of 2021 reflects our commitment to health and safety and how Americans have welcomed gaming's expansion across the country. Today's industry is effectively meeting customers how and where they want to engage, whether at a casino or through mobile gaming." He continued.
In addition, the market revenue of 2021 reported by the AGA doesn't include tribal casinos, whose reports are done independently. However, Miller shared that "Tribal leaders have explained their 2021 returns were the most successful year on record."
Of the thirty-three states and Washington D.C. that provide commercial gambling, twenty-three of them presented record-breaking profits.
Customers who visited casinos in 2021 won close to $45 billion in total, a 6% increase from 2019.
Online Gaming Revenue Isn't Far Behind
In addition to the gaming market revenue, the world of sports betting enjoyed a successful 2020 as more than $56 billion wagers were accepted – 165% higher than 2020. After returns, costs, and damages were paid out, sportsbooks inside casinos and racetracks took $4.3 billion in profit – a 177% increase from 2020.
The rapid rise in newly established commercial sports betting markets assisted the record-breaking year. Arizona, Connecticut, Louisiana, Maryland, South Dakota, Virginia, and Wyoming joined the sector in 2021. In addition, the online gambling markets of Connecticut and Michigan were introduced in 2021, adding a further $3.7 billion in revenue.
If we combine the sports betting and online gambling revenue of 2021, totals exceed $8 billion – a 158% increase from 2020 – which accounts for 15% of the overall gambling revenue.
"Business travel, meetings, and events, and entertainment – significant revenue – drivers for many operators – have been slow to return," Miller said.
"The impact of this is compounded by depressed international visitation to the U.S., which is critical for the full recovery of destination markets like Las Vegas. And visitation among the older, core casino audience is only just getting back to pre-pandemic levels.
"Gaming's total recovery is still reliant on the full return of travel and large events, which requires a safe, healthy environment, and an open economy," he continued.
As the launch of mobile sports betting in New York and Louisiana can provide nothing but positive outcomes to the revenue records, Miller anticipates that 2022 will be a prosperous year for the casino sector. New York, in particular, has already excelled during its inauguration, becoming the No.1 state in the country for sports wagering as over $2 billion has already been bet.
"Nebraska and Ohio are expected to go online in 2022, and we shouldn't forget the launch of Maryland's mobile market that's currently under construction. There are currently several states who're contemplating the sports betting legislation, four of which are considering the online gambling legislation. Physical casinos in Virginia will open in 2022, and multiple racetrack casinos will open in Nebraska." Miller concluded.
2022 has a lot to contend with should it want to compete with the gaming market revenue of 2021. Still, as more states recognize the benefits through taxation and the potential of supplying jobs, we should expect a continuous rise in profits for those within the industry.
2021 in review saw the U.S. commercial gaming industry set a record of $53 billion in revenue – surpassing the previous best of $43 billion in 2019 by more than 21%. However, as the early projections from 2022 continue an up-trending pattern, we could be having another record-breaking discussion when the AGA release their yearly results in nine months' time.
