Our sustained momentum in the face of broader economic volatility points to gaming’s overall health today and provides confidence as we look to the future. The American Gaming Association (AGA) reported that non-tribal gaming revenue in the US hit a record $15.2 billion in Q3 2022, a 2% increase from the previous record ($14.8 billion) set in the preceding quarter.
According to the AGA’s Commercial Gaming Revenue Tracker, sports betting and iGaming continued to see vigorous growth in Q3. Real money US sportsbooks had a record hold of 10.5% while online casino gaming made $1.2 billion, just shy of the record set in Q2 2022.
“While business challenges remain, high consumer demand continues to fuel our industry’s record success,” AGA President and CEO Bill Miller said Tuesday. “Our sustained momentum in the face of broader economic volatility points to gaming’s overall health today and provides confidence as we look to the future.”
Sports Betting Revenue Hits Record $1.7 Billion
The AGA said Americans made just short of $16 billion in sports wagers in Q3 2022, a 40.9% increase year-over-year.
“This is a result of continued growth in wagering activity across 15 of 20 markets with betting throughout all of Q3 2021, the addition of seven new markets since September 2021, as well as mobile betting options in New York,” the AGA said.
Overall revenue from sports betting hit a record $1.7 billion, eclipsing the previous record of $1.6 billion set in Q1 2022. Revenue was up 80.6% year-over-year.
“Excluding the new markets and New York mobile betting, Q3 2022 saw sports betting revenue increase 33.3% from a year ago,” the AGA said.
The record 10.5% hold helped drive revenue. Hold was, by comparison, 7.5% in Q2 2022 and 6% in Q1 2022.
The AGA added that year-to-date revenue from commercial sports betting reached nearly $4.8 billion, a 71.4% increase from the same point last year. Americans have wagered almost $62.7 billion on sports through the end of Q3, the association said.
Online Casino and Poker Revenue Kept Growing in Q3
Online casino gaming and poker also saw continued growth, according to the AGA.
The combined verticals generated $1.2 billion in revenue in Q3 2022, up 28.5% year-over-year and less than one percentage point from the quarterly record set in the preceding quarter.
“Six iGaming markets were live this quarter compared to five in 2021 — excluding Nevada online poker,” the AGA said. “Omitting the less-than-one-year-old Connecticut market, iGaming revenue was up 21.3% year-over-year.”
The AGA added that 2022 has been the strongest year, through the first three quarters, for iGaming revenue. Revenue was up 38.1% year-over-year from the same period in 2021.
“With $3.62 billion generated in igaming revenue through September, the vertical remains on pace to join slots, table games, and sports betting in posting record revenue in 2022.”
Sixteen States Hit Record Gaming Revenue
The AGA also found that 29 of 33 jurisdictions in the US with commercial non-tribal gaming that were operational one year ago had increased revenue year-over-year.
There were 16 states that hit all-time records for quarterly revenue, including five of the six largest gaming markets in the US: Indiana ($728 million), Michigan ($796.5 million), Nevada ($3.8 billion), New York ($1.1 billion), and Pennsylvania ($1.3 billion).
Although four markets saw a year-over-year decline in revenue, it wasn’t severe in three of the four.
Delaware, Maine, and Mississippi saw declines of 3.5%, 0.6%, and 2.9%, respectively. The District of Columbia, a small market with sports betting only, “continued to lose ground to neighboring Maryland and Virginia [in Q3],” the AGA said.