The recent State of the States revenue report by the American Gaming Association, issued on Tuesday, revealed that US commercial gaming garnered $72 billion in revenue in 2024, marking a 7.5% rise from 2023. Last year’s total hit a new all-time high for the fourth consecutive year, a remarkable achievement following the challenges posed by the Covid pandemic and subsequent economic difficulties.
Out of the 38 states with commercial gaming, 28 achieved all-time individual records in the past year, according to the AGA. The sector contributed $15.9 billion in state and local tax revenue, another record and an 8.5% increase year over year. This figure did not encompass the federal excise tax paid by sports betting operators or other typical corporate taxes.
As per the report, 15 states experienced double-digit revenue growth in 2024, with two more at 9%. Washington DC saw the most significant increase at 181.7% after transitioning from a sports betting monopoly to a competitive market.
Conversely, eight states witnessed declines, with five showing decreases of 2% or less. Montana was the largest decliner at -15%, although it was the smallest market with just $7.1 million in revenue.
Performance by vertical
Commercial casino revenue reached $49.89 billion in 2024, a new high and a 1% increase from 2023. This was generated by a total of 492 facilities nationwide. Sports betting revenue surged 25% to $13.78 billion, boosted by the launch of two new markets during the year: North Carolina and Vermont. The handle for the year stood at $149.9 billion.
Revenue from legal iGaming in seven states rose by 28.7% to $8.4 billion, including $26 million in Rhode Island, which debuted last year as the first new market since Connecticut in late 2021. The total excludes Nevada, which only offers online poker.
Overall, the results highlight the growth disparities among these sectors. Retail revenue has seen marginal growth or even declines in some cases, while sports betting and iGaming have experienced significant expansion.
All seven iGaming states reported record monthly revenues in March. In comparison, the Las Vegas Strip witnessed a 5% year-over-year decrease for the month and is down over 3% for the fiscal year.
Gaming outlook lower in the near term
While the record figures are positive, other findings painted a less optimistic picture. The AGA disclosed on Tuesday that its Gaming Conditions Index, which “reflects actual economic activity in the industry, measured by gaming revenue, employment, employee wages and salaries, executive sentiment, and casino hotel RFP activity”, dropped by 0.9% year over year, marking “the largest contraction since the pandemic”.
This decline, as per the AGA, was mainly driven by weaker real wages, slightly negative sentiment, and below-average revenue growth. A survey of 28 executives from member companies revealed an aggregate sentiment of -5.6% for the quarter. This suggests that 5.6% more respondents gave negative responses to business outlook questions compared to positive ones.
Although this was an improvement from the previous survey (-8.7% in Q3 2024), the near-term outlook has been significantly affected. The AGA noted that Q1 marked the first time since the survey’s inception in 2021 where more executives reported a negative current business situation than a positive one – 36% negative versus 18% positive.
“While executives are optimistic about capital investments, expectations regarding hiring pace and wage growth remain subdued,” the report stated. “Employee wages and benefits, along with tax or regulatory policy changes and data protection, were identified as the top factors exerting additional pressure on profit margins in the next six to 12 months.”
Looking ahead
However, the long-term outlook appeared more positive. Over 80% had a neutral long-term view, while 14% were positive and only 4% were negative.
“Executive sentiment regarding future customer activity reached its highest level since Q1 2022, with 29% of executives anticipating an increase,” the AGA highlighted. “Insufficient customer demand, which was cited as a limiting factor by 22% of executives in Q3 2024, was only selected by 11% of executives in Q1 2025.”
It is noteworthy that the survey was conducted from March 25 to April 8, encompassing responses before and after the market fluctuations around “Liberation Day”. Several gaming companies experienced significant stock declines before recovering, and most CEOs have downplayed the economic impacts during first-quarter calls.
“Similar to others, AGA member companies are facing a landscape where consumer discretionary activities will be challenged by tariffs on imported goods and stock market fluctuations,” the association remarked. “Nevertheless, despite the darkening near-term executive views, the longer-term outlook is more optimistic, reflecting hopes for a swifter resolution to the current uncertainties.”
