In the third quarter, commercial gaming revenue hit $17.71 billion, driven by the ongoing growth of the sports betting and iGaming sectors. 

The American Gaming Association (AGA) announced Thursday that during the period from July to September, gamblers experienced their highest losses ever. The $17.71 billion indicated an 8.1% increase compared to the previous year. Q3 also represented the gaming industry's 15th straight quarter of growth compared to the previous year. 

That's the positive aspect. Now, the downside. 

Although overall gaming revenue kept increasing, it wasn't as positive for traditional gaming entities or physical gaming venues. The AGA report disclosed that revenue from in-person casino players declined nearly 1% to $12.38 billion. 

“Traditional brick-and-mortar casino gaming revenue contracted annually by less than 1% in the third quarter, with slot machines and table games generating $12.38 billion in revenue. Brick-and-mortar revenue decreased year over year in two of the three months in Q3, only rising in August,” the AGA summary read.

Table games contributed to the decrease in legacy, while slot revenue increased by 1.3% to reach $9.1 billion. Nationwide table hold was only 20%, marking the fourth consecutive quarterly decrease. Felt GGR decreased by 8.3% in the quarter to reach $2.42 billion. 

The leftover $860 million in legacy revenue was generated by retail sportsbooks, poker rooms, and various casino games such as bingo. 

Expansion of iGaming and Online Sports Betting 

Losses at retail casinos were readily countered online, as internet casinos and mobile sportsbooks experienced significant revenue growth. 

Over the span of three months, governed online casino gaming in Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia increased by 30% to reach $2.08 billion. Sportsbook earnings reached $3.24 billion, an increase of 42% compared to Q3 of the previous year. 

In the first three quarters, iGaming income across seven states exceeded $6 billion, a 27.2% increase. That represents 16.2% of the $37.2 billion that brick-and-mortar casinos generated in 27 states with commercial casino gaming. Rhode Island was established as the seventh iGaming state when Bally’s Casino launched its online platform in March.

"Each of the six iGaming states with 2023 comparisons grew year over year in the third quarter, led by 393% growth in Delaware powered by the Delaware Lottery’s new iGaming partner Rush Street Interactive. Each of the other five pre-existing iGaming markets posted annualized quarterly growth of 25-68%,” the AGA said.

Over nine months, sports bettors accumulated losses of $9.96 billion, which is 33.6% higher than their losses at the same time last year. The $9.96 billion sets a new revenue record for sports betting in the third quarter, as the market stabilizes following the absence of new states launching sports betting this year. 

Missouri is anticipated to be the 39th state to legalize sports betting next year after voters in the state approved it via a statewide ballot referendum on November 5. 

Market Perspective 

With nine months completed in 2024, all sectors of commercial gaming show positive results, as traditional casino GGR is still up 0.4% in spite of a challenging third quarter. Despite some Americans reducing their discretionary spending due to persistent inflation raising the prices of everyday items, the gaming sector is still witnessing growth. 

“Through the first nine months of the year, nationwide commercial gaming revenue stands at $53.24 billion, pacing 8.0 percent ahead of 2023 and putting the industry on track for a fourth straight record revenue year,” the AGA concluded.