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Gaming revenue growth continues to decelerate in US


Commercial gaming revenue growth slowed for a fourth consecutive month in May, according to the American Gaming Association (AGA).

Total gross gaming revenue (GGR) in the US increased year-on-year in May by 6.4% to $5.49bn (£4.28bn/€4.97bn). Over the first five months of 2023, total GGR is up by 12.4% at $27.59bn.

However, the AGA’s Commercial Gaming Revenue Tracker revealed that growth has slowed steadily since a year-on-year increase of over 20% was registered in January 2023.

Sports betting, igaming growth

There was significant year-on-year growth in sports betting and igaming in May, continuing a trend of recent months. Indeed, the tracker revealed record monthly figures for both verticals.

Sports betting GGR rocketed by 41.5% in May to $864.1m while igaming GGR increased by 22.4% to $498.4m. Over the first five months of 2023, total sports betting and igaming revenues were up 64.9% and 22.3% respectively on last year’s figures.

Slot GGR edged up by 1.3% to $2.98bn to remain the largest vertical in May. In the first five months of the year, slot GGR is up 5.1% on 2022 figures.

However, table game revenue fell by 4.8% to $834.3m in May. So far in 2023, table game revenue is up by 1.9% year-on-year – the most modest increase of any vertical in the US gaming landscape.

Digital shift

The tracker also illustrated the ongoing shift in gambling behaviour towards digital platforms.

Revenue from land-based gaming, encompassing casino slots, table games and retail sports betting, declined by 0.6% in May. Meanwhile online gaming GGR – including digital sports betting – grew by 43.4%. This increase was driven largely by the introduction of online sports betting in Kansas, Maryland, Massachusetts and Ohio in recent months.

New York, which reported a year-on-year increase in sports betting handle and revenue for May, remains the largest sports betting market in the US.

In terms of top sports betting states by revenue in May, New York ($153m) was followed by Illinois ($89m) and New Jersey ($82m).

Excluding the impact of new sports betting markets and online expansions, sports betting revenue grew 24.2% compared to May 2022. Notably, Massachusetts and Ohio, two of the newest markets, cemented their positions among the five highest-grossing sports betting states in May with respective revenues of $62m and $58m.

Slowing growth

The AGA, which compiles state regulatory data, says the overall figures show “the end of COVID-related impacts to year-over-year growth measures.”

Owing to this, the AGA adds that “the strength of state market performances have begun to diverge.”

Twenty-four out of 33 commercial gaming jurisdictions that were operational last year reported a year-on-year revenue uplift.

Nine states – Delaware, Florida, Iowa, Indiana, Louisiana, Missouri, Missouri, Nevada and Oregon – experienced declines. These were primarily due to slowdowns in the traditional casino segment, as well as lower sports betting revenue in Delaware, Mississippi and Oregon.