The American commercial gaming landscape was flourishing in 2024, with profits and tax revenue surpassing all expectations. This remarkable achievement marks four consecutive years of industry growth, primarily fueled by the expanding online gaming and sports betting sectors. While traditional venues have experienced a modest revenue decline, the continued opening of new establishments and the enduring appeal of casino resorts demonstrate the industry's resilience and adaptability.
The third quarter of 2024 has set an unprecedented benchmark with $17.71 billion in total commercial gaming revenue. Through September, the industry had already generated $53.24 billion, representing an impressive 8% increase compared to the same period in 2023. This upward momentum suggests a strong conclusion to the year, particularly as the fourth quarter traditionally benefits from increased holiday-related betting activities.
Year-to-date figures have surpassed all previous records. iGaming revenue reached $8.41 billion—a substantial 28.7% year-over-year increase. Sports betting revenue grew significantly, rising 25.4% to $13.71 billion. While land-based casino revenue remained steady, slot machines alone contributed $36.06 billion, a 1.6% increase, while table games generated $10.14 billion, experiencing a slight 1.7% decline. Digital platforms now account for 30% of total revenue, reflecting a significant shift in consumer preferences that continues to reshape the gaming landscape. This transformation has exceeded many analysts' expectations, suggesting we're witnessing a fundamental change in how Americans engage with gaming entertainment.
With digital platforms now making up 30% of total revenue, more and more casinos are expanding into the online space to stay competitive. Some online casinos have even started integrating Discord, creating a more interactive and community-driven experience that aligns with shifting player habits. Through Discord, players can play casino games from libraries featuring thousands of options, connect with like-minded players in a dynamic gaming community, enjoy near-instant payouts, and take advantage of enticing perks like welcome rewards, free spins, cashback offers, no-deposit bonuses, and VIP rewards. As digital gaming continues to evolve, these innovations are redefining what players expect from the casino experience, making online platforms an increasingly dominant force in the industry.
Since PASPA's repeal in 2018, digital gaming has driven industry growth, a trend that continued in 2024. iGaming revenue climbed 28.7%, while sports betting surged 25.4%, fueled by major events and expanded access. These digital segments now account for nearly a third of total gaming revenue. With seasonal sports and holiday promotions ahead, engagement is expected to rise further. Notably, digital gaming is drawing in demographics that previously showed little interest in traditional casinos, expanding the market rather than just shifting existing players.
Despite digital platforms' increasing dominance, traditional casinos continue to play a vital role in the industry's ecosystem. While experiencing a modest 0.9% revenue decline, land-based establishments remain essential through new venue openings and sustained consumer demand.
A notable shift is occurring in the demographic composition of casino visitors, with the average age dropping from 50 to 42, signaling growing appeal among new audiences. This shift shows that traditional venues are evolving to stay relevant in an increasingly digital world. Strong demand for immersive, in-person gaming and the success of casino resorts ensure physical establishments remain essential. Many operators are investing in unique amenities and entertainment, offering experiences digital platforms can't replicate, securing their place in the gaming ecosystem.
Tax Revenue Growth The gaming industry continues to be a significant source of public funding, with 2024 proving particularly productive. The industry generated $15.66 billion in gaming tax revenue, marking an 8.5% increase compared to 2023.
These contributions fund essential public services, infrastructure, and local budgets, highlighting gaming’s broader economic impact. The steady rise in tax revenue continues to support government programs and community initiatives nationwide. In many areas, these funds directly benefit education, healthcare, and problem gambling prevention, reinforcing gaming’s role beyond entertainment.
While no additional states legalized online gaming or sports betting in 2024, the industry nevertheless experienced considerable organic growth. States such as Minnesota and Mississippi are advancing legislation to legalize sports betting, potentially boosting industry revenue in 2025 and beyond.
Meanwhile, North American market expansion continues through strategic partnerships, exemplified by Gaming Corps' collaboration with OddsWorks. This alliance aims to strengthen innovative gaming solutions, enhance competition and diversifying player experiences. Such partnerships highlight the sector's adaptability and evolution, ensuring sustained growth and engagement.
The demand for modernized gaming experiences, both online and in-person, will continue to shape the industry's trajectory as technologies advance and regulatory frameworks evolve. The emergence of more sophisticated mobile gaming options and the integration of social elements have proven particularly successful in engaging newer generations of players, suggesting these innovations will play a significant role in the industry's future development.
The US commercial gaming industry is positioned for another record-breaking year, having exceeded $71.92 billion in revenue at the end of 2024. With digital platforms driving growth, traditional casinos maintaining relevance, and increasing tax contributions highlighting the sector's economic importance, gaming's future in America remains exceptionally promising as it continues adapting to evolving consumer preferences and technological innovations.
