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For the first time, U.S. commercial gaming revenue reached $15 billion in the third quarter. Even though the economy is down and it’s been a rough year financially, people are still spending money on gaming entertainment. In fact, spending has increased this year, setting another record-breaking consecutive year for the industry.
Data collected by state regulators and reported by the AGA showed that in the third quarter, revenue from traditional casino games, sports betting, and iGaming rose to $15.17 billion nationwide, a two percent increase from the previous record set earlier this year. American players rather play at regulated sites, which you can find on this US Online Casino List.
Even though there were two fewer days to gamble on the weekends this year, people still spent more money gaming, 8.8% more than last year. This growth rate is higher than the US economy’s average growth rate of 2.6%.
Gaming strongest year
Gaming revenue increased from the previous year in all areas, with slots, table games, and sports betting all making more money than ever before. Out of all commercial gaming revenue, slot machines and table games grossed the most at $12.27 billion, equaling 80.9%. Sports betting came in second with total revenue of $1.68 billion (11.1% of the total), while iGaming rounded out the top three with a Gross Revenue of $1.21 billion (8%).
Sports betting and iGaming, when combined, bring in quarterly revenue of $2.89 billion, which comprises 19.1% of the total gaming industry’s revenue.
After three booming quarters, 2022 has been the strongest year in gaming history. So far this year, revenue has reached $44.48 billion, 14.7% more than last year’s period.
The twelve-trailing-month (TTM) revenue for the past twelve consecutive months from Oct 2021 through Sep 2022 was $58.73 billion.
iGaming revenue for October 2022
Online gambling is legal in six states in the United States: New Jersey, Michigan, Pennsylvania, Connecticut, West Virginia, and Delaware. This overview looks at the revenue generated by online gaming in each state. The total revenue for October 2022 in the iGaming industry in New Jersey, Michigan, Pennsylvania, Connecticut, West Virginia, and Delaware equals $445.2 million, a slight increase of 22% from October 2021. In October, New Jersey, Michigan, Pennsylvania, and Connecticut set revenue records.
New Jersey
In October, New Jersey’s internet-gaming wins were $147.2 million, a 15.9% increase against the $127 million recorded in the same period last year. In October, the total revenue for iGaming smashed the previous September record by nearly 14%. This means that the October total of $127 million is now the new record, breaking August’s old record of $122.6 million. This was the 10th time this year and the 9th consecutive month that iGaming in New Jersey topped nine figures.
In October, New Jersey saw an online-gambling tax revenue increase of 14%, collecting $22.1 million as opposed to the $19 million collected in the same period last year.
Michigan
Once again, Michigan proves itself to be a force to reckon with in the world of online gaming, this time threatening New Jersey for supremacy. In October, the state of Michigan won a record $141 million from online gamblers, besting the previous record of $132.4 million set in April 2022 by six percentage points. In October 2022, iGaming in Michigan increased by 22.2% to $109.7 million, setting a new record for the third month straight.
14 online casinos in the state of Michigan paid a combined $26.3 million in taxes, which is 23.7% more than what they paid in October 2021 ($20.3 million). This year has been the highest earning yet for these businesses. A total of $6.9 million was paid to the city of Detroit, and $3 million went to various tribal governments.
Pennsylvania
In October, Pennsylvania’s iGaming revenue reached $124.5 million, exceeding the state’s previous record of $118.1 million set in March 2022. In November, Pennsylvania’s online gambling market hit $120.6 million, which is a new record for the state. This figure marks a 17.4% increase from October 2021’s earnings of $102.9 million- Keystone State’s first time raking in 10 figures that month. Since then, it has done so every month consecutively.
Compared to last year’s $70.7 million, this year’s online slots revenue increased 18.1% to $86.3 million. Table games played online totalled $35.7 million in October, an 18% increase from the $29.3 million generated in October 2021. Although online poker’s profit decreased by 10.7% from $2.8 million last year, it still managed to make $2.5 million this year.
In October, Pennsylvania generated $52.7 million in iGaming taxes, a 17.9% uptick from the previous year.
Connecticut
IGaming operators brought in a record amount of money in October – $21.9 million. Out of that, DraftKings accounted for 57.5% with $12.6 million and FanDuel’s $9.3 million made up the other 42.5%. They together paid out $4 million in taxes. Online casino gambling was launched in Connecticut on October 11, 2021, so we can compare the full-month data from November onwards.
West Virginia
In October, Mountain State’s iGaming revenue was $9.4 million. That’s a 32% increase from the $6.4 million in October 2021. However, it’s important to note that West Virginia reports its results weekly, so it’s never an apples-to-apples comparison. Still, last month’s total significantly improved over the same period last year.
Delaware
Delaware’s internet casinos made $1.2 million in October 2022. That is a 22.5% increase from the year before. The most popular games were online video slots, which made $911,649. Table games brought in $258,377, a 27.5% increase from the previous year. However, online poker revenue decreased by 7%.
Conclusion
The online gambling industry continues its steady growth, setting new records in revenue and profit month after month. This year’s iGaming market has been highly successful for New Jersey and Michigan, with Pennsylvania quickly catching up. Other states such as Connecticut, West Virginia, and Delaware have also seen positive results from their iGaming initiatives.