In 2023, the United States witnessed a historic year in gambling, with Americans gambling a record $66.5 billion.
In 2023, the United States experienced a monumental year in the realm of gambling, marked by a staggering record of $66.5 billion in wagers. This milestone not only signified the zenith of the industry’s performance but also marked the third consecutive year of record-breaking growth. The highlight of this surge was the exponential rise in sports betting, which soared to nearly $11 billion, a testament to its increasing popularity among Americans.
The American Gaming Association (AGA) affirmed this remarkable achievement, reporting a 10% increase over the previous record set in 2022. When factoring in the anticipated revenues from tribal-owned casinos, the overall casino gambling revenue for U.S. operators in 2023 was projected to approach an astounding $110 billion.
Remarkably, this growth in gambling revenue unfolded against the backdrop of receding inflation, which persisted in keeping essential costs such as groceries and energy at elevated levels. Despite prevailing economic concerns, the allure of gambling remained undiminished, with both in-person and online platforms experiencing flourishing activity.
Slot machines, the cornerstone of traditional gambling establishments, contributed significantly to this surge, raking in $35.51 billion and registering a notable 3.8% increase from the preceding year. Similarly, table games experienced an uptick, generating $10.31 billion in revenue, reflecting a 3.5% rise. However, it was sports betting that stole the limelight, with an impressive $10.92 billion in revenue, marking a remarkable 44.5% surge from 2022.
The surge in sports betting was propelled by a substantial 27.8% increase in the total amount wagered on sports, which amounted to a staggering $119.84 billion. This growth trajectory was further buoyed by the introduction of five new sports betting markets in 2023, namely Kentucky, Maine, Massachusetts, Nebraska, and Ohio. Collectively, these markets contributed $1.49 billion in revenue, with Massachusetts and Ohio swiftly ascending to become among the top 10 sports betting states in terms of revenue.
Leading the charge in sports betting revenue was New York, with an impressive $1.69 billion, closely followed by New Jersey and Illinois, both surpassing $1 billion in annual sports betting revenue for the first time. Internet gambling also witnessed robust growth, generating $6.17 billion, up by an impressive 22.9% from the previous year. Michigan and New Jersey emerged as the largest internet gambling markets in the country, each generating $1.92 billion in annual revenue, with Michigan slightly edging out New Jersey. Pennsylvania followed closely as the third-largest market, amassing $1.74 billion in annual revenue.
The success story of the gambling industry in 2023 transcended mere financial gains, translating into substantial tax revenues for state and local governments. Casinos alone contributed an estimated $14.42 billion in gambling taxes, representing a noteworthy 9.7% increase from the previous year.
This unprecedented year in gambling underscores the insatiable demand for gaming among American adults, spanning a spectrum of experiences from traditional casino settings to online platforms. It serves as a testament to the resilience and growth potential of the industry, even amidst economic uncertainties, positioning it as a cornerstone of entertainment and revenue generation in the United States.
