American Gaming Association records unprecedented revenues for Q2

The American Gaming Association, a trade group representing casino operators in the US, has reported an unprecedented increase in gross gaming revenue throughout the country for the second quarter of the year. Based on data submitted by operators, the AGA records that total revenue for Q2 across all verticals rose to $14.81bn as against the $14.31bn for Q4 2021. This marks a 3.3% increase from Q4 to Q2 and an 8.8% year-on-year increase.

Despite macro-economic setbacks and reduced growth rates for Q2, gross gambling revenue for the first half of the year (H1) still amounted to a total of $29.6bn, marking an 18% increase for year-on-year revenue. Judging by these statistics, 2022 is set to be the most profitable year in US gaming history and for operators in general.

“Q2’s results mark a 16-month period of gains for commercial gaming,” said AGA President and CEO Bill Miller. “With increasingly difficult year-over-year comparisons, our strength through the first half of 2022 reflects sustained consumer demand for legal options as well as gaming’s record popularity.”

According to the report, traditional gaming continues to be popular among US gamblers, with slot machine revenues spiking by 0.2% and table games increasing by 18.2%, all totalling $23.6bn for H1. Demand for sports betting in H1 stays high as revenue totals $3.04bn, indicating a 63.9% year-on-year increase. Furthermore, the iGaming market generated gross revenue of $2.42bn and a 43.5% jump from the same period of the previous year.

The AGA chalks these developments to increased consumer demand for travel and entertainment as business and travel are gradually returning to pre-pandemic levels. Furthermore, the increase in sports betting is a result of the Supreme Court ruling that enabled states to legalize sports gambling. As a result, states with permits to gamble such as Arkansas, Nevada, and Oregon, to name a few, saw a rise in their gross gambling revenue.

“While on pace to set an annual revenue record, we are cognizant of the continued impacts of inflation and labor challenges as well as marketplace concerns of potential recession,” said Miller. “Our members have proven their agility and resilience over the last two years and are well-positioned to face these potential headwinds heading into the second half.”

The AGA’s report is coming just after the National Indian Gaming Commission declared its 2021 revenue, which came to a total of $39bn.

In his remarks, Miller concluded: “Tribal gaming demonstrated its responsible leadership throughout the pandemic and these record results reflect that commitment. The full recovery and ongoing success of tribal casinos goes well beyond the casino floor to support vibrant communities across the country.”

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