Summary:
- Gaming revenue grew 7.5% year-over-year, driven by surging igaming and mobile sports betting.
- A total of 28 states hit new records, with North Carolina and Vermont reporting revenue for the first time.
- Industry outlook is cautiously optimistic, with executives expecting increased investment and growth despite economic headwinds.
The U.S. commercial gaming industry reached an all-time high in 2024, raking in $72 billion in revenue and marking a 7.5% jump over the previous year, thanks in large part to the continued rise of online casino gaming and mobile sports betting.
This marks the fourth straight year of record-breaking growth, according to the American Gaming Association’s (AGA) latest State of the States report.
28 States Reported Revenue Records
A total of 28 out of 38 states with legal commercial gaming posted new annual revenue records.
Newcomers North Carolina and Vermont entered the revenue column for the first time after launching mobile sports betting operations.
Altogether, commercial gaming generated $15.9 billion in tax revenue for state and local governments, an 8.5% increase over 2023.
Meanwhile, the AGA’s Gaming Conditions Index revealed that while the industry’s overall economic activity slowed in the first quarter, there’s a renewed sense of optimism among gaming equipment manufacturers.
For the first time since Q3 2023, companies reported a more positive outlook on unit sales and capital investments. Nearly half of casino executives now expect revenue growth to accelerate within the next 6–12 months.
Like others, AGA member companies face a landscape where consumers’ discretionary activities will be tested by tariffs on imported goods and stock market setbacks
“Positive” Longer-Term Outlook
However, even as near-term executive views have darkened, their longer-term outlook is more positive, reflecting hope that the current uncertainty will be resolved sooner than later.
Though macroeconomic conditions like inflation, tariffs, and a volatile stock market pose challenges, real disposable income is projected to grow 2.4% by early 2026. Still, household wealth is expected to shrink by 7%, potentially limiting spending on leisure.
Casino gaming in the U.S. kept climbing in 2024, with revenue from traditional games hitting a record $49.89 billion, a modest 1% increase. The real momentum, though, came from sports betting and iGaming.
Thanks to new launches in North Carolina and Vermont, legal sports betting brought in $13.78 billion, up nearly 25% from the previous year, as Americans wagered nearly $150 billion on sports.
Online casino gaming also saw major growth, with seven states generating a combined $8.41 billion, a nearly 29% jump. Rhode Island joined the igaming scene in March, adding $26.3 million to that total.
Some states saw eye-popping gains, like Kentucky (148%) and Wyoming (31.8%), while others saw a dip. Montana reported the steepest decline at 15.6%.
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