The American commercial casino industry marked its best quarter ever. According to the industry’s financial reports, the revenues surpass the sector’s revenue in the entire 2020. Moreover, the American Gaming Association reports imply that the U.S. casinos will have their best year ever in 2021.
The improved performance is attributed to individuals feeling comfortable returning to land-based casinos. Additionally, the popularity of online casinos and sports betting continues to grow.
According to the reports, U.S. casinos made around 14 billion USD in the third quarter of 2021. Industry experts suggest that the industry is on course to break the annual record of more than 43 billion USD recorded in 2019.
The Association’s president and CEO Bill Miller stated that this year’s second quarter also broke some records. He also acknowledged that despite 2021 being a tough year, the industry had recorded two straight quarters of record online gaming revenue. Mr. Miller also reiterated that the industry’s recovery was not a “flash in the pan.” Instead, he said that it was a sustained result of the industry’s leadership that spearheaded responsible reopening, top-class entertainment offers, and extensive favorability.
The financial reports revealed that non-Native American casinos won 13.89 billion USD in July, August, and September of 2021. On the other hand, U.S. casinos won around 39 billion USD for the first three quarters. These numbers have already surpassed the total for all of 2020. It also exceeded the total for the first three quarters of 2019 by around 18%.
In-Person Gamblers Giving the Industry a Boost
Other industry experts suggest that the industry’s resurgence after the restrictions were lifted could be attributed to increased demand from pandemic weary customers. According to the experts, people were anxious to go out and enjoy experiences in person after nearly 12 months of restrictions and quarantines.
Additionally, the casino industry responded quickly by implementing clean and safe protocols. These protocols provided a welcoming environment to individuals looking for safe social activities. Moreover, internet gaming grew dramatically during the pandemic as it got new customers who had become curious about land-based casinos and in-person gaming experiences. Therefore, casino aggressive marketing and loyalty programs encouraged players to try something new.
There is consensus that the enthusiasm to get out and do things among gamblers who were reluctant to visit brick-and-mortar casinos is a key factor driving the record-breaking numbers. For instance, 10 out of 25 states having commercial casinos saw quarterly revenue records. This included four highest-grossing commercial gambling states in 2019: Pennsylvania, Nevada, New Jersey, and New York. Moreover, gambling revenue on the Las Vegas Strip hit an all-time high of 2.06 billion USD.
Tourism Also Played a Part
The Association also claimed that the steady return of tourism had contributed to the record revenues. For example, reports claim that around 9.2 million people visited Las Vegas in the third quarter.
This is around a 10% increase over the second quarter of 2021. Moreover, it became the highest quarterly visitation level since the pandemic hit the world in early 2020.
Slots and Table Games Predominant
The industry’s reports also claimed that slots and table games, typically the bread and butter generated 12 billion USD. This accounted for most of the haul. Additionally, the online gambling revenue also set a new record at 938.6 million USD.
On the other hand, sports betting revenue recorded a quarterly low for 2021 of 886.5 million USD. You attribute this drop in revenue to the limited end-of-summer sports calendar. Moreover, the combined sports betting and internet gambling revenue for the first nine months of the year was 5.36 billion. This was a whopping 5.36 billion USD, up over 200% year over year.
Key Market Trends
Live Casino Market Gaining Momentum
The U.S. live casino market is still at a burgeoning stage because of stringent regulations. However, top-drawer software providers have gotten licenses to provide their live dealer games in New Jersey. This has encouraged global players to invest significantly into the market to extend their reach and customer base.
Additionally, more licensed operators have signed contracts with top-drawer live casino gaming providers. Besides that, software providers are opting for mergers and acquisitions as a critical strategy to attain consolidation and optimize their offerings.
Pennsylvania regarded as the Fastest Growing Market
Pennsylvania is ranked the fourth and biggest state to regulate and legalize online gaming. Data released by the American Gaming Association revealed that Pennsylvania casinos gross revenue amounted to nearly 3226.92 million USD in 2017. This was the second-highest after Nevada.
Experts project regulation of online casinos in the state to increase the number of downloads of several online casino games. This trend is projected to add more revenues to the overall online gambling market. Moreover, after the launch of internet gambling in the state in 2019, companies are forming partnerships to handle the increased demand for online casinos.
U.S. Casinos Have Had a Successful Quarter, Exceeding 2020 Revenue Already was first seen on Casino Life Magazine