American Gaming Generates $66.5B in 2023 Revenue, $10.9B from Sports Betting

USA legal sports betting, iGaming, and casino wagering hit record highs during 2023, according to the American Gaming Association (AGA). 

Figures released on Tuesday showed that American gaming produced its third straight record year, with gaming operators reporting a combined $66.5 billion in revenue. That total was a 10% increase on 2022’s total and accomplished largely thanks to a strong fourth quarter, capped off by earnings of $6.2 billion in December, an all-time monthly record. 

Sports betting contributed $10.92 billion of the total revenue, a 44.5% year-to-year increase.

The training wheels are completely off of the American gambling market. Although casinos have been legal for years, the rise of sports betting has brought the prevalence of all forms of gambling to the forefront of many Americans’ lives.

“From the traditional casino experience to online options, American adults’ demand for gaming is at an all-time high,” said AGA president and CEO Bill Miller. “Sustaining our momentum will take unified industry efforts around combating pernicious illegal operators and growing responsible gambling efforts in tandem with the growth of the legal market—both of which the AGA is committed to lead on throughout 2024.” 

Even with Arizona (November) and Kentucky (November and December) unaccounted for, legal sportsbooks reported a combined $119.84 billion in total wagers (27.8% increase Y2Y).

Marquee events such as the Super Bowl, March Madness, and NBA Finals helped drive the handle, as did legalization efforts and market launches in Kentucky, Maine, Massachusetts, Nebraska, and Ohio. 

Online sportsbooks weren’t the only ones left with fat bellies in 2023. States received a combined $14.4 billion in tax revenue from operators’ revenues.

New York, New Jersey, and Illinois all broke the $1 billion barrier in 2023 sportsbook revenue. This was the second straight year for New York ($1.697 billion) and the first for New Jersey ($1.007 billion) and Illinois ($1.002 billion).

New Jersey also started 2024 strong, setting a new state record with $1.72 billion in wagers during January. Sportsbooks’ revenue exceeded $170 million during that time—$115 million of which was from parlays—representing 136% growth Y2Y.

Meanwhile, the AGA already estimated $23.1 billion in wagers on Super Bowl LVIII, marking yet another record.

While sports betting stole many headlines, online casino gambling also proliferated during 2023.

Although online casinos are only available in six states—Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia—bettors wagered $6.2 billion by New Year’s Day, a 23% increase from 2022.

Retail casinos also grew their revenue to a record-high $49.5 billion (3.3% growth).

“Gaming’s success translates directly to the success of the states, cities and towns in which we operate,” said Miller. “We are proud to be in 47 U.S. jurisdictions, acting as economic drivers, creating jobs and providing the funding that makes critical public education programs, infrastructure projects, problem gambling resources and more.” 

While growth is likely to continue, its current rate may not hold unless major players such as California and Texas embrace sports betting. The market potential in both states is extreme, but without them, sports betting may face a minor plateau. 

"Some [states] have pretty significant political challenges in terms of getting sports betting itself enacted,” said AGA senior vice president of government relations, Chris Cylke.

Many critics in states both with and without legal sports betting markets still fear that the normalization and expansion of gambling have created more problems than they’ve solved both financially and mentally.