Commercial gaming revenues in the United States are on the rise. According to the American Gaming Association, totals reached $13.6bn for the second quarter of 2021, which is a new record for the industry. The total is the best one yet, outpacing the 2019 third quarter results of $11.1 billion.
To date, commercial gaming facilities have generated over $24 billion, on pace to surpass the full year revenues from 2020 of $30 billion. If the trend continues, the country could see its highest-grossing year yet.
Details of the Quarter
The revenue information comes straight from the Commercial Gaming Revenue Tracker of the AGA. CEO and AGA President, Bill Miller, pointed out that the first half results of the United States gambling market are remarkable. It is a considerable feat if you take into account the industry was at its lowest point ever a year ago.
When the COVID-19 pandemic hit, the casino industry was tested, as some venues were closed for weeks and even months at a time. Operators have tried their best to bounce back after earning nothing or very little for the majority of 2020.
Miller stated further: “This is a testament to our resilience and commitment to providing customers safe environments and world-class entertainment experiences.”
On a state-by-state level, 22 out of 25 that offer commercial casino gaming saw an increase in quarterly revenue for the second quarter this year when compared to the same time frame in 2019. Most of the casinos also outdid the first half of 2019 with revenue totals thus far this year.
Land-Based Casino Revenues Strengthen Recovery
In 2020, the recovery process was bolstered by online casino and sports betting operations. This year, the land-based casinos are stepping in and helping to strengthen the recovery process. Land-based revenues are up almost 10% to $11.8 billion which is better than the previous high from 2019, during the third quarter.
Casinos have been allowed to increase capacity limits as well as cut back on amenity restrictions. Consumer demand is also higher now than last year, so more people are traveling to casinos for entertainment needs.
When the second quarter began, around 75% of commercial casinos were at 50% capacity or less. By the end of June, most were back to full capacity, which meant more revenue potential.
For sports betting, revenues were down 8% from the first quarter, coming in at $889 million. The reason for the decline is the lack of games. Even though the quarter was quiet, it was still able to produce $1.8 billion in the first half of the year, which is more than the same time frame in 2020.
Online gaming revenues are also strong this year. The second quarter resulted in a new revenue for the quarter, producing just over $900 million. Q2 saw a 15% increase from the first quarter of last year.