A Record-Shattering Year for US Commercial Gaming
The latest data from the American Gaming Association's (AGA) Commercial Gaming Revenue Tracker confirms that 2021 was the highest-grossing year in the industry's history. The total US gaming revenue from commercial operations reached an astounding $53 billion, shattering pre-pandemic records and signaling a new era of growth. This figure is more than 21% higher than the previous record set in 2019.
The momentum built throughout the year, with the industry breaking quarterly revenue records consecutively. The third quarter generated $13.93 billion, which was quickly surpassed by a massive $14.31 billion haul in the fourth quarter. This highlights the increasing consumer demand and the sector's resilience.
Bill Miller, President and CEO of the AGA, celebrated the results, crediting the industry's commitment to health and safety and its ability to adapt to consumer preferences.
Today's industry is effectively meeting customers how and where they want to engage, whether at a casino or through mobile gaming.
Expansion and Key Growth Drivers
A significant factor in this growth was the rapid expansion of regulated gambling across the nation. In 2021, four new jurisdictions joined the commercial gaming market, bringing the total to 34. This expansion contributed to a widespread boom, with 23 of 24 established gaming jurisdictions setting new records for annual gross revenue.
The breakdown of the revenue sources reveals a multi-faceted success story:
- Traditional Casinos: Brick-and-mortar casinos led the charge, with combined revenue from slots and table games reaching $44.94 billion. This marks a 6.6% increase from 2019, proving the enduring appeal of the classic casino experience.
- Sports Betting: The sports betting revenue segment saw explosive growth. A total handle of $57.22 billion generated $4.29 billion in revenue, representing a staggering 165% and 177% increase from 2020, respectively.
- iGaming Growth: Online gaming also continued its upward trajectory, contributing significantly to the overall commercial gaming revenue.
Navigating the Post-Pandemic Landscape
While the revenue figures paint a picture of complete recovery, some challenges remain. Visitor numbers and event-related business have not yet returned to pre-pandemic levels. AGA reports indicated that casino admissions were still down significantly in late 2021 compared to two years prior. This suggests that while spending per visit has increased, the volume of foot traffic is still recovering.
Despite this, the industry's performance during holiday periods in markets like Iowa, Louisiana, and Illinois showed remarkable strength, indicating sustained consumer interest. The outlook remains positive, with industry leaders optimistic about continued growth.
I'm optimistic that we will see continued growth throughout 2022.
Bill Miller, AGA President and CEO
The record-breaking 2021 gambling statistics demonstrate the industry's dynamic evolution. By embracing new verticals like online platforms and sports betting while strengthening its traditional casino offerings, the US gaming market has positioned itself for a prosperous future, adapting to a new generation of customers and their changing habits.
