America's commercial casinos won $66.5 billion from players in 2023, the industry's best year ever, according to figures released Tuesday by the national trade association.
The American Gaming Association said the total was 10% higher than in 2022, which was itself a record year.
When tribal-owned casino revenue figures are released separately later this year, they are expected to show that total casino gambling brought in nearly $110 billion for U.S. casino operators in 2023.
This all happened in a year in which inflation fell, but food and energy costs still remained higher than before.
“From the traditional casino experience to online options, demand for gambling among U.S. adults is at an all-time high,” said Bill Miller, president and CEO of the association.
When the group released its annual statistical analysis early last year, “inflation was high, uncertainty was in the air. “Forecasters couldn't agree on what impact these challenges might have on disposable income,” Miller said.
As the year progressed, “inflation began to cool, consumers began spending, and the (Federal Reserve) kept interest rates stable,” he added. “The result was a record year for our industry.”
Not even the pre-holiday shopping crisis stopped players from spending their money: casinos won $6.2 billion in December and $17.4 billion in the fourth quarter of 2023, both of which were records.
Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University in New Jersey, which studies the gambling industry, said sports betting is still so new that it could be attractive even to those watching their budgets.
“As a form of entertainment, legal sports betting could be a new and novel experience for many customers and, due to the relatively low cost of entry, may be attractive to them even if their discretionary spending budget is limited,” she said.
On-site gambling remains the be-all and end-all of the industry. Slot machines grossed $35.51 billion in 2023, up 3.8% from the previous year. Table games brought in $10.31 billion, up 3.5%.
Sports betting generated $10.92 billion in revenue, up 44.5%. Americans legally wagered $119.84 billion on sports, up 27.8% from the previous year.
Five new sports betting markets that went live in 2023 – Kentucky, Maine, Massachusetts, Nebraska and Ohio – contributed, generating total revenue of $1.49 billion.
By year's end, Massachusetts and Ohio established themselves among the top ten sports betting states in the country, New Jersey and Illinois surpassed $1 billion in annual sports betting revenue for the first time, and New York topped all states with $1.69 billion.
Internet gambling generated $6.17 billion, up 22.9%. While Michigan and New Jersey each generated $1.92 billion in annual Internet gambling revenue, Michigan only surpassed New Jersey by $115,500 to become the largest Internet gambling market in the country. Pennsylvania was third with annual sales of $1.74 billion.
Other states that offer Internet gambling include Connecticut, West Virginia and Delaware; Nevada only offers online poker.
Casinos paid an estimated $14.42 billion in gambling taxes last year, up 9.7% from the previous year.
Nevada remains the country's top gambling market with $15.5 billion in revenue. Pennsylvania is second at $5.86 billion, closely followed by Atlantic City at $5.77 billion.
New York is fourth with $4.71 billion, followed by Michigan with $3.58 billion. Ohio at $3.31 billion; Indiana at $2.82 billion; Louisiana at $2.69 billion and Illinois at $2.52 billion.
Resorts World Casino in New York reclaimed the title of top-performing U.S. casino outside Nevada. This was followed by MGM National Harbor near Washington, DC, Encore Boston Harbor and Borgata in Atlantic City.
Of the 35 states that have commercial casinos, 31 saw an increase in revenue last year.
Jurisdictions where revenues declined included Florida (-0.4%); Indiana (-2.3%) and Mississippi (-3.5%). The pure-play sports betting market in Washington, D.C. saw a more significant decline, with revenue falling 17.6% behind 2022, the largest decline in the country.