Washington, D.C. – Gaming executives remain upbeat about current business conditions with a neutral outlook on future conditions, according to the American Gaming Association’s (AGA) Gaming Industry Outlook presented in partnership with Fitch Ratings.
The overwhelming majority of gaming executives surveyed view the current business situation as good (42%) or satisfactory (55%), moderating from Q1 when 62 percent reported good conditions and 35 percent described them as satisfactory. When asked about future business conditions, more than half expect the next three to six months to be about the same (58%), with the remainder almost evenly split between those who anticipate better or worse conditions (3% net positive).
“The significant expansion and record demand for legal, regulated gaming in the post-pandemic era have allowed our members to consistently invest in our product and people to deliver innovative entertainment options for American adults,” said AGA President and CEO Bill Miller. “Gaming CEOs remain focused on delivering world class entertainment options against the backdrop of broader economic uncertainty.”
Current Conditions Index
The Current Conditions Index measured 100.6, reflecting slight growth of 0.6 percent in casino gaming-related economic activity in Q3 2023 relative Q2 2023. Because gaming revenue and employee wages are adjusted for inflation, the Current Conditions Index was tempered by persistent high inflation through Q3 2023.
Future Conditions Index
The Future Conditions Index stands at 99.6, indicating annualized industry economic activity over the next six months is expected to decrease slightly. This outlook reflects Oxford Economics’ forecast that the U.S. economy will experience a mild recession beginning in Q4 2023. However, even with an anticipated slow down in consumer spending, consumer survey results continue to indicate that more than one-third of adults expect to visit a casino during the next 12 months, consistent with prior quarter results.
Gaming Executive Panel
Executive views on future financial conditions are mixed. On balance, respondents expect that their overall balance sheet health will improve (26% net positive) over the next three to six months and that their pace of capital spending will increase (24% net positive). However, on net, they expect the pace of revenue growth to decrease (13% net negative responses) and describe access to credit as somewhat restrictive.
At the sector level, gaming supplier CEOs broadly expect the pace of unit sales to increase through the end of the year while many operator CEOs plan to increase capital investments in their food and beverage offerings.
- Casino operators expect gaming units in operation to increase (11% net positive), while 67 percent expect greater than normal investments in food and beverage and 33 percent expect greater than normal capital spending on gaming machines.
- Gaming equipment manufacturers expect units for new or expansion use to increase (44% net positive), with an equal share expecting sales of gaming units for replacement use to increase.
When asked about top business challenges, 58 percent of executives cited inflation or interest rate concerns as factors limiting operations, followed by overall uncertainty of the economic environment (55%).
About the Outlook
The AGA Gaming Industry Outlook is presented in partnership with Fitch Ratings and prepared biannually by Oxford Economics. It provides a timely measure of recent industry growth and future expectations. The Q3 2023 survey was conducted between August 28 – September 6, 2023. A total of 33 executives responded, including executives at the major international and domestic gaming companies, tribal gaming operators, single-unit casino operators, major gaming equipment suppliers, and major iGaming and/or sports betting operators.
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On September 19th at 11am ET, please join KPMG U.S. Gaming Leader Rick Arpin with American Gaming Association Vice President, Strategic Communication & Responsibility Cait DeBaun for a live conversation on responsible gaming culture.
AGA Featured Speaker
Cait DeBaun
VP, Strategic Communications & Responsibility
American Gaming Association
Everi
“At Everi, we recognize that we can be at our best only when we embrace and reflect the customers and communities we serve. Therefore, we must continuously challenge ourselves to evolve and strive to build a long-lasting culture that fosters, promotes, and encourages diversity and inclusion, environmental sustainability, volunteerism and community involvement, and responsible gaming.”
Advancing Sustainability
Lowering Carbon Emissions
Everi has implemented recording and reporting protocols at its corporate headquarters and other office and manufacturing locations to monitor its environmental impact, and is setting long-term sustainability targets. Everi’s commitment to a reduced carbon footprint and preservation of precious water supplies includes using 100 percent renewable energy to host its data at SWITCH facilities. This 100 percent green energy supply is generated by Nevada solar farms and WECC hydroelectric plants.
Reducing Resource Consumption and Waste
As a smaller Company, Everi is still progressing in its development of measurement tools. Everi has focused its efforts on water and electricity conservation, paper usage, recycling and parts refurbishment, and consolidation of facilities. Everi currently has recycling partners for industrial material used in the manufacture of its products, including cardboard, electronics, pallets, batteries, packaging materials and metals, as well as consumer paper, plastics, and aluminum. In the Games business, Everi redeploys component parts and electronic gaming machines to the extent possible.
Strengthening Diversity, Equity & Inclusion
Increasing Board and Management Diversity
The efforts to support diversity in leadership at Everi start with the Board. Everi was recognized by 2020 Women on Boards (now 50/50 Women on Boards) as a Winning “W” Company for achieving at least 20 percent representation of women on its Board prior to the organization’s 2020 target date. Currently, 37 percent of Everi’s independent Board members are women and 25 percent are ethnically diverse.
Strengthening Employee DEI
Everi embraces and lives by one of its key Company values: inclusion. The Company provides leadership training on how to manage unconscious bias in the hiring process, including through a blind resume screening process for new applicants, removing certain demographic information from resumes before the initial review, focusing instead on the talent and qualifications of each applicant.
Investing in Communities
Expanding Education and Career Opportunities
Everi business leaders also support the NEWL program of the Women’s Research Institute of Nevada (WRIN) at UNLV, serving as mentors and offering internships to participating students to provide exposure to the business and to develop the leadership skills of young women.
Everi also provides ongoing support of local charities and community organizations, having contributed to organizations such as those that support the needs of the LBGTQ community, at-risk children, individuals with disabilities, and many Native American organizations throughout North America.
Everi seeks to bring positive, lasting change to the communities where its employees and customers live and work. For instance, Everi is proud of its financial support of the First Americans Museum in Oklahoma City, which builds awareness of and provides education about the collective history of 30 First American Nations in Oklahoma, and of many Native American organizations throughout North America.
Women’s Leadership Initiative
The Women’s Leadership Initiative (WLI) at Everi offers new opportunities for growth and advancement at all levels of leadership. Launched in 2017, the WLI has included more than 145employees. WLI members participate in industry educational seminars and external networking experiences, including events through Global Gaming Women (GGW), an organization dedicated to enriching the professional lives of women in gaming through education, mentorship, and networking. All members are encouraged to lead WLI events and participate in networking activities with Company leadership, as well as the WLI-sponsored Mentorship Program which was expanded in 2022, as a result of its success, to include employees outside the WLI.
Responsible Leadership
Protecting and Empowering Customers
As a technology supplier to the industry, Everi encourages and promotes responsible gaming. Everi’s initiatives and Self Transaction Exclusion Program (STeP) enable casinos to enhance their promotion of responsible gaming while helping them comply with local laws in the prevention of problem gambling. Everi’s CashClub Wallet™ also includes velocity and transaction limit tools as a supplement to its existing STeP program.
To further its commitment to responsibility and provide its casino operator customers a toolset designed to efficiently maintain compliance with various tax reporting and anti-money laundering requirements, the Company has developed Everi Compliance® AML, a platform with features such as quick alerts, currency transaction and suspicious activity report filing, auditable logging, and tax form generation. These compliance features can similarly be utilized by casinos in support of their responsible gaming initiatives, including Merchant STeP programs.
Establishing and Following Rigorous Business Standards
Everi’s Code of Business Conduct, Standards and Ethics contains the Company’s policies on privacy and data protection, anti-money laundering, environmental sustainability, social responsibility, diversity and inclusion, human rights, supplier diversity, workplace safety and health, and responsible gaming. As Everi continues to grow, innovate, and build a culture based on the principles of respect and transparency, and be a transformative force in the gaming supplier market, it is the Company’s duty to its customers, its business associates, the communities it serves, and the Company itself to uphold the highest standard of ethical conduct, integrity, and compliance in all that it does.
Protecting Human Rights
Similarly, Everi’s Supplier Code of Conduct outlines its values and expectations of vendors and their subsidiaries, officers, directors, employees, and agents that supply goods and/or services to Everi. The Company’s Supplier Code of Conduct reinforces its commitment to the improvement of economic, environmental, and social conditions through its business activities, including on human rights and labor practices, environmental regulations, protection, and health and safety.
Everi Cares Giving Module
To continue Everi’s commitment to community and provide its casino operator customers with a way to complement their own corporate social responsibility initiatives and support their communities, the Everi Cares™ Giving Module is a platform that allows casino patrons to donate change from redeemed vouchers. Everi’s customers and their patrons have embraced the concept of the Giving Module and the potential impact from each donation of change. To date, Everi’s customers’ patrons have made donations to approximately 125 regional and national charities through the Giving Module.
Washington, D.C. – Nationwide commercial gaming revenue totaled $14.81 billion in Q2 2022, according to the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker. The total sets a new quarterly record for the industry, beating Q4 2021 by 3.3 percent.
With $29.16 billion generated through the first half of the year—a nearly 18 percent year-over-year increase—2022 is on pace to set a new annual record for commercial gaming revenue for the second consecutive year.
“Q2’s results mark a 16-month period of gains for commercial gaming,” said AGA President and CEO Bill Miller. “With increasingly difficult year-over-year comparisons, our strength through the first half of 2022 reflects sustained consumer demand for legal options as well as gaming’s record popularity.”
The industry’s growth rate softened throughout the second quarter, with the pace of monthly year-over-year gains slowing from 13.1 percent in April, to 10.7 percent in May, and 2.5 percent in June—demonstrating stabilizing consumer demand and the return to normal gaming operations one year ago.
Twenty-two of the 31 commercial gaming jurisdictions operating during the same period last year experienced revenue increases in Q2 2022. Nine states reported all-time quarterly highs: Arkansas, Iowa, Maryland, Massachusetts, Nevada, New York, Oklahoma, Oregon and Pennsylvania.
Traditional casino gaming continued to drive the industry’s success, with both brick-and-mortar slots and table games seeing quarterly revenue records. While slot machine revenue was up 0.2 percent year-over-year, revenue from table games jumped 18.2 percent, indicating the lingering impact that COVID restrictions had on table games in the first half of 2021. In the first six months of the year, traditional casino gaming generated $23.67 billion in revenue, 11.7 percent ahead of the first half of 2021.
The sports betting sector also continues to grow. Consumer demand coupled with six new state market launches over the last year put the vertical up 58.7 percent from Q2 2021. The $3.04 billion in sports betting revenue thus far in 2022 is a 63.9 percent year-over-year increase.
Meanwhile, the six operational U.S. iGaming markets generated $1.21 billion in Q2 2022, narrowly beating the vertical’s previous record set in Q1 2022. With the addition of one market, the $2.42 billion in commercial iGaming revenue generated through June is a 43.5 percent jump over the same period in 2021—the vertical’s highest-grossing year.
“While on pace to set an annual revenue record, we are cognizant of the continued impacts of inflation and labor challenges as well as marketplace concerns of potential recession,” said Miller. “Our members have proven their agility and resilience over the last two years and are well-positioned to face these potential headwinds heading into the second half.”
AGA’s Q2 2022 commercial gaming revenue report comes on heels of the National Indian Gaming Commission’s announcement that tribal operators generated an all-time of high of $39 billion in gaming revenue in 2021. Combined with commercial gaming’s $53 billion in revenue, 2021 beat the previous record held in 2019 by 13 percent.
“Tribal gaming demonstrated its responsible leadership throughout the pandemic and these record results reflect that commitment,” concluded Miller. “The full recovery and ongoing success of tribal casinos goes well beyond the casino floor to support vibrant communities across the country.”
WASHINGTON – Today, the American Gaming Association (AGA) released the latest white paper in its ongoing efforts to promote regulatory reform, providing an in-depth look at regulatory modernization efforts in five gaming jurisdictions.
Highlights from the new white paper, Advancing Regulatory Modernization: Building on a Record of Success, include:
- Ohio and Michigan abandoned their decades-old regulations on the shipment of gaming machines, providing costs savings and streamlined shipping processes;
- Nevada has allowed customers to open unified wagering accounts for financial transactions relating to multiple forms of casino gaming, a critical first step toward meeting consumer expectations for seamless, simple financial tools; and
- Pennsylvania and Mississippi increased the ownership share that triggers the need for an institutional investor to acquire a gaming license, improving gaming companies’ access to capital without raising the regulatory burden.
“Change truly is the new normal in our industry, with each year bringing innovative casino games, delivery systems, customer identification processes and more,” said Sara Slane, senior vice president of public affairs for the American Gaming Association. “As technology continues to disrupt the gaming world, regulatory reinvention must keep pace. Smart regulatory reforms improve our industry’s ability to accommodate changes in the marketplace, provide a seamless experience for consumers and create greater efficiencies for regulators and businesses.”
Background: Driving an efficient regulatory reform process is part of AGA’s strategic goal to create a more favorable business environment for gaming in each state. Across the country, more than 4,000 dedicated public servants are responsible for regulating all forms for gaming. AGA’s regulatory reform initiative is designed to eliminate burdensome regulation that bogs down business and regulators alike. Learn more about the Next Generation policy initiative here. AGA plans to send a copy of today’s white paper to U.S. gaming regulators.
About AGA: The American Gaming Association is the premier national trade group representing the $261 billion U.S. casino industry, which supports 1.8 million jobs nationwide. AGA members include commercial and tribal casino operators, gaming suppliers and other entities affiliated with the gaming industry. It is the mission of the AGA to achieve sound policies and regulations consistent with casino gaming’s modern appeal and vast economic contributions.
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AGS
“At AGS, we cultivate a culture of integrity and commit ourselves to do things the right and responsible way, prioritizing culture, pursuing operational excellence and advancing a sustainable future. We are committed to continuous improvement as it relates to our ESG profile, and we will continue to consider best practices that we may be able to implement in the future.” – David Lopez, President and Chief Executive Officer
Advancing Sustainability
Reducing resource consumption and waste
AGS advances sustainability in several ways. AGS employs recycling and reuse programs at all major facilities, including for metals and electronics, recycling more than 90 percent of materials unable to be repaired or reused, such as ferrous and non-ferrous alloys and copper. The company also promotes refurbishment and reuse whenever possible to reduce environmental impact; more than 50 percent of outgoing AGS products are built with refurbished components, including major game components such as bill validators, printers, displays, major metal components, light fixtures, processor control boards (“PCB”) and others. In product design, AGS updates its designs to incorporate lower-energy components such as LED lighting and more efficient power supplies.
Strengthening Diversity, Equity & Inclusion
Strengthening Employee DEI
AGS strives to create a working environment that fosters diversity, inclusion and a sense of belonging in all it does. While proud of consistent progress in hiring, advancing and retaining women and people of color, AGS acknowledges there is more it can do to become more diverse at all levels of the organization by providing more opportunities for women and minorities. Within the senior executive team, 50 percent of AGS’ leaders are people of color, the same proportion as its global employee base. In the United States, approximately 40 percent of AGS employees are diverse, consistent with the U.S. population.
AGS’ diversity, equity and inclusion task force is called I.D.E.A. Squad, for “Inclusion, Diversity, Equality & Acceptance.” The role is to empower people, inside the Company and in their communities, by respecting and embracing what makes each of us different, no matter our age, gender, ethnicity, religion, disability, sexual orientation, education or national origin. I.D.E.A.S. focuses on four key issues:
- Creating opportunities in underprivileged communities.
- Encouraging diversity of thought.
- Promoting education on the topics of racism and discrimination.
- Celebrating diversity across various company channels.
AGS annually conducts diversity training for all employees globally, focused on the changing workplace and unconscious bias, and offers participation in Apollo and McKinsey Black Leadership Academy Management Accelerator to help equip aspiring leaders of color with the tools and support to achieve their professional aspirations.
Diversity Speaker Series
With a focus on promoting education on the topics of racism and discrimination, AGS launched a virtual diversity speaker series for employees globally. These fireside chat-style discussions feature AGS and external leaders to provide AGS employees with a better understanding of the challenges that people of color face in the workplace, school and professional sports and offer valuable insights and spur meaningful conversations.
Support for Veterans
AGS received the highest honor for supporting veterans in the workplace — the 2019 Gold Medallion and 2021 Platinum Medallion through the U.S. Department of Labor’s HIRE Vets program, the only federal-level program that recognizes companies for recruiting, employing and retaining U.S. military veterans. AGS was the only gaming company to receive the prestigious Platinum Medallion and one of only five companies in Nevada to be recognized. This award reinforces focus on veteran recruiting and on supporting the veterans who work for AGS, as well as their families, through connection to veteran resources in local communities.
Investing in Communities
Addressing Critical Community Needs
AGS actively engages in the communities where it does business. In addition to financial contributions to civic and community organizations, AGS fosters a culture that encourages employees to give their time and talents year-round. AGS actively supports literacy programs, disadvantaged schools, food banks, homeless and abused women and children shelters, holiday adopt-a-family initiatives, the elderly, veterans, and numerous other worthwhile causes. AGS also encourages employees to bring their professional expertise to programs that further STEAM (science, technology, engineering, arts, and mathematics) education.
Expanding education and career development opportunities
Through the University of Nevada at Las Vegas’ International Gaming Institute, AGS supports Battle Born Girls Innovate, an educational program named after the Nevada state motto for middle school and high school girls. Throughout the year, AGS executives meet with the young women to introduce AGS, demystify success in STEAM fields, and provide the teen women with a forum to engage with female role models. Through laptop donations, financial support and mentorship, AGS also supports the International Gaming Institute’s Young Executive Scholars Hospitality & Tourism Program for under-resourced high school students that includes a rigorous summer course of applied learning, team collaboration and mentor-guided, case-study analysis of the global hospitality tourism industry.
For the second year in a row, AGS is participating in a youth mentorship program with Club Christ, a non-profit with a mission to empower Las Vegas youth. Their program helps students from low-income families stay academically engaged and achieve their dreams of attending college. Lessons learned during the first year of AGS’ participation in the program included feedback from the teens that their AGS mentors helped them understand the importance of healthy relationships and lifestyle choices; better attitudes about school; increased educational aspirations and enhanced self-esteem and self-confidence. For the AGS mentors, positive outcomes included improved interpersonal skills, stronger empathy and a deeper understanding of youth problems, and a sense of accomplishment by positively impacting the life of another person – helping youth achieve their potential and discover their strengths.
AGS provides annual financial support to Global Gaming Women, an independent charitable organization that delivers high impact programs and events centered on the development of women in the gaming and lottery industry.
Responsible Leadership
Establishing and following rigorous business standards
Through memberships in the American Gaming Association and Association of Gaming Equipment Manufacturers, AGS supports and promotes research-based policies on responsible gaming and provides financial support to several responsible gaming operators, including the International Center for Responsible Gaming, the National Council on Problem Gaming, the Nevada Council on Problem Gambling, The Problem Gambling Center, and GamCare in the United Kingdom. In addition, AGS provides its employees with a no-cost, confidential employee assistance program called The Life Connection (TLC) which provides confidential consultation and counseling services on matters related to alcohol, drugs or gambling addiction.
Washington, D.C. – The American Gaming Association (AGA) released a new resource, Preventing and Combating Human Trafficking in the Gaming Industry, a first step from its newly founded Anti-Human Trafficking Task Force which aims to bolster gaming industry efforts.
“The AGA, our members, and the entire gaming industry are committed to stamping out all forms of human trafficking,” said AGA President and CEO Bill Miller. “Through the Anti-Human Trafficking Task Force, we will continue to bring the industry together to defeat this evil and pervasive human rights offense.”
The guide builds on efforts by hospitality and nonprofit partners and the U.S. Departments of Homeland Security, Justice and Treasury to guide the industry on applying anti-human trafficking practices including:
- Educating individuals on what constitutes human trafficking, the risks it poses to the gaming industry, and how to intervene.
- Empowering gaming employees to act when they notice human trafficking.
- Preventing human trafficking from occurring at—or being facilitated through—gaming operations.
- Addressing the specific needs of gaming executives as they institute anti-trafficking policies.
- Protecting patrons and employees from human trafficking.
The resource specifically addresses areas such as sex trafficking and forced labor; trafficking myths and realities; state and federal anti-trafficking laws and enforcement; anti-money laundering measures; and best practices for preventing, spotting and responding to trafficking at commercial and tribal gaming operations.
AGA members are actively applying anti-trafficking protocols today, including displaying property signage and training employees, partnering with shelters and nonprofits, and working with law enforcement.
“While many gaming companies already have robust anti-human trafficking policies, this guide will serve as an essential tool for the industry to assess and strengthen its current protocols,” said Alex Costello, AGA’s vice president, government relations. “Today’s announcement marks the first step in the task force’s ongoing work to enhance the gaming industry’s anti-trafficking efforts.”
The task force will continue to advance industry anti-trafficking efforts in the coming months by co-hosting regional events, participating in educational sessions at Global Gaming Expo 2022 (Oct. 10-13), and driving to-be-announced activations during National Human Trafficking Prevention Month in January 2023.
Comprised of AGA member executives with expertise in security, hospitality, anti-money laundering compliance, legal and other specialized sectors of the gaming industry, the AGA Anti-Human Trafficking Task Force’s mission is to develop robust casino-specific tools and guidance that are practical in their application to make progress against human trafficking in gaming. Participating AGA member companies include Bally’s Corporation, Boyd Gaming, Delaware North, FireKeepers Casino Hotel, GeoComply, MGM Resorts International, Penn National Gaming, Rush Street Gaming, Seminole Hard Rock, South Point Las Vegas and Wynn Resorts.
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WASHINGTON, D.C. – The American Gaming Association (AGA) announced today that it has added six new companies as Board-level members, welcoming BMM Testlabs, Choctaw Casinos and Resorts, Golden Entertainment, GVC Holdings PLC, Paddy Power Betfair and The Stars Group to the AGA Board of Directors.
“More than ever before, AGA’s diverse membership reflects the broad interests of the casino gaming industry,” said Geoff Freeman, president and CEO of AGA. “Adding these six industry leaders will help our ability to serve as an effective advocate for the industry as a whole, and we’re excited to add their expertise to our Board.”
- BMM Testlabs: BMM Testlabs is a highly experienced private independent gaming testing laboratory working in the gaming industry globally for over 36 years.
- Choctaw Casinos and Resorts: Owned and operated by the Choctaw Nation of Oklahoma, Choctaw Casinos & Resorts feature a variety of gaming, hotel and resort properties throughout southeastern Oklahoma.
- Golden Entertainment: Golden Entertainment, Inc. owns and operates gaming properties across two divisions – resort and casino operations and distributed gaming. The company operates approximately 16,000 gaming devices, 114 table games, and 5,162 hotel rooms, and provides jobs for more than 7,200 team members.
- GVC Holdings PLC: GVC Holdings PLC (LSE: GVC) is a multinational sports betting and gaming group. GVC is a constituent member of the FTSE 250 with its shares traded on the Main Market of the London Stock Exchange. GVC is licensed to operate in New Jersey through bwin.party.
- Paddy Power Betfair: Paddy Power Betfair is one of the world’s leading sports betting and gambling operators, formed from the 2016 merger of Paddy Power and Betfair Group PLC
- The Stars Group: The Stars Group is a leading provider of technology-based products and services in the global gaming and interactive entertainment industries. Through its Stars Interactive Group gaming division, The Stars Group ultimately owns gaming and related consumer businesses and brands, including PokerStars, PokerStars Casino, BetStars and Full Tilt.
In addition to joining as a Board-level member, BMM Testlabs and AGA have entered into a multi-year strategic alliance to provide the AGA and its members value through increased engagement and expertise sharing on regulatory issues. BMM has been a long-standing AGA member and actively engaged on AGA’s Sports Betting Task Force and Next Generation Gaming Policy Working Group. Through this strategic relationship, BMM will play a greater role in helping to support AGA strategic priorities, including driving an efficient regulatory reform process and supporting policies that promote industry reinvestment and innovation.
“We’re excited to be working more closely with the AGA and its membership to help advance industry priorities like regulatory reform,” said BMM Global President and CEO Martin Storm. “As our industry seeks to learn more about these new opportunities, we look forward to educating key stakeholders including regulators, legislators, suppliers and operators across the global gaming landscape.”
About AGA:
The American Gaming Association is the premier national trade group representing the $240 billion U.S. casino industry, which supports 1.7 million jobs in 40 states. AGA members include commercial and tribal casino operators, suppliers and other entities affiliated with the gaming industry. It is the mission of the AGA to achieve sound policies and regulations consistent with casino gaming’s modern appeal and vast economic contributions.
WASHINGTON – The COVID-19 pandemic had a significant impact on the gaming industry in 2020, causing a 31 percent drop in commercial gaming revenue and a significant shakeup in the top 20 casino markets. While the pandemic overwhelmed traditional gaming sectors, the industry experienced monumental growth in emerging verticals like sports betting and iGaming. All of last year’s shifts in the commercial gaming landscape at both the state and national levels are covered in detail in American Gaming Association’s (AGA) State of the States 2021: The AGA Survey of the Commercial Casino Industry.
Highlights from the report include:
- 2020 marked the industry’s lowest total annual revenue since 2003, with consumer spending on commercial gaming falling to $29.98 billion, down 31 percent from 2019.
- All 25 states with physical commercial casino gaming reported lower revenue than in 2019.
- Americans legally wagered $21.5 billion on sports, compared to $13 billion in 2019. Revenue from legal sports betting operations increased 69 percent to $1.5 billion.
- The Baltimore-Washington, D.C. gaming market is now the third largest in the country, surpassing Chicagoland and trailing only the Las Vegas Strip and Atlantic City. The Gulf Coast, St. Louis and Shreveport/Bossier City markets all jumped several spots in the top 20 rankings.
“The gaming industry faced enormous challenges in 2020 – and we also saw significant changes, as player demographics shifted and emerging verticals saw strong growth,” said AGA President and CEO Bill Miller. “From sharp revenue declines, to booming legal sports betting activity and overwhelming voter enthusiasm behind gaming, this year’s report reflects both the highs and lows of the past year.”
During the first two months of 2020, U.S. commercial gaming revenue was up 11.4 percent compared to the same time in 2019. However, due to mandated casino closures and capacity restrictions, revenue fell significantly for the remaining 10 months of the year, beginning in March when all U.S. casinos shuttered due to the COVID-19 pandemic.
Collectively, America’s commercial casinos lost more than 45,600 business days due to pandemic-related closures last year, meaning they were closed for approximately 27 percent of the year on average.
By the end of the year, 19 states plus the District of Columbia had active legal sports betting markets. Despite land-based casino closures and the suspension of major sporting events in the spring, sports betting saw significant growth, with Americans legally wagering more than $21.5 billion on sports last year.
In a survey conducted in April 2020, AGA member company executives, including commercial and tribal operator and supplier CEOs and CFOs, estimated a revenue decline of slightly more than 40 percent in 2020 and a timetable for recovery of up to two years. Q1 2021’s commercial gaming revenue numbers tied for the highest-grossing quarterly total ever, suggesting a quicker recovery than anticipated.
“The first quarter of 2021 clearly shows that consumer interest in gaming never waned, despite the challenges of 2020,” said Miller. “This momentum is a direct result of our industry’s ability to provide safe environments for our employees and guests to return to and is a strong indicator that our recovery is on the horizon.”
About the Report
AGA’s annual State of the States report details the commercial gaming industry’s financial performance, including analyses of each of the 29 states and the District of Columbia that had commercial gaming operations in 2020. The report, developed with VIXIO GamblingCompliance, also provides a breakdown of the legality of types of gaming and number of casinos by state, summarizes major gaming policy discussions and previews opportunities and challenges for the industry. The companion State of Play map provides the report findings in an easy-to-use, interactive tool.
Background
- State of the States is a reference guide focusing on the commercial casino sector. Tribal casinos are subject to different reporting requirements and timelines and revenue figures for 2020 were not available at the time of this report’s publication
- COVID-related restrictions on casino capacity and amenities vary on a state and local level. AGA’s COVID-19 casino tracker is tracking casino capacity restrictions on a state-by-state basis.
Photo Credit: © Chon Kit Leong / Alamy Stock Photo
WASHINGTON – Gaming revenue for the U.S. commercial casino industry reached an all-time high of $41.7 billion in 2018, up 3.5 percent from the previous year, according to data released today in the American Gaming Association’s (AGA) State of the States 2019: The AGA Survey of the Commercial Casino Industry.
Key findings from the State of the States 2019 report include:
- The commercial casino sector—with 465 casinos—logged its fourth consecutive year of gaming revenue growth and outpaced the national economic growth rate in 2018;
- The industry generated $9.7 billion in gaming taxes for state and local governments, a number that does not account for the billions more in sales, income and other taxes that benefit communities; and
- Half of the 24 states with commercial casinos reported record annual gaming revenue with nearly every state seeing gains in 2018, contributing to the strength of local economies across the country.
“Year after year, the commercial casino industry has reaffirmed its role as an economic powerhouse in the United States,” said Bill Miller, president and CEO of the American Gaming Association. “More people than ever are experiencing the economic and social benefits of gaming in their communities, due in part to the expansion of legal sports betting across the country.”
The rapid expansion of legalized sports wagering following the Supreme Court decision to overturn the Professional and Amateur Sports Protection Act (PASPA) in May 2018 played a role in the industry’s record year. Total industrywide revenue from sports betting grew to $430.2 million in 2018, up from $261.3 million in 2017. AGA anticipates this growth to continue as additional states legalize and regulate sports wagering.
“Growth in the commercial gaming sector enables the industry to continue to reinvest in communities, enhance partnerships with small businesses and nonprofits and provide career opportunities for nearly two-million American workers,” Miller added.
AGA’s annual State of the States report details the commercial gaming industry’s financial performance, including analyses of each of the 24 states with commercial gaming operations. The report, developed with Gambling Compliance, also provides a breakdown of the legality of types of gaming and number of casinos by state, summarizes major gaming policy discussions and previews opportunities and challenges for the industry.
About the American Gaming Association:
The American Gaming Association (AGA) is the premier national trade group representing the $261 billion U.S. casino industry, which supports 1.8 million jobs nationwide. AGA members include commercial and tribal casino operators, gaming suppliers and other entities affiliated with the gaming industry. It is the mission of the AGA to achieve sound policies and regulations consistent with casino gaming’s modern appeal and vast economic contributions.