In the face of slowing revenue expansion, gaming industry leaders continue to hold an overall positive view of the current business situation, with a notable improvement in credit conditions, according to the latest American Gaming Association (AGA) Gaming Industry Outlook.
The majority of respondents (88%) view the current state of the gaming industry as either good or satisfactory. Meanwhile, executives have a more conservative outlook on future business conditions, with respondents split on whether they expect conditions to improve over the next three-to-six months (3% net positive) and many expecting a decrease in customer activity (28% net negative).
“After years of very strong consumer gaming spending growth, expectations around customer activity over the next three to six months have cooled considerably,” said AGA Vice President of Research David Forman. “Still, gaming businesses remain well positioned, with executives touting strong balance sheets and more viewing access to credit as easy than restrictive for the first time in two years.”
Gaming Executive Panel
Since Q1, gaming executives’ sentiment has shifted, with a greater number of respondents now expecting a decline in customer activity over the next three to six months (28% net negative, up from 4% net negative in Q1). Despite this, panelists foresee improvements in overall balance sheet health (34% net positive).
Additionally, more executives reported access to credit as easy (19%) rather than restrictive (3%) for the first time in two years, and fewer cite interest rates as a major limiting factor than in the spring.
- Hotel (56%) and food and beverage facilities (56%) continue to be the main and growing focus of capital investment among operators, followed by live entertainment (28%) and casino floor slots (22%).
- Meanwhile, gaming equipment suppliers now believe their pace of capital investment and game sales will decelerate (13% net negative).
These expectations are impacted by evolving macroeconomic challenges, with uncertainty of the economic environment vaulting to the top of executive concerns (56%, up from 34% in Q1), followed by state regulatory concerns (31%), and inflationary or interest rate concerns and geopolitical risk (both 34%).
The Current Conditions Index
The Current Conditions Index for Q3 2024 was 97.3, which is consistent with real annualized contraction of 2.7 percent. The Current Conditions Index measures real economic activity in the industry, as measured by gaming revenue, employment and employee wages and salaries.
The Future Conditions Index
The Future Conditions Index, a leading indicator of changes in industry conditions, measured 98.9 in Q3. This indicates an environment in which real economic activity in the gaming sector, after controlling for underlying inflation, is expected to moderately decrease over the next six months (1.1% annualized rate).
About the Outlook
The AGA Gaming Industry Outlook is prepared biannually by Oxford Economics. It provides a timely measure of recent industry growth and future expectations. The Q3 2024 survey was conducted between August 21 and September 6, 2024. A total of 32 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.
WASHINGTON – The American Gaming Association (AGA) today released a new study quantifying the expansive annual impact the casino gaming industry has on the U.S. economy. Conducted by Oxford economics, findings show the U.S. commercial and tribal gaming industry:
- Contributes $328.6 billion to the U.S. economy.
- Supports 1.8 million jobs and $104 billion of wages and salaries across the country.
- Generates $52.7 billion in tax revenue to federal, state and local governments.
“The U.S. gaming industry delivers long-term growth and impact to communities, generating significant tax revenue, creating strong jobs, supporting local small businesses, and funding critical community priorities,” said AGA President and CEO Bill Miller during State of the Industry remarks at G2E 2023.
According to the report, America’s gaming industry directly employs more than 700,000 people in the U.S. Put in context with the broader U.S. economy:
- Gaming provides more direct jobs than the air transportation, postal service or motion picture and video sectors.
- Direct casino employment accounts for 1 in 33 leisure and hospitality jobs.
The $53 billion in taxes generated by the gaming industry provides critical funding for local public programs and services, including education, infrastructure and economic development, as well as supplemental revenue for state general funds.
Recent, related AGA research shows the economic benefits generated by gaming are widely recognized by Americans, with a record 71 percent of adults saying the casino gaming industry has a positive impact on the U.S. economy.
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Background
- 45 states and the District of Columbia currently offer commercial and/or tribal gaming markets including casino gaming, sports betting and iGaming.
- AGA’s Commercial Gaming Revenue Tracker shows that 2023 industry revenue through July is pacing 11 percent ahead of 2022’s record revenue year for commercial gaming.
- AGA’s State of Play Map charts gaming’s economic impact, industry regulations and casino locations on a state-by-state basis for both the commercial and tribal gaming sectors.
Washington, D.C. – U.S. commercial gaming revenue reached $17.71 billion in Q3 2024, the industry’s highest-grossing Q3 on record, according to the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker. This makes Q3 2024 the industry’s 15th consecutive quarter of annual revenue growth, with September marking the 43rd straight month of rising year-over-year commercial gaming revenue.
Through the first nine months of the year, nationwide commercial gaming revenue stands at $53.24 billion, pacing 8.0 percent ahead of 2023 and putting the industry on track for a fourth straight record revenue year.
In Q3 2024, 29 of the 35 commercial gaming jurisdictions operational last year saw increased year-over-year revenue. This growth resulted in an 8.9 percent year-over-year increase in state and local taxes tied directly to gaming revenue, with commercial gaming operators contributing $3.79 billion in taxes across the quarter.
Quarterly revenue from land-based gaming – encompassing casino slots, table games and retail sports betting – totaled $12.56 billion, 0.62 percent lower than Q3 2023. Meanwhile, combined revenue from online sports betting and iGaming totaled $5.14 billion in Q3 2024 as online gaming made up 29.0 percent of commercial gaming revenue, a significantly higher share than in Q3 2023.
Looking at each sector in Q3 2024:
- Traditional Gaming: Traditional brick-and-mortar casino gaming generated quarterly revenue of $12.38 billion, a contraction of 0.9 percent year-over-year.
- Legal Sports Betting: Americans legally wagered $30.3 billion on sports, generating $3.24 billion in quarterly revenue (+42.4% YoY). Recent market launches in Kentucky, Maine, North Carolina and Vermont contributed to this growth.
- iGaming: iGaming generated $2.08 billion in revenue, marking a 30.3 percent year-over-year increase.
“Q3 2024 continued gaming’s momentum from the first half of the year, with online casino and sports betting driving strong growth. At the same time, new brick-and-mortar casino openings bolstered traditional gaming, which still accounts for the bulk of industry revenue,” said AGA Vice President of Research David Forman. “More than a quarter of commercial revenue now regularly comes from online sources, raising the importance of continued sustainable growth with consumers in those states.”
AGA’s report estimates that Americans bet more than $510.9 billion a year with illegal and unregulated operators. This costs the legal industry $44.2 billion in gaming revenue and state governments $13.3 billion in lost tax revenue.
The legal gaming industry is among the most highly regulated industries in America. Whether it is financial solvency and other licensing requirements, know your customer or anti-money laundering regulations, legal gaming operators and suppliers comply with thousands of laws and regulations designed to ensure consumer protections and confidence in the gaming market.
Illegal and unregulated gambling operators do not follow any of these standards, which exposes consumers to severe risk and undermines the economic and tax contributions of the legal gaming industry. Unlike legal operators, illegal operators also don’t pay a dime in taxes.
AGA’s report, Sizing the Illegal and Unregulated Gaming Markets in the U.S., estimates that Americans bet more than $510.9 billion a year with illegal and unregulated operators. This costs the legal industry $44.2 billion in gaming revenue and state governments $13.3 billion in lost tax revenue.
Sports Betting Findings
AGA’s report estimates that Americans wager $63.8 billion with illegal bookies and offshore sites at a cost of $3.8 billion in gaming revenue and $700 million in state taxes. With Americans projected to place $100 billion in legal sports bets this year, these findings imply that illegal sportsbook operators are capturing nearly 40 percent of the U.S. sports betting market.
The report also finds that 49 percent of past-year sports bettors have placed a bet with an illegal operator. Previous AGA research shows that more than half of Americans that bet on sports with illegal operators believe they are wagering legally.
iGaming Findings
Americans wager an estimated $337.9 billion with illegal iGaming websites, with a loss of $3.9 billion in state tax revenue. With $13.5 billion in estimated revenue, the illegal iGaming market in the U.S. is nearly three times the size of the legal U.S. iGaming market, estimated to be $5 billion in 2022.
With iGaming only legal in six states, nearly half of Americans (48%) that have played online slots or table games in the past year have played with illegal online casinos.
Unregulated and “Skill Machine” Findings
Unregulated gaming machines, including so-called “skill machines,” also continue to proliferate, with an estimated 580,651 unregulated machines in the U.S. With 870,000 regulated machines in casinos and slot routes, that means 40% of all gaming machines in the U.S. are unlicensed.
Based on state regulatory data for similar machines, the operator win percentage on unregulated gambling machines is significantly higher than legal casino slot machines. During the past 12 months, slot machines in Nevada have a 7.16 percent win rate, compared to a nearly 25 percent estimated win rate for unregulated machines—demonstrating how unregulated machines take advantage of customers.
“All stakeholders—policymakers, law enforcement, regulators, legal businesses—must work together to root out the illegal and unregulated gambling market. This is a fight we’re in for the long haul to protect consumers, support communities and defend the law-abiding members of our industry.” - AGA President and CEO Bill Miller
Methodology
The study was conducted by The Innovation Group on behalf of the American Gaming Association and is based largely on a survey of 5,284 U.S adults, examining their past-year gambling behaviors with both legal and illegal operators as well as their observations of unregulated gaming machines. It also incorporates publicly available data on the size of the legal U.S. gaming market and certain state gaming machine markets.
WASHINGTON, D.C. – The Washington Football Team has joined the American Gaming Association’s (AGA) Have A Game Plan.® Bet Responsibly.™ public service campaign, making it the first National Football League (NFL) team to partner with the AGA to promote responsible sports betting.
The Washington Football Team will connect Have A Game Plan in-stadium activations, sponsored content on washingtonfootball.com, and campaign promotion on the team’s upcoming preseason radio and television broadcasts.
“With legal sports betting now permitted across our region, we are ensuring responsible gaming serves as a foundation for how we engage in this exciting commercial market,” said Washington Football Team’s Chief Partnership Officer Scott Shepherd. “We’re not only proud to partner with the AGA, the architect of Have A Game Plan, but also proud to lead by educating fans as they enjoy football in an engaging, new way.”
“Getting sports betting right is a shared responsibility for everyone involved,” said AGA Senior Vice President Casey Clark. “The Washington Football Team’s partnership demonstrates their leadership and commitment to making responsibility core to their sports betting strategy. Today’s announcement puts Have A Game Plan in front of more fans and is a step further in building a responsible, sustainable legal market.”
The season-long campaign will launch during the team’s first home preseason game on August 20 versus the Cincinnati Bengals. The Washington Football Team’s preseason radio and television broadcasts will include 20-second spots encouraging fans to bet responsibly and directing fans to AGA’s Have a Game Plan website for resources and other information.
Sports betting is now legal and live in 22 states and the District of Columbia. During the NFL season, six additional states are expected to launch. The NFL has a long-standing partnership with the National Council on Problem Gambling.
The AGA launched Have a Game Plan in late 2019 to educate sports fans on the principles of responsible sports betting. As the first NFL team to join the campaign, the Washington Football Team joins official campaign partners DraftKings, FanDuel, Monumental Sports and Entertainment, NASCAR, NHL, PGA TOUR, Sightline Payments, Sinclair Broadcast Group, Vegas Golden Knights, and UFC.
About the Washington Football Team
Headquartered at Inova Sports Performance Center in Ashburn, Virginia, and owned by Dan and Tanya Snyder since 1999, the historic Washington Football Team has won five World Championship titles including the 1937 and 1942 National Football League Championship games, as well as Super Bowls XVII, XXII and XXVI. Founded in 1932 in Boston, Massachusetts, the team relocated to Washington, D.C. in 1937. Since then, the Washington Football Team has become one of the most recognizable professional sports franchises in history, featuring multiple Hall of Fame coaches, 19 members of the Pro Football Hall of Fame, and one recipient of the Walter Payton Man of The Year Award, Darrell Green. Since 1997, the Team has played their home games at FedExField, a multi-purpose stadium located in Landover, MD.
To mark the 20th anniversary of Responsible Gaming Education Week (RGEW), the American Gaming Association (AGA) hosted a roundtable in Atlantic City, NJ to highlight the industry’s commitment to this important issue.
Resources
Press Coverage Summary
CDC Gaming Reports – AGA Unites with Gaming Leaders to Underscore Industry-Wide Commitment to Responsible Gaming
CDC Gaming Reports – AGA: As gaming continues to evolve, so must responsible gaming efforts
Press of Atlantic City – American Gaming Association releases responsible gaming code
Seminole Gaming & Hard Rock
“Hard Rock and Seminole Gaming are built on shared values, expressed in our mottos Unconquered Vision, Love All Serve All, Take Time to Be Kind, and All is One. We draw upon our rich heritage of community investment, philanthropy and responsible gaming to grow and evolve who we are with expanded efforts in the areas of DEI and sustainability.”
Advancing Sustainability
Lowering Carbon Emissions
100 percent of surveyed Hard Rock properties utilize some form of renewable energy, and six properties source between 25 and 100 percent of energy from renewables. More than 80 percent of properties have a plan to reduce energy along with various HVAC efficiencies.
In 2019, Hard Rock joined the WWF’s Earth Hour Movement. In 2021, it conserved more than 200,000 kilowatts of energy. 24 hotels, 10 casinos, and 67 cafes participated by turning off non-essential lights for an hour and hosting special performances and events. In 2020, proceeds from a co-branded “Save the Planet” t-shirt made with recycled yarns to reduce greenhouse gas emissions contributed $50,000 to WWF’s conservation programs.
Reducing Resource Consumption & Waste
The “Save The Planet” motto has been a part of Hard Rock Seminole’s culture for decades, inspiring positive sustainability action, operational improvements, energy and water efficiency and diverted waste. Hard Rock Seminole forges partnerships with environmental organizations and best practice collaborations with vendors.
To date, 83 percent of surveyed properties have fully eliminated plastic straws, have implemented water efficient technologies, and eliminated a guest-facing waste item or replaced it with an environmentally friendly version.
Since 2018, Hard Rock has partnered with Clean the World, converting containers of leftover soap and hygiene products into Clean the World Hygiene Kits. Kits are donated to shelters, disaster recovery organizations and food pantries to help fight preventable diseases worldwide. To date, the program has diverted 13,660 pounds of plastic waste and distributed almost 66,370 bars of soap.
Strengthening Diversity & Inclusion
Strengthening Employee DEI
Hard Rock and Seminole Gaming work to be the employer of choice for diverse talent and are building a culture of inclusion and driving equitable practices. Chairman and CEO Jim Allen’s commitments to DEI began in December 2020 with the selection of Stephanie Piimauna, SVP & Chief Diversity & Inclusion Officer. She immediately began to develop and implement a a robust and comprehensive DEI strategy.
The company has instituted programs to support diverse hiring and the development and advancement at the manager, director, vice president and above levels. In addition, a diverse slate policy and diverse sourcing strategy is underway. The company has also enhanced career advancement programs for Women in Leadership as well as the Tribal Career Development Program.
Beginning in January 2022, new workforce demographic dashboards will allow the company to track and report diversity progress as well as employee engagement.
Supporting Racial Equality and Social Justice Efforts
Seminole Hard Rock developed and launched ongoing unconscious bias workshops in 2021 for all employees. With a measurable goal of 20 percent employee participation by the end of 2022, these interactive experiences focus on minimizing the impact of bias in day-to-day practices and actions.
Save the Planet Practice Library
Harnessing the power of Hard Rock’s global footprint, the Save the Planet Practice Library shares best sustainability practices across casinos, hotel and cafes by presenting short case studies implemented by at least one of Hard Rock’s 200+ properties. The library outlines the business case for implementing initiatives like introducing re-fillable water bottles, diverting waste and working with community partners. The library is updated regularly, sharing ideas that lead to immediate action worldwide.
Investing in Communities
Delivering in Times of Crisis
To support team members during the pandemic, the Seminole Tribe of Florida and Hard Rock International contributed more than $90 million to continuation of pay, benefit extensions and grocery gift cards during closures.
Love All-Serve All
Hard Rock’s Love All-Serve All philosophy guides its philanthropic activities aimed at advancing environmental sustainability, social conditions, health, wellness, economic well-being and disaster relief.
The Hard Rock Heals Foundation has invested more than eight million dollars in causes including autism awareness, cancer prevention, human trafficking prevention, hunger relief, children’s hospice care, elderly learning, cognitive training, peace-building in war-torn regions and improving socioeconomic circumstances. The foundation supports programs that inspire people’s connection to music, including education, artistic development, culture, history and performance.
PINKTOBER: $10 Million+ raised for breast cancer research and education over 20 years
FIGHT AGAINST HUNGER: $6.8 million raised in partnership with WhyHunger since 2018 to combat global hunger and poverty,
HARD ROCK HEALS: $8 million+ invested to support music-based programs and partnerships around the world.
Responsible Leadership
Protecting & Empowering Consumers
Responsible gambling succeeds when education helps prevent risk for new, casual and regular players, and when those experiencing risk and harm get the help they need.
Seminole Gaming and Hard Rock’s award-winning PlayersEdge program measures interactions employees have on the gaming floor, message-reach for players, and helping those who need resources to find them. To date, PlayersEdge has delivered:
- 10 percent increase in casino players seeking treatment based
- 3+ million educational impressions
- 18,234 team members trained online
- 1,502 supervisors trained in classroom
- 92 percent evaluation scores of training
The Hard Rock Game Plan Challenge has reached more than 14,000 U.S. high school students in classrooms across 47 states, teaching them to avoid risks common to both social/console games and gambling. Hard Rock also partners with and funds gambling addiction services in Florida.
Training Employees
Hard Rock and Seminole Gaming’s PlayersEdge casino team member training program received the 2020 National Council on Problem Gambling Corporate Responsibility Award, an annual recognition for one organization that has demonstrated outstanding commitment to social responsibility as it relates to problem gambling.
Anti-Human Trafficking
To combat human trafficking, Seminole Gaming and Hard Rock have implemented training and education programs across all managed and franchised casinos, hotels and casino-hotels. Training 27,000+ team members have been trained to detect and respond to signs of trafficking
In November 2021, Hard Rock launched the Social Identity Quest (SIQ) in partnership with ECPAT-USA. Across U.S. high schools, youth are challenges youth to examine how they express themselves online and reduce the risks of being lured. To date, 300,000+ students have completed SIQ in 44 states
On average, students demonstrate a 12 percent increase in online safety literacy, based on evaluation of learning.
Washington, D.C. – The American Gaming Association (AGA) board of directors elected Michael Rumbolz, Executive Chair of the Board of Everi Holdings Inc., as the association’s new chairman. He will succeed Hard Rock International Chairman and Seminole Gaming CEO Jim Allen, who has served as AGA chairman since January 2022. Rumbolz begins his two-year term in January 2024.
“I am grateful for the opportunity to help shape gaming’s future as the AGA’s next chair,” said Rumbolz. “From stopping illegal gambling to evolving responsible gambling, the AGA is tackling transformational issues and I am eager to build on the progress made during Jim’s tenure.”
Working from a busboy to the c-suite, Rumbolz’s career spans all levels and aspects of the gaming industry with experience encompassing gaming equipment manufacturing and distribution; hotel and casino operations; casino fintech; digital gaming; and gaming legislation and regulation. Rumbolz previously served as President and CEO of Everi, Member and Chairman of the Nevada Gaming Control Board, and Chief Deputy Attorney General of Nevada.
“It’s an honor to welcome Mike—an industry legend in his own right—as the next AGA chairman,” said AGA President and CEO Bill Miller. “Mike’s career as an operator, manufacturer and regulator is unparalleled and will be vital to driving meaningful progress on industry priorities.”
During Allen’s tenure as chairman, the AGA supported the industry’s record-setting COVID recovery while working to evolve the industry’s approach to responsible gaming and launching a new effort to stop illegal gambling.
“Jim’s knowledge, insight and guidance have helped the AGA advance our mission and maximize our impact for the industry. He’s been a trusted advisor to me, and I am thankful for his partnership over the last two years,” Miller continued.
“Our industry and this association have never been stronger. I am immensely proud of our success over the last two years accelerating gaming’s recovery while defining and advancing new priorities,” said Allen. “The AGA is well-positioned under Mike and Bill’s leadership.”
WASHINGTON – American Gaming Association (AGA) President and CEO Bill Miller delivered remarks today on the future of gaming’s recovery, policy developments for gaming in Washington, DC, and AGA’s priorities for 2021.
Miller cited vaccine distribution, responsible reopening, and consumer confidence as reasons for optimism in the coming year, “There’s huge pent-up demand for gaming—and I’m upbeat about the second half of the year in particular. As vaccines roll out, people will be excited to travel, hungry for entertainment, and desperate to get out and have fun again. That’s an environment where gaming will thrive.”
AGA research shows one-in-three American adults plan to visit a casino in 2021—the highest rate since the AGA began tracking last March. Eighty percent of future casino visitors agree the industry has done a good job at safely reopening.
Miller emphasized that the AGA’s singular agenda in 2021 is accelerating the gaming industry’s recovery, highlighting four areas of focus:
- Securing additional COVID-19 economic relief for the industry through temporary liability protections, investment in travel and tourism, supportive tax policy, and additional tribal relief.
- Developing gaming champions on Capitol Hill and in the Biden administration.
- Blocking harmful policies and advance specific reforms to enhance industry competitiveness.
- Using proprietary research and strategic communication efforts to ensure the gaming industry is heard.
“We come into 2021 with a strong foundation, a clear focus, record levels of support among Americans, and a loyal customer base that wants the excitement only gaming can deliver,” concluded Miller.
Miller’s remarks referenced three new AGA resources that were released today:
- AGA’s Accelerating Gaming’s Recovery priorities, which provide industry stakeholders with a detailed outline of the association’s 2021 priorities.
- Casinos & Communities: COVID-19 Response, which spotlights first-hand accounts of how the gaming industry has supported its communities, aided frontline workers, and responsibly reopened throughout the pandemic.
- Miller’s letter to the 117th Congress, which highlights AGA’s economic importance to the U.S. economy and details gaming’s federal policy agenda for accelerating recovery.
Advocacy in action
AGA unites the American gaming industry to advance a policy agenda that ensures gaming thrives and contributes to local communities. We advocate for casino operators, manufacturers, suppliers, and employees, speaking for the industry on a range of business, legislative, and regulatory issues.
Policies
Congressional Gaming Caucus
The Congressional Gaming Caucus, co-chaired by Representatives Guy Reschenthaler (R-PA) and Dina Titus (D-NV), serves as a key advocate for the gaming industry on Capitol Hill. Through collaboration with AGA, the bipartisan, geographical diverse caucus champions policies that support responsible growth, protect jobs, and ensure the industry’s ongoing success across the country.
AGA PAC
Strengthen the gaming industry’s efforts to foster congressional champions. With countless interests competing for attention in today’s political environment, AGA’s bipartisan political action committee (PAC) raises awareness and extends the gaming industry’s reach in Washington, D.C.
This critical tool gives our industry the edge it needs to support lawmakers who share the industry’s perspective on key issues.