AGA – State of the States 2020
Commercial Gaming Industry sees record revenue, 3.7% growth in 2019
In stark contrast to the COVID-19 pandemic’s devastating impact on gaming, 2019 further solidified the US gaming industry’s role as a vital economic engine for states and local communities. The AGA’s State of the States report shows U.S. commercial casino gaming industry revenue topped US$43.6 billion in 2019, up 3.7 percent from 2018.
Key Findings
2019 marked the fifth consecutive year of commercial gaming revenue growth, helped in part by the expansion of legal sports betting.
- US$43.6 billion generated in commercial gaming revenue in 2019 – the fifth-straight year of revenue growth
- US$10.2 billion paid in gaming taxes to state and local governments, with billions more supported in sales, income, and other taxes. This is a 4.1% increase from 2018 and does not account for the billions more in sales, income, and other taxes from gaming that benefit communities.
- 21 of 25 commercial gaming states experienced year-over-year revenue increases, with 14 states reporting annual records, with Massachusetts (+163.1%), New Jersey (+19.5%), and Arkansas (+15.1%) reporting the largest jumps.
The US$10.2 billion in taxes benefit the states and communities in which casinos operate by funding education initiatives, health insurance programs, infrastructure and economic development projects, responsible gaming programs, and more. State-by-state breakdowns of the distribution of gaming taxes can be found in the report.
Gaming taxes are enough to support the annual education cost for 832,000 elementary and secondary school students.
“The results from 2019 reflect the continued mainstreaming of casino gaming and increased access to legal, regulated gaming options for Americans all across the country,” said Bill Miller, AGA president and CEO. “Today’s economic realities were hard to imagine even a few short months ago as, ahead of the COVID-19 pandemic, 2020 was shaping up to continue this trend of remarkable growth for the industry.”
The increases in gaming revenue and taxes can be attributed in part to the continued expansion of legal sport betting, which 14 states legally offered in 2019. Americans wagered more than US$13 billion on sports with legal operators in 2019, resulting in legal U.S. operators earning US$908.9 million in sports betting revenue. This is more than double the US$430.7 million revenue in 2018.
In 2019, the top 15 commercial casino markets by total gaming revenue maintained their previous rankings, but there was significant jostling for positions between the 16th and 20th largest markets. The downtown Las Vegas market overtook Shreveport/Bossier City for the 16th largest market. Meanwhile, the Pittsburgh/Meadowlands area surpassed New Orleans for the 19th spot on the list.
Top Five Gaming Markets
21 of the 25 commercial gaming states reported increases in annual gross gaming revenue (GGR) from the previous year. The largest increase came in Massachusetts, reflecting the June opening of the state’s second casino-resort just outside of Boston. The steepest decline came in Louisiana amid expanded competition in neighbouring states. Fourteen states—Arkansas, Florida, Iowa, Kansas, Maine, Maryland, Massachusetts, Michigan, New York, Ohio, Oklahoma, Pennsylvania, South Dakota, and Rhode Island—recorded record gaming revenue.
Top Five Year-Over-Year Gaming Revenue Increases
The COVID-19 pandemic changed that outlook. In a matter of weeks, all 989 commercial and tribal properties across the U.S. closed their doors, sports betting froze as professional sports leagues suspended play worldwide, and casino suppliers saw business evaporate.
Through research 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 lengthy timetable for recovery of up to two years.
“The American gaming industry has proven time and again that we are resilient,” Miller continued. “Through natural disasters, human tragedy, and economic downturns, we have always rallied around each other and our communities, ensuring we not only recover, but thrive. American gaming can and will recover to regain the momentum that carried through 2019. State and local economies rely on it.”
State of the States 2020 is the definitive economic analysis of the U.S. commercial casino industry and its significant economic impact in the 25 U.S. states with commercial gaming operations. For each of the 25 jurisdictions, the report analyses gaming revenue and gaming taxes generated by commercial casino locations for the calendar year 2019.
The report provides a breakdown of the legality of types of gaming and the number of casinos by state, summarizes major gaming policy discussions, and previews opportunities and challenges for the industry. AGA’s State of Play map provides the report findings in an easy-to-use, interactive tool.
Note, tribal casinos are subject to different reporting requirements and timelines. According to the most recently available data from the National Indian Gaming Commission, the tribal gaming sector’s revenue reached US$33.7 billion in 2018.
