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Discover how the gaming industry reached unprecedented heights in 2023, breaking records and more

The gaming industry in the United States reached new heights in 2023, with commercial gaming revenue soaring to a record-breaking $66.5 billion, as reported by the American Gaming Association's (AGA) Commercial Gaming Revenue Tracker. This remarkable achievement marks the industry's third consecutive year of record revenue, signaling a period of unprecedented growth and prosperity.

Bill Miller, President and CEO of the AGA, attributed the industry's success to the increasing demand for gaming experiences among American adults. From traditional brick-and-mortar casinos to online platforms, the appetite for gaming entertainment has reached an all-time high, driving sustained momentum and expansion across the sector.

One of the key highlights of 2023 was the all-time high quarterly revenue of $17.4 billion in Q4, with December emerging as the highest-grossing month in industry history, generating $6.2 billion in revenue. This surge in revenue underscores the resilience and vitality of the gaming industry, even amidst changing market dynamics and evolving consumer preferences.

The commercial gaming landscape has undergone significant transformations, with online gaming accounting for nearly one-quarter (24.7%) of nationwide commercial gaming revenue in 2023, marking a new annual high. This growth reflects the increasing popularity and accessibility of online gaming platforms, which offer a diverse range of gaming experiences to players nationwide.

Traditional gaming, including brick-and-mortar casino slots and table games, grossed a record $49.4 billion in 2023, representing a notable increase of 3.3 percent over the previous year. Moreover, sports betting achieved unprecedented milestones in 2023, with new records set for handle ($119.8 billion) and sportsbook revenue ($10.9 billion), indicating the growing popularity and acceptance of sports wagering across the country.

In the realm of iGaming, online casino revenue witnessed robust growth, rising 22.9 percent year-over-year to $6.2 billion in the six states with full-scale legal iGaming operations. This expansion underscores the increasing convergence of digital and traditional gaming experiences, as players seek immersive and convenient gaming options.

The success of the gaming industry has not only led to record-breaking revenue figures but has also contributed significantly to state and local governments' revenues. In 2023, commercial gaming operators paid an estimated $14.4 billion in direct gaming revenue taxes, reflecting a substantial increase of 9.7 percent year-over-year. Additionally, the industry generates billions of dollars in additional tax revenue through income, sales, payroll, and corporate taxes, further bolstering state economies and funding critical public programs and infrastructure projects.

Bill Miller emphasized the industry's role as an economic driver, job creator, and vital source of funding for essential public services. With operations spanning 47 U.S. jurisdictions, gaming establishments play a pivotal role in driving economic growth, creating employment opportunities, and supporting communities nationwide.

In conclusion, the gaming industry's remarkable performance in 2023 underscores its resilience, adaptability, and enduring appeal among consumers. As the industry continues to evolve and expand, stakeholders remain committed to fostering responsible gaming practices, combating illegal operators, and driving sustainable growth and innovation across all sectors.