Despite the current economic situation our world finds itself in, people are gambling more than ever. According to data released by the American Gaming Association (AGA) earlier this month, the commercial casino industry (tribal casinos excluded) had its best quarter ever, bringing in over $15 billion from gamblers in the United States.
Powerball drawing reflective of gambling industry success
The data suggests that the American public finds gambling even more enticing during financial hardships or uncertain times.
David Schwartz, a professor and gambling historian at the University of Nevada Las Vegas, suggested how the appeal of gambling might increase during economic uncertainty.
“I think it speaks to the continuing appeal of gambling and that there may be even more appetite for it in uncertain times,” said Schwartz, citing the recent record-breaking $2.04 billion Powerball jackpot won on November 8th this year.
The jackpot earlier this month was the fifth time the Powerball topped $1 billion and was over $500 million larger than the previous record of $1.586 billion won by three players in 2016. The massive jackpot was won by one individual in southern California.
Report from AGA
According to data released by the AGA, out of the 33 states with legal gambling operational last year, 16 states had their best quarter yet. Despite the uncertain economic times our world is facing, people are wagering more on gambling than ever before.
During the third quarter, revenue from traditional casino games, sports betting, and iGaming reached $15.17 billion, breaking the record set in Q2 of this year by 2%.
Year over year, the $15.17 billion generated in quarter three this year represented an impressive 8.8% increase. Combined revenue from slot machines and table games at casinos made up for the majority of revenue generated during Q3, bringing in $12.27 billion, or 80.9 percent of total commercial gaming revenue. The revenue generated from land-based casino slot and table games was up 1.8% compared to the same period last year. Sports betting and iGaming were the next highest contributors to the total revenue generated during Q3, bringing in $1.68 billion (11.1%) and $1.21 billion (8%), respectively.
If Q4 continues with the same momentum as the first three quarters of this year, we will see the gambling industry set another record for the second consecutive year in a row.
Year to date, commercial gaming operators have generated total revenue of $44.48 billion. That figure is 14.7% ahead of the same period last year. Nearly every US state is on track to exceed 2021 revenue totals. Just three jurisdictions are currently trailing last year’s performance year to date, Washington, D.C. (down 20.1%), Mississippi (down 3.4%), and South Dakota (down 1 %).
Out of the 33 states with gambling operational a year ago, 29 experienced increased revenue during Q3 than Q3 of 2021. Sixteen US states set all-time records for a single quarter, including five of the country’s largest commercial gaming markets (Indiana, Michigan, Nevada, New York, and Pennsylvania).
According to the report released by the AGA, the gambling industry (excluding tribal casinos) has generated $44.38 billion year to date. Unsurprisingly, the top contributor toward the $44.38 billion YTD is Nevada, generating $11.026 billion from January 1st – September 30th. Behind Nevada sits Pennsylvania ($3.929 billion YTD), New Jersey ($3.869 billion YTD), New York ($3.079 billion YTD), and Michigan ($2.365 billion YTD).
Mac Daniel is a Michigan native and freelance writer for PlayOnlineCasino and PlayOnlineSportsBetting. He has experience writing about a wide variety of topics, including healthcare, tourism, non-profit organizations, and most recently casino and sportsbetting news. To check out more of his work, visit: playonlinemichigan.com