Online betting drives US gaming to historic Q3 milestone

The U.S. commercial gaming industry achieved record-breaking revenue in the third quarter of 2024, totalling $17.71 billion. This marks the highest Q3 performance on record and continues a 15-quarter streak of year-over-year revenue growth, according to data from the American Gaming Association (AGA). September 2024 also represented the 43rd consecutive month of annual revenue increases, reinforcing the sector’s robust upward trajectory.

From January through September 2024, the nationwide commercial gaming revenue reached $53.24 billion, outpacing the same period in 2023 by 8 percent. The industry appears ready to secure its fourth consecutive year of record-breaking revenue.

Online gaming fuels revenue boom

The surge in revenue was driven primarily by online gaming, which includes iGaming and online sports betting. Combined, these sectors generated $5.14 billion in Q3, accounting for 29 percent of the total revenue—a substantial increase from Q3 2023.

The iGaming sector saw a 30.3 percent year-over-year revenue growth, reaching $2.08 billion.

Legal online sports betting hit $30.3 billion in Q3, producing $3.24 billion in revenue, a 42.4 percent increase from the previous year. New market entries, including Kentucky, Maine, North Carolina, and Vermont, boosted the segment significantly.

, David Forman, noted, “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.”

Mixed results for traditional gaming

While online gaming flourished, traditional land-based gaming experienced a slight dip, with revenue totaling $12.56 billion—0.62 percent lower than Q3 2023.

Slot machine revenue increased by 1.3 percent to $9.10 billion, while table game revenue fell by 8.3 percent to $2.42 billion. Markets like Nebraska, Virginia, and Illinois saw gains due to new casino openings, while others like Florida and New Mexico reported declines due to weather events and increased competition.

Retail betting remained a consistent contributor but lagged behind its online counterpart.

Challenges in traditional markets, growth in new territories

Of the 35 jurisdictions with commercial gaming operations, 29 reported year-over-year revenue growth in Q3. However, some established markets, including Nevada and Mississippi, faced slight contractions, primarily offset by the success of new properties and expanding markets like Kentucky, which posted remarkable growth in its first full year of legalised sports betting.

Subscribe  to SiGMA’s Top 10 News countdown and SiGMA’s Weekly Newsletter to stay up to date with all the latest iGaming News, and benefit from Subscriber-Only Offers.