The second quarter of 2024 has marked another milestone for the US gaming industry, with gross gaming revenue (GGR) reaching an impressive $17.63 billion. This represents an 8.9% year-on-year increase, driven by both traditional and online gaming expansions. At MK Sports, we’re always keeping a close eye on industry trends, and this quarter’s performance has been nothing short of remarkable.
Casino Expansions and Their Impact
The American Gaming Association (AGA) attributes much of this growth to the expansion of casinos in states like Illinois, Nebraska, and Virginia. These developments have contributed to a 1.8% increase in traditional casino GGR, pushing it to $12.49 billion. As new venues open and existing ones expand, the industry continues to show resilience and growth, reflecting the enduring popularity of land-based gaming.
Surge in Sports Betting and iGaming
One of the standout figures from Q2 is the sharp rise in sports betting GGR, which soared by 35.3% year-on-year to $3.16 billion. This surge underscores the growing enthusiasm for sports betting across the United States, a trend that MK Sports has also observed in our own operations. The increasing accessibility of sports betting platforms, coupled with heightened consumer interest, has significantly boosted revenue in this sector.
iGaming also experienced substantial growth, with GGR increasing by 25.2% to $1.97 billion. The online gaming sector, which includes both igaming and online sports betting, continues to expand, though at a moderating pace compared to previous years. Nonetheless, the consistent growth in these areas highlights the importance of digital platforms in the modern gaming landscape.
Record-Breaking Quarter
Q2 2024 has not only maintained a streak of 14 consecutive quarters of year-on-year growth but also delivered the highest-grossing Q2 performance on record. Although slightly below the Q1 2024 revenue record of $17.7 billion, this quarter’s figures are a testament to the industry’s resilience and adaptability.
For the first half of 2024, total GGR climbed by 7.7% to $35.48 billion. Traditional casino gaming revenue rose by 1.1% to $24.83 billion, while sports betting and igaming showed even more robust growth, with increases of 28.7% and 25.6%, respectively.
The Shift Towards Online Gaming
While land-based gaming continues to be a significant revenue driver, online gaming is becoming increasingly influential. The growth rate for online gaming, including both igaming and online sports betting, reached 32.5% year-on-year, surpassing the growth rate of 21.8% observed in Q1. However, it’s worth noting that this growth is moderating, with a slight decrease compared to the previous year’s nearly 44% expansion.
Online gaming accounted for 28.6% of commercial gaming revenue in Q2, a slight dip from the past two quarters. This shift reflects a balance between the continued relevance of traditional gaming and the rising importance of digital platforms. At MK Sports, we’re committed to staying ahead of these trends, ensuring that our offerings in both physical and online spaces meet the evolving needs of our customers.
Tax Contributions and Economic Impact
In addition to revenue growth, the gaming industry’s contributions to public finances have also increased. Commercial gaming operators paid an estimated $3.73 billion in taxes tied directly to gaming revenue in Q2 2024, marking a 4.0% year-on-year increase. These contributions underscore the gaming industry’s role as a significant economic driver in the United States.
The AGA’s Commercial Gaming Revenue Tracker, which compiles data from state regulatory reports, highlights that 24 of the 33 jurisdictions with complete data available until June saw increased Q2 revenue compared to 2023. However, some regions, such as Oklahoma, experienced contractions due to specific local challenges like the closure of Will Rogers Downs in June.
Conclusion: A Dynamic and Growing Industry
The Q2 2024 performance of the US gaming industry illustrates the dynamic nature of the market, with both traditional and online sectors contributing to overall growth. At MK Sports, we recognize the importance of staying attuned to these trends, as they provide valuable insights for shaping our strategies in sports betting and gaming. As the industry continues to evolve, we remain dedicated to delivering top-tier experiences through the MK Sports app and our wide range of offerings.