U.S. Gambling Revenue To Break $44 Billion Record In 2021 – Forbes

Betting on America: Revenue in the second quarter of 2021 hit a record of $13.6 billion. Table games and slot machines saw a 12% jump in revenue over the same quarter in 2019.

Americans are gambling their way through the pandemic.

U.S. gambling revenue hit $13.6 billion in the second quarter of 2021, a new industry record, according to data from the American Gaming Association. The revenue from states that allow gambling is up 22 percent from the previous record of $11.1 billion in the third quarter of 2019, months before the Covid-19 pandemic plunged the industry into a recession.

In 2019, gambling revenue hit a record of $43.6 billion but as the industry rolls towards a faster recovery than previously expected, 2021 is on track to surpass $44 billion in gambling revenue and become the highest-grossing year in the history of legal gambling. Year to date, states have collected nearly $25 billion.

The gaming industry is on its way back, says Bill Miller, the president and CEO of the American Gaming Association.

Nearly every state with casinos saw its gambling revenue surpass pre-pandemic levels in the second quarter. According to the AGA, 22 out of 25 states that have casinos recorded greater revenue in the second quarter of 2021 compared with the same time period in 2019. And 19 out 25 states collected more money in the first half of 2021 compared with the first half of 2019.

Nevada brought in the most money of any state with $3.46 billion in gambling revenue during the second quarter, up 17% compared with 2019. Pennsylvania is in second with $1.21 billion, up 44.6% and New Jersey collected $1.11 billion, up 35.5% compared with the same time in 2019.

Nevadas gambling industry has been on fire this year as it has beat all revenue records over the last four months. According to the Nevada Gaming Control Board, the state collected $1.2 billion in gambling revenue in June, which was thefourthconsecutivebillion-dollar monthand a 14.6% increase over June 2019. The Silver States $3.46 billion in casino revenue during the second quarter marks the largest quarterly gaming win in the states history.

While the Las Vegas Strip still needs convention business and international travel for a full recovery, American gamblers are spending enough money in Sin City to keep things afloat. Revenue from casinos on the Strip for second quarter of 2021 is the third highest of all time at $1.79 billion. According to Nevadas gaming authority. The quarter is up 8.3% compared with the same quarter in 2019. But year to date, the Strip is down 11% compared to the same time in June 2019, which means the tourist-dependent Strip still needs time to recover.

According to a report published by Fitch Ratings in early July, the Las Vegas Strip will fully recover in 2023, a full year earlier than the firm had previously anticipated.

Mobile sports betting and iGamingdigital poker, slots and other online gameshave helped keep the industry afloat, but in-person gambling at casinos are contributing to the industrys record-breaking quarter and faster recovery. Revenue from brick-and-mortar casinos are up nearly 10 percent from its previous high in the third quarter of 2019. Traditional casino games have seen a 12% jump in revenue from two years ago. Revenue from slot machines alone jumped 16% over the second quarter of 2019.

Revenue from iGaming, which is only legal in six states, also set a record with $901 million in revenue during the quarter, which is a 15% increase from the first quarter of 2021. For the first half of 2021, iGaming brought in $1.66 billion in revenue, which already surpassed the $1.55 billion in revenue collected in the entire year of 2020.

Sports betting, which is legal across 22 states and Washington, D.C., has continued its expansion across the U.S. Americans bet $889 million with legal sportsbooks in the second quarter, which is down from the first quarter. (March Madness helped buoy the first quarter.) Thanks to 10 more states launching legal sports wagering since the second quarter of 2019, revenue is up nearly 650%.

Big Score: Americans wagered $889 million with legal sportsbooks in the second quarter of 2021, which is up nearly 650% compared with the same quarter of 2019.

The growth has set off a frenzy of deals in the sports betting world. Last week, Penn National Gamingannounced an acquisitionof Canadian company Score Media, which owns the mobile sports betting app theScore, for $2 billion, and the real estate investment trust Vici Properties acquired MGMs real estate portfolio company for$17.2 billion. On Monday, DraftKingsannounced that it will acquire Golden Nugget Online Gaming in an all-stock deal valued at approximately $1.56 billion.

But Covid-19 and its variants are threatening the industry. Nevada just reinstated its mask mandate for all employees and guests, regardless of vaccination status. The industry also needs international travel and business conferences for a full rebound.

In any other environment, these quarterly numbers would be a victory lap, says Miller. But there are still a few missing pieces to the puzzle. A full recovery requires the meaningful return of meetings and events, as well as the revival of international travel. It requires everyone working together to move beyond the realities of the past year, and the Delta variant has reminded us that were not there yet.

When asked if the record-breaking numbers are sustainable, Miller says hes betting on football season.

As we eagerly await the return of football, I anticipate the numbers were seeing today will pale in comparison with whats to come, he says.

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U.S. Gambling Revenue To Break $44 Billion Record In 2021 - Forbes