The online gaming business is growing from the third quarter of 2024 in the United States. The American Gaming Association (AGA) reported that combined online sports betting and iGaming revenue increased 37.9% year over year in the third quarter.
Online betting reaches US$5.14 billion in the quarter
The $5.14 billion from online gaming represented 29% (“a significantly larger share than Q3 2023”) of the $17.7 billion in total gaming revenue, an 8.1% increase over to the previous year.
Online gaming operators also saw their profits increase by 33.9% compared to the second quarter of 2024.
Expansion into Kentucky, Maine, North Carolina, and Vermont spurred growth. Online betting generated $30.3 billion and produced $3.24 billion in revenue in the third quarter. This 42.4% annual profit increase marked the highest among all sectors in the quarter.
Excluding new markets, sports betting still grew 28% year over year. While iGaming accounted for $2.08 billion, a 30.3% year-on-year increase, of Q3’s total gaming revenue.
“The third quarter of 2024 continued the gaming momentum of the first half of the year, with online casino and sports betting driving strong growth,” said AGA Vice President of Research David Forman.
“More than a quarter of business revenue now regularly comes from online sources. This shows the importance of continued sustainable growth with consumers in these states,” he added.
Ranking of states
According to data compiled by the AGA, 29 of the 35 gaming jurisdictions available for the third quarter increased revenue year-over-year.
Nevada led all states with $3.8 billion in profits, while Pennsylvania and New Jersey surpassed $1.7 billion during the quarter. However, in New York, which doesn’t have iGaming like the two neighboring states ahead of it, it raised almost $1.3 billion, a 10.8% year-over-year increase.
The AGA reported that the largest third-quarter increase from 2023 to 2024 was 426% in Washington. Nebraska, Oregon and Wyoming, states with retail-only sports betting, saw at least 60% increases. Revenue in Connecticut, which offers online sports betting and iGaming, jumped 38%.
But in the third quarter revenue fell compared to the previous year in:
Gaming tax revenue rose 8.9% year-over-year, with operators paying around $3.79 billion in the third quarter.
Traditional games fall a little
This quarter marked the strongest period of growth since AGA began tracking these numbers. It was also the 15th consecutive quarter to see a year-over-year revenue increase.
While online gaming thrived, revenue from physical slots, table games and retail sports betting of $12.56 billion fell 0.6% in the third quarter. But slots revenue of $9.1 billion increased 1.3% year over year. On the other hand, table game profits fell 8.3% to $2.42 billion.
Fourteen of the 27 markets increased physical gaming revenue by an average of 8.5% in the third quarter. “The opening of new land-based casinos boosted traditional gaming, which still accounts for the majority of the sector’s revenue,” said Forman.