Casino Revenue Slips as Percentage of GDP

While Igaming, Sports Betting Rise

From 2017 through 2024, total US primary gaming revenue has grown dramatically – from $73.2 billion to an estimated $114.8 billion. Data from the American Gaming Association shows combined commercial and tribal casino gross gaming revenue grew by 28%, from $72.7 billion to $93.2 billion. Over the same period, igaming grew from under $250 million to $8.4 billion. And sports-wagering revenue grew exponentially, to $13.2 billion in 2024.

From the above data, it may seem the gaming industry is expanding rapidly. It is important, however, to put revenue growth into context by evaluating the growth by sector over time against a benchmark. One benchmark Spectrum often uses when evaluating markets is gaming revenue as a percentage of gross domestic product (GDP).

This benchmark indicates that while industrywide gaming revenue increased from 0.36% of GDP to 0.39% of GDP over the study period, combined commercial and tribal casino revenue declined as a percentage of GDP – from 0.36% to 0.32%. Meanwhile, the igaming and sports-wagering ratios increased from essentially nothing to 0.03% and 0.04%, respectively, despite igaming being available in only seven states.

Conclusion: Data show the shift began during the Covid-19 pandemic. During this time, several factors combined to impact both the in-person and online gaming channels:

1. In-person casino play was legally restricted to help slow the spread of Covid;
2. Casinos scaled back promotions to lower-value players, resulting in reduced visitation (but improved margins);
3. The state-by-state rollout of sports betting – which had been greenlighted at the federal level less than two years before the pandemic began – accelerated, with the digital channel overwhelming the in-person channel; and
4. Igaming skyrocketed among the Big 3 – New Jersey, Pennsylvania and Michigan – with the latter two launching just before and after the pandemic period, respectively.

Spectrum will continue to monitor these important trends.

Want to know more? Contact Senior Vice President Matthew Roob at mroob@spectrumgaming.com or +1.609.926.5100, ext. 708.

About Spectrum Gaming Group: Spectrum is a non-partisan consultancy that specializes in the economics, regulation and policy of legalized gambling worldwide. Spectrum has provided independent research and professional services to public-sector and private-sector clients since 1993, having worked in 44 US states and territories and in 50+ countries on six continents. Employing renowned experts in every facet of the gaming industry, Spectrum serves state, tribal and national governments, casino operators, suppliers, regulators, developers, investors, law firms, and other gaming-related professionals in all sectors of the legalized gambling industry.