US Casino Gambling Hits Record Highs as iGaming Thrives

The U.S. gambling industry is experiencing unprecedented growth, with both online and brick-and-mortar casinos setting new revenue records. Data released this week by the American Gaming Association (AGA) highlights a significant 7.5% year-over-year increase in total commercial gaming revenue, driven largely by the booming online casino and sports betting sectors. This surge marks a historic milestone for the U.S. gaming industry, as it adapts to evolving consumer preferences and the expanding digital landscape.

• US commercial gaming revenue increased by 7.5% in 2024, driven by a 28.7% rise in online casino revenue.
• Land-based casinos set a new single-year revenue record with nearly $49.8 billion in 2024, despite modest growth.
• States with legalized iGaming, like New Jersey and Michigan, saw significant year-over-year revenue increases, supporting the coexistence of online and physical gambling.

Online Gambling Dominates Revenue Growth

Online casinos have been at the forefront of this growth, with revenue surging by 28.7% in 2024 compared to the previous year. The fourth quarter of 2024 was particularly robust, showing a 33.1% increase. This trend points to the continuing maturation of the iGaming market in the U.S., as online platforms capitalize on growing consumer interest and more states legalizing digital gambling. In total, the online casino segment generated a record-breaking $8.4 billion in 2024, with the fourth quarter contributing nearly $2.4 billion alone.

While these figures may raise alarms among critics who fear that iGaming could cannibalize physical casinos, the numbers tell a more nuanced story. The American Gaming Association's latest report underscores the resilience of brick-and-mortar casinos, which continue to thrive despite the rise of their online counterparts.
Brick-and-Mortar Casinos Maintain Strong Performance

In 2024, land-based casinos set a new single-year revenue record, generating almost $49.8 billion in total revenue. Though the full-year growth for physical casinos was a modest 0.8%, the fourth quarter saw a more promising 2.3% increase. While some may perceive these incremental gains as indicative of iGaming’s negative impact, they actually suggest that concerns about the decline of traditional casinos have been overblown.

The U.S. gambling market is large and diversified enough to support both in-person and online gaming. The latest revenue figures demonstrate that physical casinos remain a key part of the landscape, with the in-person segment still accounting for 70% of total commercial gaming revenue in 2024.

Regional Breakdown Shows iGaming’s Expanding Reach

The AGA report also breaks down commercial gaming revenue by state, highlighting the growing success of iGaming in markets with legalized online gambling. States with established online casino markets, such as New Jersey, Michigan, and Pennsylvania, have seen some of the largest increases in both quarterly and yearly revenue.

New Jersey, the country's largest iGaming market, continued its impressive performance in 2024, bringing in over $6.3 billion in revenue for the year, a 9.8% increase from 2023. Michigan, which also boasts a robust online casino market, saw its revenue grow by 17.1% year-over-year to $4.2 billion.

Connecticut, despite its relatively smaller size and tourist base, saw a remarkable 31.3% year-over-year increase in commercial gaming revenue, totaling $761.3 million in 2024. Meanwhile, states like Nevada, which has legalized online casino gaming but has yet to expand beyond online poker, saw more modest growth. Nevada's commercial revenue reached $15.6 billion for 2024, up just 0.5% from the previous year, demonstrating the influence of factors like tourism and the slower adoption of online casino games.

The state-level breakdown also reveals that iGaming is not causing the significant cannibalization feared by critics. In fact, these states’ performance suggests that the growth of online casinos is largely additive, contributing to the overall expansion of the U.S. gaming market without undermining the success of land-based casinos.

MGM Resorts, one of the largest operators of both physical and online casinos in the U.S., offers a useful case study of how the growth of iGaming and physical casinos can coexist. The company's latest earnings report shows a flat performance for its regional operations, which include land-based casinos in Detroit and Atlantic City. However, the company reported a 6% revenue increase for its regional operations in Q4 2024 compared to the same period in 2023. Overall, MGM posted a marginal increase in Q4 2024 revenues compared to 2023, and an 8% rise for the full year.

These numbers suggest that MGM's physical casinos continue to thrive, with the company benefiting from both its traditional operations and its iGaming platforms. The broader industry trend, where online gambling is largely additive rather than competitive with land-based casinos, is further supported by MGM's performance.

The evidence overwhelmingly suggests that iGaming is largely additive, contributing to the overall expansion of the U.S. gaming market without undermining the success of land-based casinos.

A Bright Future

The AGA's latest revenue report highlights the growing strength of the U.S. gambling market, which is benefiting from both physical and online casino gaming. While some critics continue to argue that iGaming may erode the revenues of traditional casinos, the evidence overwhelmingly suggests otherwise. As both sectors reach new heights, it is clear that the U.S. gambling industry is evolving to meet the needs of a diverse and expanding audience, with online and in-person experiences complementing each other rather than competing for market share.

With both iGaming and brick-and-mortar casinos experiencing record revenue growth, the future looks promising for the U.S. gambling industry. As more states legalize online gambling and technological advancements continue to shape the market, it seems likely that this dual growth will continue, solidifying the industry's position as a major economic force in the U.S.