The American Gaming Association (AGA) released some good news for the US casino market this week, reporting that the best May month ever for commercial casinos. This was also the gaming industry’s second-best all-time in history. The continued growth of online sports betting is a big part of this success, as Americans continue to wager millions of dollars on their favorite teams each year.
US Casino’s Performance
Total commercial land-based gaming revenue (GGR) increased to $5.1 billion during May, including iGaming and sports betting showing a 9.5% increase compared to May 2021 numbers, after a strong start in the beginning of the year.
It is also the second-best month on record, behind only March 2021. Every state with commercial casinos posted year-over-year growth except Louisiana, which was down 0.17%. The top five markets by GGR were Nevada ($98 million), Pennsylvania ($92.0 million), Michigan ($83.0 million), Illinois ($66.0 million), and Indiana ($61.0 million).
May was the fourth consecutive month of growth for the online casino industry and brings year-to-date GGR to $21.76 billion, up 11% from the first five months of 2021.
Online Sports Betting Numbers
Retail and mobile sportsbooks also show impressive figures as AGA reported nearly $488 million in revenue. Despite the fact that several states have yet to legalize internet sports betting, and some don’t even have a bill pending, the industry continues to develop.
The five largest markets for internet sports betting were: New Jersey ($303.0 million), Pennsylvania ($141.0 million), Colorado ($41.0 million), Indiana ($37.0 million) and Iowa ($24.0 million). These states, not coincidentally, have also had the longest to develop their industries and offer both retail and online sports betting.
There is still a long way to go before the industry catches up to its potential but the figures are very encouraging. The AGA will continue to monitor and report on the development of commercial casino gaming in the United States.
Future Slow Down Due To Inflation
These findings preceded record-high June inflation rates, which hit 9.1 percent, the highest 12-month rise in 40 years, and an increase from 8.6% in May. Despite the fact that inflation has been a concern throughout 2022, the gaming industry’s momentum may slow down due to the surge in consumer prices continuously.
Speaking at CNBC’s Evolve Global Summit on Wednesday, MGM Resorts International CEO Bill Hornbuckle said that he expects inflation and rising gas prices to have a significant impact on total gaming revenue and earnings in the future, although the effect has been so far minor.
“What’s happened over the last 18 months has literally been historic, but if you look at how we thought we would be performing against how we are performing, we’re exactly where we thought we would be,” Hornbuckle stated.