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Both online sports betting and iGaming witnessed rapid US growth in 2023 despite a relative slowdown in new state launches, according to the American Gaming Association (AGA).

The US sports betting market grew 44.5% year-on-year to $10.9bn in 2023. This resulted from both continued maturation across existing markets, as well as launches in Ohio and Massachusetts.

Despite no new additional iGaming markets, segment revenue also rose 22.9% year-on-year across the six regulated states to $6.2bn.

Overall, this resulted in a 10% increase in total gaming revenue, including land-based offerings, to $66.5bn. This stands as the sector’s third consecutive record year.

Both Q4 and December 2023 also reported record totals, at $17.4bn and $6.2bn respectively.

“From the traditional casino experience to online options, American adults’ demand for gaming is at an all-time high,” said AGA president and CEO Bill Miller (pictured).

“Sustaining our momentum will take unified industry efforts around combating pernicious illegal operators and growing responsible gambling efforts in tandem with the growth of the legal market—both of which the AGA is committed to lead on throughout 2024.”

Trends from previous years continued. Online gaming was 24.7% of the total commercial gaming market share in 2023, a new annual high.

In keeping with the revenue growth, the commercial gaming industry saw an increase in tax revenue for state governments.

Operators paid an estimated $14.4bn in tax in 2023, up 9.7% compared to the previous year.

“Gaming’s success translates directly to the success of the states, cities and towns in which we operate,” added Miller.

“We are proud to be in 47 US jurisdictions, acting as economic drivers, creating jobs and providing the funding that makes critical public education programs, infrastructure projects, problem gambling resources and more possible.”

US gaming in 2024 and beyond

While the industry is likely to experience sporadic state launches in the years ahead, the largest potential US markets, California and Texas, see difficult prospects for immediate regulation.

With iGaming also failing to see significant expansion, online growth is likely to centre around continued market maturation rather than new state launches.

Early results from Penn-operated ESPN Bet indicated the business’ revenue was largely originating from customers new to OSB, rather than from competitors.

This indicates there is still a large pool of US consumers that operators have not yet been tapped.  

Threats include the possibility of a regulatory pushback amid rising concerns about problem gambling in US media and government.

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