The American Gaming Association (“AGA”) has revealed that commercial gaming revenue in the United States grew year-over-year 8.1% on Q2 2022, marking the tenth consecutive quarter of annual growth.

Second quarter revenue hit a Q2 record of $16.07 billion, making it the second-highest grossing quarter in the United States gambling industry’s history, topped only by Q1 2023. As a result, H1 is comfortably the strongest half year of all-time. The total revenue generated in H1 2023 was $32.71 billion, up 11.9% year-over-year.

The AGA estimates that approximately $7.28 billion has been contributed in tax revenue by the gaming industry to state and local governments in the first half of 2023 alone. At current pacing, 2023 will produce record tax revenue on a yearly basis.

AGA figures reveal that land-based gaming revenues still account for over 75% of total commercial revenue, but the country is experiencing gradual channel shift as legalization of online gaming and online sports betting continues to roll-out.

Q2 revenue from land-based slots, table games and retail sports betting rose 0.9% year-over-year to $12.38 billion. The key growth driver was revenue from online, up 43.1% year-over-year to $3.68 billion.

The AGA attributes the growth in part to legalization of the following:

Total sports betting revenue for Q2 totaled $2.3 billion, an industry record for any second quarter and a large 56.6% increase year-over-year. Online casino also grew 22.5% year-over-year to $1.48 billion despite glacial legalization.

23 of the 34 operational gaming jurisdictions that report data to the AGA reported increased year-over-year commercial revenue.

“While commercial gaming is on track for an unprecedented third consecutive year of record revenue, the lasting impact we’re making on our communities through this record growth is even more impressive,” said AGA President and CEO Bill Miller.

“These results are a clear indication that our post-pandemic recovery wasn’t a fluke: the gaming sector continues to thrive, and when we do well, our communities do well,” continued Miller. “To sustain this momentum, the AGA will continue enlisting more allies in our fight against the illegal market, bolstering responsible gaming, and building a business environment that allows our innovative industry to bring world-class entertainment to adults across America.”