US Casino Revenues: Which State Brings The Major Income?

Casinos

In general, gambling is legal in the United States, although there are significant restrictions on interstate and online gambling. 

The only exceptions are Utah and Hawaii, as all forms of gambling are completely banned there. 

The main indicator of the success of the gambling business in the country is GGR.

A Short Guide on Gross Gaming Revenue

Gross Gaming Revenue (GGR) is one of the main indicators of the success of the gambling business, reflecting the difference between all players’ bets and their winnings.

The legal gambling business pays part of the GGR to taxes, so the more bets the casino customers make, the more money the state will earn.

US Gambling Industry Revenues in 2021 

The American Gaming Association has published the US gambling revenue figures as for the second quarter of the year 2021. The industry ended the reporting period with a profit of $ 13.6 billion. And for the year, the expected amount of profit should be $ 44 billion.

This is a new record in the field of gambling. Let’s briefly cast a glance at the previous years records, so that it would be possible to compare the vector of the industry development. 

As tempting as this business may look, it also has its drawbacks. First of all, it is a limited opportunity to get a loan from a bank to set up a business. They are issued mainly only to leaders in their industry, the rest have nothing to hope for.

In addition, in the United States, gambling business owners often enter into an unspoken conspiracy. So, for example, quite recently the owners of all casinos stopped giving out free alcoholic drinks to players.

You also need to get a special license, which is not always easy and fast. In the United States, there are only three types of them: 

  • Limited
  • Unlimited, and 
  • Special.

2019 Gambling Revenues Records

The previous record was set in the third quarter of 2019, when the income from gambling in the states was estimated at $ 11.1 billion.

In 2019, the annual income generated by gambling in the United States rose up to a record of $ 43.6 billion. Experts predict that in 2021 this figure will amount to more than $ 44 billion.

Over the past three months, the state of Nevada earned the most from gambling in the United States — $ 3.46 billion, which is 17% more than in 2019. 

Pennsylvania is known to occupy the second place (with $ 1.21 billion and an increase of 44.6%). 

The third place is assigned to New Jersey ($ 1.11 billion and an increase of 35.5%).

Revenue from land-based casinos did not grow so much, but online sports betting and digital gambling facilities, including online slot machines and poker helped keep the industry in balance.

The full recovery of the Las Vegas gambling business should take place in 2023.

As known from the official stats, gambling industry of the USA brings $ 70.7 million as a Service sector value added to the Gross Domestic Product (GDP). 

In compliance with the most recent stats on the gross revenues by the casinos in the US, there are three leader states in gambling:

However, that’s the data provided as of the year 2020. What about 2021?

US Gambling Revenues and COVID

The American Gaming Association has released US gambling revenue figures for the second quarter of 2021. The industry ended the reporting period with a profit of $ 13.6 billion. And for the year, the expected amount of profit should be $ 44 billion.

The association said that the proceeds from the implementation of gambling were recorded in the amount of $ 13.6 billion, which is 26% more than the same indicator in 2019. 

At the same time, the gaming union notes that the indicators of the first half of 2021 are truly impressive. Analysts are even more surprised that US gambling establishments showed the lowest revenue last year.

Note that in the US, casinos are allowed in 19 out of 25 states. For the first half of 2021, financial indicators significantly exceeded those of 2019, even despite the fact that the restrictions on the number of visitors were canceled not so long ago (at the end of June of this year).

In a pandemic situation this year (the rapid spread of the delta virus), the number of players may decrease. The authorities will be forced to restrict visits to gambling establishments, which could “hit” the casino’s revenue. 

However, online sports betting and digital online gambling casinos, including internet poker, slots, etc., are predicted to help keep the industry in place.

Despite all the problems associated with COVID-19, the gambling industry in the United States began to return to pre-pandemic levels very quickly.

Onland Casinos Revenues in 2021

In April 2021, as Vuk Mujović states, the revenue of the three major land-based casinos — Plainridge Park Casino, MGM Springfield and Encore Boston Harbor — totaled $ 85 million, the commission noted.

Plainridge Park Casino is equipped with Category 2 slot machines and is taxed at 49% of GGR. Of this amount, 82% is paid to local health care and 18% to the Racehorse Development Fund.

MGM Springfield and Encore Boston Harbor — Category 1 resort casinos — are taxed at 25% of GGR. This money goes to several government funds.

To date, Massachusetts has received about $ 767 million in taxes since the launch of these three casinos.

Online Gambling Revenues Growth

Casino and bookmaker revenues in the second quarter of this year reached a record high in the history of the industry. Mass media representatives refer to the message of the American Gaming Association.

According to some of the media resources, the unprecedented revenue growth is due to the increased activity of players who are trying to catch up with the pandemic last year. 

Thus, the revenue of American gambling establishments for the first half of the year amounted to $ 24.8 billion. At the same time, for the entire past 2020, casinos were able to raise only $ 30 billion.

According to a recent report from the Las Vegas Convention and Visitors Authority, the number of visitors to Las Vegas in July this year has grown by more than 120% if compared to July 2020.

Nevertheless, there were still 10.4% fewer tourists in the city than in July 2019.

The annual revenue record was recorded two years ago and amounted to $ 43.6 billion. Whether the record will be broken this year will become clear by the end of the year.

As evident, the growth of the gambling industry in the USA is not much impacted even by the pandemic. So, playing at a casino may be one of the most beneficial pastimes at present.

Summing Up

The US gambling industry is not just a promising field of income for the US state budget but in fact one of the most prosperous sources. It means that by gambling at the casinos of the country — both online and brick and mortar — each gambler literally contributes to the wealth of the country.

Be sure to play legally and never break the law by choosing the unregulated casinos that would let you face nothing else but scam.

LEAVE A REPLY

Please enter your comment!
Please enter your name here