Page 6 - Mississippi/Louisiana Gaming News - Spring, 2024

Commercial gaming industry sets revenue record
By David Grisham
MISSISSIPPI — The commercial gaming industry in the United States set a new revenue record for the third consecutive
year in 2023, according to data compiled
by the American Gaming Association (AGA).
As detailed in the recently released AGA Commercial Gaming Revenue Tracker, total revenue from land-based casino games, sports betting and iGaming reached $66.52 billion for the calendar year, a 10.0 percent increase over the previous record set in 2022.
With the inclusion of tribal gaming revenue, which will be reported by the National Indian Gaming later this year, the total annual gaming revenue for the United States in 2023 will likely approach $110 billion, said Bill Miller, AGA president and CEO, during a webinar marking the release of the report.
The numbers are good and people in general like what they see, he continued, “Nearly three quarters of Americans believe that our industry has a positive impact on the U.S. economy.”
Traditional brick and mortar gaming
saw growth, with slot revenue increasing
by 3.8% and table revenue increasing by 3.5%. The industry contributed a healthy $14.4 billion in taxes to state and local governments, something Miller emphasized. “Gaming’s success translates directly to
the success of the states, cities and towns in which we operate. We are proud to be in 47 U.S. 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.”
The record-breaking year for traditional gaming coincided with nearly pre-pandemic levels of casino visitation. According to AGA research, 41 percent of the adult population, or 102 million Americans, visited a casino for gambling or other reasons in the past year. This marks a significant increase from 34 percent in 2022 and is just shy of the 44 percent recorded in 2019.
As more Americans choose to patronize casinos, the Covid-era demographic shift towards younger visitors continued. Over the past four years, there has been a consistent decrease in the average age of casino patrons, with the average age dropping to 42 years old in 2023. The average age on the casino floor is now nearly eight years younger than it was in 2019.
The numbers in the AGA report also reveal
that sports betting has become a significant revenue stream for the gaming industry. In 2023, sports betting revenue in the U.S. reached $10.9 billion, representing 45% growth compared to the previous year. This growth can be attributed to the launch of sports betting in five new markets, said Miller, namely Massachusetts, Ohio, Kentucky, Maine, and Nebraska. Additionally, the national hold for sports betting increased to 9.1% in 2023, up from 8.1% in 2022.
provided by SuperTalk Mississippi Media, Mississippi Gaming Commissioner Jay McDaniel gave his support for bringing online sportsbooks to Mississippi, stating the added revenue from sportsbooks would benefit the state and its residents. “We would definitely see an increase in revenue just because it would reach all corners of the state,” McDaniel said. “I believe we would capture some from
a state like Alabama that doesn’t have it right now legally.”
Increased gaming revenue would be welcome news for Mississippi. Although most states experienced gaming revenue increases in 2023, Mississippi was among the states that saw a drop in traditional gaming revenue last year. David Forman, AGA VP, Research, said
that Indiana and Maryland had the steepest declines falling just under 3.5% each while Mississippi fell 3% and Iowa had a 1.2% decline, all of which were impacted by increased regional cross- border competition for players with the opening of new casinos in their regions.
The Mississippi Gulf Coast was a bright spot for the Magnolia State last year, however, bringing
in $1,589,982,383 in revenue. This placed the Gulf Coast at No. 5 among all gaming jurisdictions, according to the AGA. The four markets that finished ahead of the Gulf Coast in order were the Las Vegas Strip, Atlantic City, Chicagoland and Baltimore-Washington D.C. Memphis, which includes parts of Arkansas and Mississippi, was listed as 15th for 2023 with $888,600,000 in gaming revenue.
During the webinar, Miller also stressed the gaming industry’s commitment to responsible gambling and the fight against the illegal market, including skill games and offshore websites.
Shutting down or minimizing illegal markets is especially important to Mississippi. Republican Rep. Casey Eure of Saucier, the prime sponsor of the mobile sports wagering bill, said mobile sports betting would not only bring in $25 million a year in tax revenue,
but would also undercut the influence of
illegal offshore sports betting platforms in Mississippi, which reportedly leads the nation in illegal online sports-betting Google searches.
6MISSISSIPPI GAMING NEWS SPRING 2024
The popularity of sports betting has undoubtedly been fueled by its availability in more states, with 38 states and the District of Columbia now offering it. This expansion has attracted throngs of bettors, stated the AGA, as nearly half of all American adults participated in some form of gambling in 2023. Overall, sports betting has provided
a significant boost to the gaming industry’s revenue, contributing to the industry’s record- breaking performance.
Mississippi, which has legal sports betting at casino sportsbooks and kiosks, is now bordered by three states that have legalized mobile sports betting — Arkansas, Louisiana and Tennessee. The Magnolia State could soon join these three states by expanding sports betting to mobile phones.
On Feb. 1, the Mississippi House of Representatives passed House Bill 774, a bill that would allow residents 21 and older to place legal sports bets on mobile devices. As of press time, the legislation still needed approval by the Senate and Gov. Tate Reeves signature.
According to the AGA in an article brief