STATESIDE Gaming flourished beyond expectations. Compared to
2022, 12 of the top 20 commercial casino gaming markets saw increases. Of the top five, it is no coincidence that the Las Vegas Strip enjoyed its strongest year-over-year gains at 7.5 percent. I credit much of that to the smart relocating of
professional sports teams, new property openings and updates. Metro Las Vegas continues its evolution to appeal to a new generation. Happily, my home state of New Jersey maintained its second-place position, rounded out by Chicagoland, the Baltimore-Washington D.C. market and the Mississippi Gulf Coast. What spurred this growth? Miller claims a “cooling” of
inflation spikes, increased consumer spending and somewhat stable federal interest rates all played a part. Statistically, almost half of the adult population gambled in 2023 in one of 47 gaming jurisdictions. This influx of players contributed to record commercial gaming revenues of $66.5 billion- 10 percent more than in 2022. Later this year, tribal governments will report their earnings and the AGA estimates it could be more than $50 billion. Casinos and their suppliers sent a staggering $14 billion in taxes to state and local governments, excluding the billions remitted annually in income, sales, payroll and additional corporate taxes. These extraordinary totals exceed almost anything the
requirements within jurisdictions-tax “leakage” to neighboring states, a state’s budgetary needs and a general election. 2024 is the perfect storm of all three. As almost 40 states, and Washington D.C., currently
offer some form of sports betting, those without it are in the minority and missing the boat. They earn few tax revenue benefits as their residents, especially those living near their states’ borders, will travel elsewhere to play. Politicos would be smart to push for legalization to keep more of their own residents’ money. As the pandemic recedes in our memories, federal
stimulus to states has almost ended. Many states continue to confront unprecedented spending levels, based on those years. Where will their financial help come from going forward? The answer probably includes gaming as one part. State
lawmakers have always viewed casinos and coin-op amusements as great funding sources. Both industries have helped fix their shortfalls without consumers directly being affected. However, unlike in years past, gaming is at a different,
more positive crossroads. In addition to the growth of land-based gaming, the U.S. is approaching six years since the historic May 2018 Supreme Court ruling. It effectively eliminated the 1992 PASPA law outlawing sports betting in most states by awarding states self-determination. Even if suggested, reversing the trajectory would be almost impossible. The money is just too great and the tax/employment losses would cause havoc in annual budgets. The American Gaming Association’s (AGA) President and
CEO Bill Miller understands this new position. He recently released the annual State of the Industry report analysis of 2023.
10 MARCH 2024
experts could have predicted just a decade ago. While this scenario is wonderful, staying power is critical. Miller reported polling revealed a 90 percent
acceptance rate among the public, with 75 percent agreeing that gaming has favorably affected their lives and communities. More than 1.8 million jobs and an annual economic impact of $330 billion can be traced directly back to a nationwide patchwork of diverse gaming operations. Looking ahead, the only way to sustain this growth is
to attract younger consumers who will replenish the customer base as older generations disappear. Fortunately, that is already happening. According to Miller, the average age has dropped to 42, which is eight years younger than in prior surveys. Younger Americans are a key demographic group
obsessed with their sports teams and events. So, I’m not surprised that the $10.92 billion Sports Betting Gross Gaming Revenue (GGR) in 2023 is an impressive 44.5 percent increase over 2022. It crushes the “mere” 3.8 percent and 3.5 percent rise in slot and table games. As November looms closer, no matter who wins,
industry members and AGA officials will continue to foster a positive alliance with legislators in Washington. Because more federal officials launch their careers in their state legislatures before coming to Washington, they often better understand the nuances and needs of gaming. “We have worked hard to build a strong and enduring foundation,” says Miller. I hope he is right. Slow and steady always works out
better than spurts of extreme growth and then a dramatic slowdown and downturn. Remember the tortoise and the hare? Who ended up winning the race?
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