The American Gaming Association (AGA) posted strong third-quarter growth for casinos with the commercial gaming revenue hitting $9.04 billion.
AGA Tracks Recovering Gaming Revenue in Q3
Commercial casinos in the United States posted a strong Q3, having emerged from the crisis in the three-month period with $9.04 billion in total gaming revenue. The number represents an estimated 81% of the pre-crisis level when compared to results from Q3 2019, the American Gaming Association (AGA) reported, basing the data on its own Commercial Gaming Revenue Tracker.
The quarter-over-quarter results still show a 294% increase from Q2, when the pandemic had paralyzed all of America’s 1000-or-so commercial and tribal casinos, from March through June. Overall, gaming revenue is down 36.5% year-over-year in the first nine months of 2020, with no chance for the industry to close the gap in full in the remaining three months that have not been reported on.
Soaring infection cases have put a full recovery in doubt, and the industry will likely experience another disruption. News that vaccination is on the way, though, has buoyed up casino stock.
Casinos Return with Continuous Reopenings
Commenting on developments, AGA President and CEO Bill Miller argued that the industry has been focused on prioritizing the health and well-being of consumers and employees over financial results.
“While these quarterly results are promising, the reality is a full recovery is dependent on continued public health measures to control prevalence rates.”-AGA President and CEO Bill Miller
Miller reminded that swift government action is needed with the chief executive calling for financial relief, and adding that gaming companies and communities depend on government stimulus.
By the end of the third quarter, some 902 commercial and tribal casinos had reopened or a total of 90.8% of the entire casino base in the country. Most of the properties reopened in July when official lockdown measures were lifted in most places, with another 100 following between July and September.
Strong Recovery and Consumer Drive in Old and New Markets
While recovery has been slow, five casinos have managed to post even better numbers in the third quarter, beating year-over-year expectations, including:
- Arkansas (+0.3%)
- Mississippi (+2.8%)
- Ohio (+7.5%)
- Pennsylvania (+3.8%)
- South Dakota (+6.1%)
Other states to have posted strong gaming revenue growth include New Jersey and Maryland which have been able to balance between the pandemic and economic performance, AGA informs.
Gaming revenue has suffered, but on the flipside, casinos and sportsbooks have managed to attract a substantial chunk of interest in sports betting.
Pent-up demand and the return of major sports competitions allowed betting firms to cash in with newly-legalized markets, such as Washington D.C., Illinois, Colorado, and Michigan posting $5.95 billion in total bets in the third quarter and contributing $352.3 million in gaming revenue.
Another strong metric remains iGaming which has managed to generate $435million in the third quarter or a 232% increase from Q3 2019.