The American Gaming Association’s latest revenue tracker of the first quarter of 2022 showed that online sportsbook and gaming operators experienced record revenues.
Sports betting and online casino set “all-time quarterly records on the back of healthy growth in existing markets and new state launches, with New York being the most notable,” said the AGA.
Online betting and casino records
Sports wagering handle more than doubled in Q1, rising 102.3% to $26.34bn on 2021’s total of $13bn, while Q1 2022 revenues grew 64.6% to reach a record $1.58bn, just beating the previous record of $1.55bn set in Q4 2021.
The figures reflected the growth in consumer demand and the addition of six new legal markets, with New York’s regulation of mobile betting in January playing a major role in the growth.
However despite strong handle and revenue growth, online betting and gambling stocks have been suffering in the markets, with investors getting impatient about ongoing losses and uncertain paths to profitability.
New York state quickly established itself as America’s leading sports betting market following regulation of online sports betting there. Its quarterly revenues reached $320.9m and handle was $4.87bn during the quarter – more than states like Michigan and Virginia generated in all of 2021.
In total, sports betting and icasino generated $2.79bn of revenues during the first quarter, which represented 19.5% of all US gambling revenues and was up from 18.4% in Q4 and 15.7% in Q1 2021. Six sports betting markets and one icasino market launched in the past 12 months.
The AGA added: “Importantly, fears that the Empire State would cannibalize more mature online betting markets in neighboring jurisdictions did not come to fruition as both New Jersey and Pennsylvania saw wagering activity expand year-over-year by 34.9% and 25% respectively.”
iCasino record
Online casino also extended its growth in the first quarter of the year. Its revenues were up 53.9% to a record $1.21bn with only the state of Connecticut launching icasino in the past year.
The other five regulated igaming states, including Michigan, outperformed Q1 2021 revenues by 84%.
Commercial casinos post best quarter on record
Nationwide revenue from traditional casino games, sports betting and online gambling in the first quarter of 2022 reached $14.3bn, almost matching the previous record set in the fourth quarter of 2021.
The AGA said the Q1 figures were down less than 1% on Q4 and the first quarter of 2022 was the industry’s best start to a year on record. Quarterly gaming revenues increased 29% year-over-year and 34% compared to Q1 2019 despite a calendar that had 26 weekend days, the same as in 2021 and 2019.
The AGA said consumer spending on gaming remained strong despite inflationary concerns and a slowing overall economy and grew across all verticals: from traditional land-based gambling products such as slots and table games to all-time quarterly highs for online sports betting and gaming.
March was the best month for the commercial gaming industry, which saw revenues rise 18.5% to $5.31bn that month.
