In August 10, 2021, Forbes ran a story on the amount of revenue the gambling industry was expected to collect in 2021. In part, the headline said, ‘U.S. Gambling Revenue Likely to Break the $44 Billion Mark in 2021.”
With those words alone, it was evident that gambling is a huge industry in the United States. According to trusted reports, gambling revenue in the whole country crossed $13.6 billion in the months of April through June 2021.
According to AGA, never in the history of America has the gambling industry fetched such a huge amount in just three months. AGA said that in general, gambling shot 22% higher than what was collected the same period the previous year.
In 2019, revenue from states that allow gambling was at $11.1 billion. The amount was seen as the highest especially because by then, several states had issued strict measures to contain the spread of Covid-19.
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Gambling Is a Big Industry in the U.S
In 2019, when everything in the world almost stall, the gambling industry kept striving. To show its muscle amid the pandemic, revenue collection shot beyond the expectations of industry stakeholders.
For instance, in spite of the outbreak of the novel coronavirus, casinos in the United States managed to raise $43.6 billion. Industry experts now say that based on what the sector did when coronavirus was at the peak, things will be even better this year.
Some have started to project that by the end of 2021, there are chances for the gambling industry to generate over $44 billion. Meanwhile, a huge number of players in the US gamble at offshore casinos, as reported by USGamblingSites.com.
If indeed revenue from states where gambling is legal will hit $44 billion by the end of this year, that could be the highest amount in the history of gambling. Bill Miller, the Chief Executive Officer with the American Gaming Association, says he is optimistic.
“Things are not the same as they were in 2019. If back then, the industry collected $43.6 billion in spite of the pandemic, what of now when things have started to normalize?” Miller asked. The CEO added that with what has been achieved so far, the gaming industry is slowly regaining its glory.
Casinos See an Increase in Clients, Revenue
Statistics from the American Gaming Association (AGA) show that casinos in the country have been recording a steady rise in revenue collection. AGA reports that 22 out of 25 U.S states that allow gambling recorded an increase in the number of clients.
In particular, AGA says that all gambling facilities in the 22 states recorded a rise in revenue during the months of April, May, and June 2021. Compared to the same period in 2019, this year’s revenue is way more.
In addition, the gambling association says that of the 25 American states that allow gambling, 19 of them made more money in the months of January to June of 2021. This is when compared to the same period in 2019.
Of all the 25 states where gambling is legal, Nevada took the lead. The state brought $3.46 billion to the national kitty. Pennsylvania came in second with $1.21 billion while New Jersey came in third with $1.11 billion.
All these three states shared one thing – they all recorded an increase in revenue in 2021 compared to 2019. While Nevada recorded a revenue increase of 17% from 2019, Pennsylvania and New Jersey recorded, 44.6% and 35.5% increase respectively.
Nevada’s lead in revenue collection does not come as a surprise. The state has elaborate gambling laws. Investors in the gambling industry are serious. Some of those who have invested in the gambling sector have been in the business for many years.
The state’s gaming control board said that it collected a whopping $1.2 billion in revenue in just one month. According to the board, that was the fourth month in a row, the state collected over a billion per month from gambling.
Stretching Ahead
With the projection for year 2021 set, it is easy to forget what the future holds for the gambling industry. With new live and land-based casinos coming up each day, there is reason to believe that gambling is a big thing in the USA.
Elaborate legislation, the opening of many online casinos and the increase in the number of gamblers are things to watch. With these three things alone, it is evident that soon, gambling will be the largest industry in the U.S.
On other news, Global Industry Analysis (GIA), which is considered a premier market analysis company, praised the gaming industry. The company said that global gambling revenue is set to hit $876 billion in 2026.
The study that involved over 2000 executives revealed that the amount of money coming from gambling is already a lot. However, the research revealed that the amount is likely to increase steadily to reach $876 billion by 2026.
According to the study, despite the eruption of Covid-19, worldwide gambling industry was estimated at $711.4B in 2020. Having hit that target, now the executives say that the amount is likely to go up to $876B by 2026. The business executives said the recovery of the industry is subject to how the coronavirus behaves.
Global Statistics
According to Statista, worldwide, revenue from gambling (land-based, live, and online), was estimated at $265 billion in 2019. This amount was $10 billion more from the year before. As people expected another increase as it has been for the past years since 2011 something happened.
The Covid-19 was at the peak in 2020. As authorities in all parts of the world came up with measures to contain the virus, sectors of the economy almost collapsed. As a result, global revenue from gambling fell short by over $63 billion.
With the decrease in gambling revenue in 2020, industry stakeholders are crossing their fingers. Nonetheless, although 2021 is not yet over, the sector has since realized some recovery.
After accumulating revenue from the first 11 months of 2021, there is an increase of some $28 billion from 2020’s $202.54 billion. That makes 2021 higher than 2020 with a collection of $230.86 billion.
