The latest revenue report produced by the AGA (American Gaming Association), released on Tuesday (13), showed that commercial games in the US generated US$ 72 billion in revenue in 2024. This represents an increase of 7.5% compared to 2023.
Last year’s total set a new all-time record, this time for the fourth year in a row. This is an impressive feat, especially given factors such as the Covid-19 pandemic and the economic downturns that followed.
According to the AGA, of the 38 states with commercial gaming, 28 set all-time individual records last year. In addition, the industry contributed $15.9 billion in state and local tax revenue.
That’s also a record and an 8.5% increase from the previous year. However, that total doesn’t include the federal tax paid by sports betting operators or other typical corporate taxes.
In fact, the numbers represent an increase compared to the last survey (-8.7% in the third quarter of 2024). However, the short-term outlook has its impact felt by the market.
For the first time, according to AGA, in the first quarter of the year, executives reported a more negative than positive current business situation. Of these, 36% were negative versus 18% positive. This is since the survey began in 2021.
“While executives are optimistic about capital expenditures, expectations regarding the pace of hiring and wage growth remain subdued,” the report noted.
“Employee pay and benefits were singled out, along with changes in tax or regulatory policies and data protection, as the top areas that will put additional pressure on profit margins over the next six to 12 months.”
US eyes future of gaming sector
However, when it came to long-term planning, the outlook became more optimistic among executives. More than 80% were neutral, compared with 14% positive and just 4% negative.
“Executive sentiment regarding future client activity reached its highest level since Q1 2022, with 29% of executives anticipating an increase,” AGA said.
“Insufficient customer demand is indicated as a limiting factor for operations by 22% of executives. This, in the third quarter of 2024. This change was indicated by only 11% of executives in the first quarter of 2025”, describes the research.
It is worth noting that the survey was conducted between March 25 and April 8. This means that the responses are directly related to market fluctuations related to the “Liberation Day” tariffs in early April. Several gaming companies saw their shares depreciate significantly before retreating.
Given this, most CEOs have downplayed the economic impacts so far during their first-quarter earnings calls.
“Like others, AGA member companies face a scenario in which consumer discretionary activities are subject to testing by tariffs on imported products and setbacks in the stock market,” the association said.
“However, even as executives’ views on the short term have worsened, their long-term outlook is more positive, reflecting the hope that the current uncertainty will be resolved as soon as possible.”
