The gaming industry began 2020 with optimism and positive momentum, coming off its best year ever in 2019. But when the COVID-19 pandemic brought on unique and unforeseen challenges for nearly every industry around the world, gaming was devastated. We closed our doors to support public health and focused our attention on supporting our employees and communities. The American Gaming Association’s State of the States 2021 report released this week shows the significant toll the pandemic took on gaming in 2020 – and it also highlights silver linings for the industry.
Traditional Gaming Sector Feels the Sting of COVID-19
For the first two months of 2020, U.S. commercial gaming revenue was up 11.4 percent compared to the same period in 2019. However, when the pandemic struck, commercial casinos closed across the country, resulting in more than 45,600 lost casino operating days for the industry – approximately 27 percent of the year.
Casino closures and mandatory capacity and amenity restrictions dealt a blow to traditional commercial gaming revenue, which fell to just under $30 billion in 2020, its lowest total since 2003. All 25 states with physical commercial casino gaming reported lower revenue than in 2019.
Pandemic-related closures also caused a reshuffling of the top U.S. gaming markets. The Baltimore-Washington, D.C. market became the third-largest commercial gaming market in the country – surpassing Chicagoland and trailing only the Las Vegas Strip and Atlantic City. The Mississippi Gulf Coast, St. Louis and Shreveport/Bossier City markets all jumped several spots in the top 20 rankings as well.
New Gaming Verticals Soar Amid Lifestyle Changes
While traditional casino gaming was hit hard by COVID-driven casino shutdowns and steep declines in business and leisure travel, emerging gaming options like sports betting and iGaming thrived.
Despite the pandemic, Americans didn’t lose their appetite for betting on sports, legally wagering $21.5 billion last year – up $13 billion from 2019. The phenomenal growth is due in part to five new markets operationalizing sport betting: Illinois, Michigan, Montana, Tennessee and Washington, D.C. By the end of the year, 19 states and the District of Columbia offered legal sports wagering, reflecting the demand amongst Americans for access to safe, legal sports betting markets.
Voter support for gaming remained strong last year. In 2020, voters and legislatures legalized sports betting in five states and authorized commercial casino properties in two new states. I’m optimistic these numbers will continue to grow as more voters and states realize the benefits of regulated, tax-generating gaming markets.
Despite the Highs and Lows, Gaming is Well-Positioned for Success
As we look toward gaming’s future in a post-pandemic world, we are encouraged by the rapid uptick in casino attendance and gaming revenue in the first quarter of 2021. U.S. commercial gaming revenue topped $11 billion for this year’s first three months, tying the highest-grossing quarter ever for the industry. These numbers assure us that consumer interest in gaming never waned – and that Americans are returning to the safe, fun environments our industry has worked so hard to provide.
We should all be looking forward to an exciting summer for gaming.
