US gaming boom sees revenues reach record highs

by Ethan Anderson Last Updated
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American commercial gaming revenue soared to an all-time high in the second quarter of 2021, as pent up demand has been attributed to the spike in dollars.

Inside Asian Gaming reports that commercial gaming revenue across the United States soared teo US$13.6 billion in the three months to 30 June 2021, smashing the previous quarterly record by more than 22 per cent.

According to information from the American Gaming Association, the previous record of US$11.1 billion had been set in the third quarter of 2019, before being matched in the first quarter of 2021.

However, quarter 2 smashed past that mark to take the US cumulative total through the first six months of 2021 to US$24.8 billion, already closing in on 2020’s full year revenue mark of US$30 million and on track to overtake the US$43.6 billion reported in 2019 as the highest grossing year ever for commercial gaming revenue.

Asia should be encouraged by US revenue figures

The incredibly strong and record results should provide some encouragement for operations in Asia, who continue to face headwinds from the COVID-19 crisis, that better days are ahead.

“These first half results should provide some encouragement for operators in Asia, who continue to face headwinds from the COVID-19 crisis, that better days are ahead.

“These first half results are truly remarkable,” said AGA President and CEO Bill Miller.

“It is even more impressive when you consider commercial gaming revenue was at its lowest point ever just a year ago.

“This is a testament to our resilience and commitment to providing customers safe environments and world-class entertainment experiences.”

The AGA said that 22 out of 25 commercial casino states saw quarterly gaming revenue increases in the second quarter of 2021 compared to the second quarter of 2019, while 19 of 25 outperformed their first half of 2019.

Brick-and-mortar casino revenue was up almost 10 per cent from its previous high in the third quarter of 2019 to US$11.8 billion, due to easing capacity and amenity restrictions, coupled with continued consumer demand.

The AGA noted that, while three quarters of commercial casinos began quarter two capped at 50 per cent capacity or less, nearly every commercial casino had returned to full capacity by the end of June.

“The past 18 months have proven that this industry can persevere through hard times while remaining dedicated to our customers and communities,” Miller said.

“COVID-19 is not yet in the rearview mirror, but I’m confident the record first half of 2021 has laid a strong foundation for the industry’s full recovery.”

Macau sees spike in revenues

July saw a boost to the coffers of Macau’s casinos, with a 29 per cent month-on-month increase, as gross gaming revenue rose to about US$1.06 billion in July.

Judged year-on-year, this figure was a massive 528.1 per cent increase compared to last July, the Gaming Inspection and Coordination Bureau said.

GGR in June had been impacted by tighter countermeasures to prevent the spread of coronavirus in Macau, coinciding with new cases in neighbouring Guangdong province, the largest single feeder market currently for Macau’s tourists.

The upped restrictions led to a decline in June in inbound travel to Macau from mainland China.

The measures were gradually eased between the second half of June and early July.

Travel restrictions between Macau and mainland China have increased in late July due to fresh COVID-19 infections on the mainland.

With effect from the stroke of midnight on July 31, people intending to enter Macau on a direct flight from mainland China must hold a nucleic acid test certificate issued within 48 hours proving they are negative for COVID-19 infection.

For the first seven months of 2021 combined, Macau has recorded $7.18 billion in gross gaming revenue, a 63.9 per cent increase over the same period in 2020.

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