Revenue from commercial gaming in the US plunged 78.8 percent year-on-year to a total of $2.3 billion in the second quarter of the year, the American Gaming Association estimates.
Regardless of the effects of the COVID-19 pandemic, the US gaming industry saw sales decline in almost every vertical survey as compared with Q2 2019.
Using data from the group’s new business gaming revenue tracker, the quarter saw igaming become the only vertical to experience yoy rise, as well as marking the first full quarter that it created more revenue than post-PASPA sports betting. Online casino gaming in six states is only legal: Delaware, Pennsylvania, Nevada (only poker), New Jersey, Michigan (not live), and West Virginia.
Thanks to the shutdown of sporting play, sports betting suffered a sharp drop in GGR in the second quarter but is still up marginally, 4.1 percent, in the first half of 2020.
Bill Miller, AGA president and CEO commented: “COVID-19 has undoubtedly posed the most difficult economic challenge the gaming industry has ever faced.
“Yet, gaming’s record popularity prior to COVID-19, as well our resilience in the midst of such adversity, is evidence of the industry’s foundation for continued success as we emerge from the pandemic.”
Contrary to recent decreases in sales, however, when open to business , commercial casinos reported high customer demand in 2020, with sales closed through January and February until all 989 locations closed their doors, up 10.4 percent from 2019.
With the return of casino gaming in Q2, in spite of operating with reduced resources, game quality, and amenities, many states announced a year-over-year rise in average daily GGR. This covers South Dakota (+42.5 percent), Ohio (+19.3 percent) and Indiana (+7.4 percent).
Although April and May both witnessed year-over-year GGR declines north of 90 percent, June saw nearly 300 commercial casinos reopening during the month, resulting in revenue nearly four-fold higher than the combined previous two months.
Miller continued: “The gaming industry has been a leader in implementing rigorous, innovative protocols that have allowed the vast majority of our properties to reopen and stay open.
“With business returning to casino floors and sportsbooks seeing increased action, the gaming industry is steadily charting a responsible path to recovery that prioritises health and safety, supports the communities where we operate, and offers first-class entertainment.”