A thorough study of the AGA industry in the first year of the pandemic shows a significant decline in gaming revenue and incredible growth in emerging industries.
State of the AGA 2020
The pandemic had a significant impact on the gaming industry last year, with a decline at 31% in commercial gaming revenue and rocked the largest 20 markets . The crisis has had a big impact on the traditional gaming sector such as land-based casinos. However, emerging new markets such as iGaming and Sports Betting saw amazing growth. The American Gaming Association (AGA) conducted a thorough research of the commercial casino industry "State of the State 2020" and discussed the situation at national and local level.
According to the president and CEO of AGA Bill Miller , the gaming industry was faced with an unprecedented challenge in 2020. The demographics of players changed as new industries emerged and began to grow. The gaming industry has experienced a sharp decline and a boom in new legal sports betting. Voters across the country enthusiastically began legalizing sports betting and gambling. He said the report captures the highs and lows of 2020.
Last month, the AGA released another report showing the dangers of illegal gambling machines and showing how they are linked to criminal activities that put customers at risk.
Casinos have lost more than 45,600 Business Days in total
US gaming revenue increased by 11. 4% in first two months 2020 compared to the same period . Later, due to closures and restrictions that hit casinos, revenue dropped significantly over the next ten months of the year, starting in March, when all casinos were closed nationwide. Total casinos lost more than 45, 600 working days due to a pandemic or approximately 27% on average in 2020.
Last year, as the global pandemic hit the globe, the US gambling industry marked its lowest total annual gaming revenue since 2003 . Consumers spent on commercial games have fallen to $ 29 billion , which was 31% less than in 2019. All states with land-based casinos recorded lower revenues than in the previous year. However, customers legally bet on sports $ 21. 5 billion compared to 2019 when they only bet $
The Baltimore-Washington, DC gaming market is the third largest in the US after Atlantic City, Las Vegas Strip and Atlantic City.
By the end of 2020, 19 states had active sports betting
In a 2020 survey by AGA directors, including operators and suppliers CEOs and financial directors , the estimated decline in revenues was slightly greater than
% in 2020. They saw that the industry would have to recover for up to 2 years. However, in Q1 2021 gaming revenues turned out to be the highest - an increase in quarterly total in history, which shows that the recovery may come much faster than expected.
By the end of 2020, 19 states , including District of Columbia , launched sports betting. Although casinos have suffered from closures and restrictions due to the pandemic and many sporting events have been canceled, sports betting has found its timing to show up.
Miller said, “First quarter 2021 it clearly shows that consumer interest in games has never diminished despite the challenges of 2020. ”He said such a result could serve as optimistic confidence that recovery could come soon and consumers see the industry as a safe environment.