Commercial Casinos Build on Blockbuster 2021 Revenues

In 2022, U.S. commercial casinos¹ continued building on blockbuster 2021 revenue, with the highest-grossing February on record notching $4.4B.

Sustained growth in slot revenue at land-based casinos contributed to the run, particularly in established markets like Nevada where Las Vegas leads the pack and accounts for a quarter of U.S. revenue. Visitors to this city of lights initially leapt in March 2021, thereby galvanizing revenue. Numbers have inched up in 2022 and in February registered a +69.9% year-over-year (YoY) increase, albeit still below the pre-pandemic era (-17.9% YoY3²). This visitor shortfall has been offset by higher spending per visitor (in part due to higher prices), driving revenue growth of +48.9% YoY.

Data	MoM	YoY	YoY3*
U.S. Commercial Casinos Revenue	-1.3%	32.3%	23.6%
Las Vegas Commercial Casinos Revenue	2.3%	48.9%	6.7%
Las Vegas Visitors	5.7%	69.9%	-17.9%
Las Vegas Convention Visitors	43.8%	2285.9%	-41.4%
Macau Commercial Casinos Revenue	22.3%	6.1%	-69.4%
Source: Big Data Federation, Inc.

Notably, this trend was bolstered by leisure, not business travelers. Last year, half of Las Vegas visitors cited vacation or pleasure as the primary purpose of their trip, up from a third in 2019. Convention attendees, likely visiting for work, are recovering at a healthy rate (+2285.9% YoY) but are still a far cry from pre-pandemic levels (-41.4% YoY3).

Sports betting and internet gaming (“iGaming”) have also powered the commercial casino sector’s all-time high. Sports betting has expanded into multiple states since the federal ban lifted in 2018, and within the first two months of 2022 generated revenue equivalent to all of 2019. Interest in iGaming accelerated during the pandemic due to limited access to outside entertainment activities and now accounts for 15% of commercial gaming revenues. This juggernaut shows no sign of slowing as companies vie to meet the demands of a tech-savvy audience.

As the U.S. population continues to adjust to a post-COVID norm and the conference circuit kicks back into gear, opportunities exist for casino industry revenue to maintain its highs as corporate travel returns and sports betting proceeds to expand.

In contrast, Macau's casino revenue improvement remains constrained (-69.4% YoY3 in February) as travel restrictions stemming from a strict zero COVID-19 policy severely hampered in-person gambling. This persistent loss of revenue combined with Beijing’s tougher regulations raise unabating questions for U.S. gambling operators about maintaining a presence in a territory that has traditionally dwarfed Las Vegas. All eyes are on what is next for what was once the world’s gambling mecca.