Impact of Pandemic on U.S. Gaming Market | VIXIO

Impact of Pandemic on U.S. Gaming Market

With the U.S. gaming market now showing signs of a v-shaped recovery from the seismic impact of the pandemic, the latest American Gaming Association and VIXIO GamblingCompliance ‘State of the States’ annual report analyzes how the traditional casino industry survived the unprecedented challenges of 2020. Total annual revenue from commercial gaming and sports betting operations fell 31.3 percent to slightly below $30bn, with all states reporting lower revenue than the prior year due to closures caused by COVID-19 but performance varying dramatically state-to-state. 

Overall, U.S. commercial casinos lost approximately 27 percent of potential operating days in 2020 due to state shutdown orders, with revenue trends in most states closely aligning with the severity of COVID-19 restrictions.

There were also several major bright-spots for the U.S. gaming industry during 2020, despite the pandemic.

The emerging internet gaming and sports betting segments saw significant revenue increases versus the prior year, the latter in spite of mass shutdown of sporting events in the spring. Meanwhile, the year saw a series of regulatory breakthroughs in the adoption of new payments methods in casinos, reflecting a longer-term policy impact of the pandemic.

For each of the 30 jurisdictions with commercial casino gaming or legal sports betting, the ‘State of the States’ report analyzes gaming and sports-betting revenue and direct gaming taxes generated by commercial casinos, internet gaming platforms and online and retail sportsbooks for the calendar year 2020.

The report also provides a breakdown of the legality of types of gaming and the number of casinos by state, summarizes major gaming policy discussions that occurred during 2020, and outlines how the industry and gaming regulators responded to the unprecedented circumstances of the pandemic.

Among key 2020 events covered by the report:

  •       How experienced gaming regulators readied their casinos to reopen after the initial outbreak of COVID-19
  •       Voters in six states approved new laws for sports betting or casino expansion through November referendums
  •       Revenue from internet gaming increased by nearly 200 percent over 2019, in part due to COVID-19 shutdowns
  •       U.S. sports-betting operators expanded their alliances with major sports leagues, teams and media companies

In addition to AGA, VIXIO GamblingCompliance produces regular research reports on behalf of other major industry trade associations, such as the European Casino Association and Association of Gaming Equipment Manufacturers. 

To access a copy of the ‘State of the States’ report, please click here

Our core VIXIO GamblingCompliance subscription services offer guides to U.S. state and federal laws and regulations for commercial and tribal gaming, sports betting, lotteries and internet gaming. Our trackers and daily analysis chronicle key regulatory events, policy trends, partnership agreements and enforcement activities for every state, while our Data Hub aggregates monthly revenue statistics reported by U.S. states for traditional casino games, online gaming and sports wagering, saving subscribers hours of research work.

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