By Damian Martinez, journalist at G&M News.
The commercial gaming revenue of the United States (U.S.) reached an annual record of USD 66.5 billion in 2023, according to the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker. The total surpasses 2022’s previous high of USD 60.5 billion by 10%, marking the industry’s third-straight record revenue year.
The year was punctuated by an all-time high quarterly revenue of USD 17.4 billion in Q4 2023, anchored by USD 6.2 billion in revenue in December 2023, the highest grossing month in industry history. The commercial gaming industry continues to evolve, with online gaming making up nearly one-quarter (24.7%) of nationwide commercial gaming revenue in 2023, a new annual high.
From the traditional casino experience to online options, American adults’ demand for gaming is at an all-time high. Sustaining this momentum will take unified industry efforts around combating pernicious illegal operators and growing responsible gambling efforts, in tandem with the growth of the legal market.
Brick-and-mortar casino slots and table games grossed a record USD 49.4 billion dollars in 2023, up 3.3 % over 2022. On a state level, 19 out of 27 traditional gaming markets saw record annual revenue. Meanwhile, sports betting achieved new records for handle (USD 119.8 billion) and sportsbook revenue (USD 10.9 billion), up 27.8% and 44.5%, respectively. This growth was largely fueled by continued maturation across most existing markets as well as several new markets, particularly in Massachusetts and Ohio. Also, 2023 online casino revenue grew 22.9% year-over-year to USD 6.2 billion in the six states with full-scale legal iGaming. But what was the 2023 balance of each of the major U.S. casino operators?
MGM RESORTS INTERNATIONAL
This renowned brand reported consolidated net revenues of USD 16.2 billion in 2023 compared to USD 13.1 billion in the prior year, an increase of 23%, due primarily to an augmentation in revenue at MGM China and an advancement in non-gaming revenues at Las Vegas Strip Resorts, partially offset by a decrease in casino revenue at their regional operations.
The period includes a full year of the operating results of The Cosmopolitan, subsequent to its acquisition in May 2022, and the results of Gold Strike Tunica until its disposition in February 2023, and excludes the results of The Mirage due to its disposition in December 2022.
The company’s operating income was USD 1.9 billion compared to USD 1.4 billion in the prior year, due to the upsurge in net revenues, a USD 2.5 billion reduction in noncash amortization expense relating to the MGM Grand Paradise gaming sub concession, and a USD 399 million gain on the disposition of Gold Strike Tunica in 2023.
WYNN RESORTS
For the year ended December 31st, 2023, Wynn Resorts’ operating revenues were USD 6.53 billion, an increase of USD 2.78 billion from USD 3.76 billion for the year ended December 31st, 2022. Operating revenues for the year increased USD 1.48 billion (Wynn Palace), USD 902.3 million (Wynn Macau), USD 348.5 million (Las Vegas operations), USD 34.7 million (Encore Boston Harbor), and USD 13 million (Wynn Interactive), from the year ended December 31st, 2022.
Net income attributable to Wynn Resorts was USD 730.0 million, or USD 6.32 per diluted share for 2023 compared to net loss attributable to the company of USD 423.9 million, or USD 3.73 per diluted share for the year ended December 31st, 2022. The rise in net income attributable to Wynn Resorts was primarily the result of growth in operating revenues from their Macau and their Las Vegas operations, as well as an income tax benefit related to the release of valuation allowance on certain deferred tax assets, because of achieving sustained profitability in the United States.
CAESARS ENTERTAINMENT
This big operator reported operating results for the full year ended December 31st, 2023. The company had net revenues of USD 11.5 billion versus USD 10.8 billion for the comparable prior-year period. Also, reported a GAAP net income of USD 786 million compared to a net loss of USD 899 million for the 2022 period. Meanwhile, the same-store adjusted EBITDA of Caesars Entertainment was USD 3.9 billion versus USD 3.2 billion for the 2022 period.
Results were driven by a 28% year-over-year increase in Caesars Digital net revenue that generated a 10% adjusted EBITDA margin in the last quarter of 2023. Full year results benefited from a 78% increase in Caesars Digital net revenues to approximately USD 1 billion, and an over USD 700 million improvement in this segment’s adjusted EBITDA.
LAS VEGAS SANDS
The 2023 operating income of this company was USD 2.31 billion, compared to an operating loss of USD 792 million in 2022. Net income from continuing operations was USD 1.43 billion, or USD 1.62 per diluted share, in 2023. This numbers can be compared to a net loss of USD 1.54 billion, or USD 1.40 per diluted share, in 2022.
For the last quarter of 2023, the company’s net revenue was USD 2.92 billion, an increase of 161% from the prior year quarter. Operating income was USD 710 million, compared to an operating loss of USD 166 million in the prior year quarter. Net income from continuing operations in the fourth quarter of 2023 was USD 469 million, compared to a net loss from continuing operations of USD 269 million in the fourth quarter of 2022.
In 2023, 12 of the top 20 commercial casino gaming markets in the U.S. reported revenue growth compared to the previous year, with the top market -the Las Vegas Strip– seeing the strongest year-over-year gains. New Jersey maintained its spot as the second-highest grossing market, while Chicago (third) flipped rankings with the Baltimore-Washington D.C. market (fourth) and Mississippi Gulf Coast (fifth) rounded out the top five.
The commercial gaming industry also contributed more to state and local governments’ coffers than ever in 2023. Throughout the year, commercial gaming operators paid an estimated USD 14.4 billion in direct gaming revenue taxes, an increase of 9.7% year-over-year. The industry also contributes billions of additional tax dollars to states each year in the form of income, sales, payroll, and various other corporate taxes.