By Damian Martinez, journalist at G&M News.
In the heart of the United States, where neon lights flicker and the sound of spinning slot machines fills the air, a remarkable transformation is underway. The land-based gaming industry, deeply rooted in North American culture, has experienced unprecedented growth over the past few years. From the glittering casinos of Las Vegas to the tribal gaming halls nestled in rural landscapes, this industry has become a powerful economic force, captivating millions of visitors and reshaping the entertainment landscape.
The country now boasts 27 commercial land-based casino markets, up from 25 in 2022. Sports betting markets have expanded to 30 (North Carolina is the most recent one), and seven states have embraced iGaming (Rhode Island is the latest). The map of opportunity is constantly evolving, with states like Arizona and Michigan joining the fray.
The American Gaming Association (AGA) unveiled its Commercial Gaming Revenue Tracker, providing a comprehensive snapshot of the industry’s financial health. The numbers are staggering, with total revenue from land-based casino games, sports betting, and iGaming reaching a colossal USD 66.52 billion for the calendar year 2023. This represents a 10% increase over the previous record set in 2022.
But the story doesn’t end there. When we factor in tribal gaming revenue (which will be reported by the National Indian Gaming Commission later this year), the total annual gaming revenue for the United States in 2023 is projected to approach a jaw-dropping USD 110 billion. The industry’s resilience in the face of mounting challenges is nothing short of remarkable.
The year 2023 witnessed a seismic shift in the land-based gaming industry across the United States. As the dust settles on a year of unprecedented challenges and remarkable achievements, let’s delve into the financial performance of key players.
Bally’s Corporation
The operator has completed a successful 2023, with healthy results across all their business segments. Revenue in the fourth quarter grew 6.1% year-over-year to USD 611.7 million reflecting continued growth in their Casinos and Resorts, International Interactive and North America Interactive segments. For the full year, revenue rose 8.6% versus 2022.
In 2023, Casinos and Resorts revenue expanded 11.1%. The company saw strong performance across much of the portfolio, as their properties exceeded the market Gross Gaming Revenue (GGR) for revenue performance in 7 of their 10 markets, demonstrating the underlying value of their properties and their operating strategies.
Gaming and Leisure Properties (GLPI)
The operator generated a record fourth quarter and full year 2023 results while again increasing their cash dividend as they delivered growth across all key financial metrics for both the quarter and full year. On an operating basis, fourth quarter total revenue rose 9.7% year over year to USD 369.0 million, while Adjusted Funds From Operations (AFFO) ascended 7.3% to USD 256.6 million.
In 2023 GLPI completed over USD 1.1 billion of transactions, including over USD 760.0 million of traditional real estate acquisitions and USD 337.5 million of loan funding commitments. In addition, the benefit of transactions completed in 2022 and their early 2023 acquisition of two Bally’s casinos in Rhode Island and Mississippi for USD 635 million contributed to their record 2023 operating results.
Full House Resorts
This company celebrated a new phase in 2023, opening two casinos: American Place in Waukegan, Illinois, and Chamonix in Cripple Creek, Colorado. For the full year, the firm’s revenue was USD 241.1 million, a 47.6% increase from USD 163.3 million in the prior year. These results showed the February 2023 opening of American Place, as well as USD 5.8 million of accelerated revenue under two of their sports wagering agreements with third-party operators that ceased operations during the third quarter of 2023.
Full House Resorts’ net loss in 2023 was USD 24.9 million, which included USD 15.7 million of preopening and development costs, primarily related to their Chamonix construction project, and significant depreciation and amortization charges related to the temporary American Place facility. For 2022, net loss was USD 14.8 million, reflecting USD 9.8 million of preopening and development costs. Adjusted EBITDA was USD 48.6 million in 2023, rising 51.1% from USD 32.1 million in the prior-year period.
Rush Street Interactive (RSI)
The company’s revenue for the full year was USD 691.2 million during 2023, an increase of 17%, compared to USD 592.2 million during 2022. Net loss was USD 60.1 million during 2023, compared to a net loss of USD 134.3 million during last year. A noteworthy fact is that the operator’s Latin American revenue increased over 50% in 2023.
Also, the company informed that their Monthly Active Users (MAU) in the United States and Canada were approximately 160,000, up 7% year over year. MAUs in Latin America (which includes Mexico) were approximately 204,000, up 33% year-over-year. On the other hand, Average Revenue per Monthly Active User (ARPMAU) in the United States and Canada was USD 345 during the fourth quarter of 2023, up 5% year-over-year. ARPMAU in Latin America was USD 42, up 28% year-over-year.
Century Casinos
Although it is not as prominent as the giants, this brand contributed to the industry’s growth. Their steady performance underscores the resilience of smaller operators in a competitive landscape. 2023 was a transitional year for the company as they completed two major acquisitions to expand their US portfolio to seven casinos.
The firm continues their large construction projects in Missouri, which remain on time and on budget to open in early April 2024 for the Cape Girardeau hotel and late 2024 for the Caruthersville casino and hotel. Century Casinos informed a net operating revenue of USD 550.2 million in 2023, an increase of 28%, and their earnings from operations were USD 64 million, a decrease of 5%.