The US casino industry is booming in the wake of the COVID-19 Pandemic. As inflation erodes the economy and leisure spending, the gaming play could soon wear thin.
The AGA reported this week that US commercial casinos experienced their best May ever. May was the second-best all-time month for the domestic gaming industry.
The AGA keeps an eye on the gaming industry by monitoring revenue reports in 31 states where commercial casinos operate. 18 states saw year-over-year gains in GGR, according to the trade group.
From April to May, land-based casino GGR climbed 1.5%, and oddsmakers saw their win grow a little more than 5%. Internet casinos reported a 2.4% month-to-month decline.
Slot machines deliver more money to the house than any other vertical in the gaming industry. Almost half of the industry’s income was won by retail terminals in May.
The AGA says the US casino industry had its best three-month revenue streak ever in May.
In-person table games won almost $1 billion, and the sportsbooks took in $555 million of bets.
As new states join the liberalized gambling activity, sports betting continues to grow in importance. A 103% year-over-year income surge is what the $555 million hold represents. Tables had a revenue spike of 10.5% and i gaming platforms won more money than they did in May.
The surge in consumer prices in the last few months is expected to curb some of the gaming industry’s momentum. The Bureau of Labor Statistics reported this week that prices rose in June.
Economists are concerned about the odds of an imminent recession because of higher prices for everything from milk and eggs to gasoline and soap. MGM Resorts CEO Bill Hornbuckle, Las Vegas Sands CEO Rob Goldstein, and Wynn Resorts CEO Craig Billings all maintained optimism during an interview with CNBC.
Las Vegas and the US gaming industry could be slowed down by inflation. They are not currently seeing definitive signs of a looming recession.
Strip casino CEOs said they have not yet seen a downturn, but that is not the whole picture. The owner of the Downtown Las Vegas casinos told CNBC last month that every weekend has been worse than the previous weekend.
The American Gaming Association (AGA) reported that US commercial casinos experienced their best May ever in 2022. May also represented the domestic gaming industry’s second-best all-time month in history. Sequentially from April, land-based casino GGR climbed 1.5%, and oddsmakers saw their win grow a little more than 5%. Internet casinos, however, reported a 2.4% month-to-month pullback.