US online gaming revenue up 254% in Q2 as Covid-19 hits land-based sector
Q2 brick-and-mortar GGR down 78.8% as lockdown closures wreak havoc on US gambling hubs Las Vegas and Atlantic City
US online gambling gross gambling revenue (GGR) went up a record 253.8% year-on-year during the second quarter of 2020, shooting up to $402.7m (£308.1m), according to the latest statistics released by the American Gaming Association (AGA).
US sports betting GGR during Q2 was also severely impacted by Covid-19, falling by 46.3% to $64.2m (£49.1m), as many US sports including the NBA, NHL, NFL and MLB were suspended and retail books were closed.
However, the resumption of certain sports across the US over the last two months has led to a 10.4% year-on-year increase in sports betting GGR during H1, with revenue hitting $324.9m (£248.5m).
The explosion in online gambling in the US during the Covid-19 pandemic is mirrored at a H1 2020 level, with online gambling GGR rocketing 189.7% YoY to $634.9m (£485.7m).
Total US gambling industry revenue, including land-based GGR, dropped by 78.8% YoY during Q2 to $2.3bn, with double digit declines across the entirety of the retail casino and sports betting sectors during the quarter.
Gross gambling revenue from slots-based games fell by 82% to $1.3bn in Q2, while US table gaming GGR dropped by 86% YoY to $286.9m following the closure of the land-based sector due to the pandemic.
Total GGR fell by 45.6% YoY during H1 to $11.7bn, with similar declines reported in slots GGR, which fell 78% to $7.36bn and table game GGR which fell by 78.5% to $2.13bn in the same period.
The US land-based casino sector has been rocked by the pandemic, with many of America’s leading gambling hubs, including Las Vegas and Atlantic City, shuttering their doors.
Double-digit declines in gross gambling revenue were reported in all US states with commercial gambling during Q2. GGR across six states, Illinois, Maine, Massachussetts, Michigan, New Mexico and New York, was completely wiped out during the quarter.
AGA president and CEO Bill Miller said he was optimistic for the future despite the significant impact of Covid-19 on the US gambling industry over the first half of 2020.
“Covid-19 has undoubtedly posed the most difficult economic challenge the gaming industry has ever faced,” said Miller.
“Yet, gaming’s record popularity prior to Covid-19, as well as our resilience in the midst of such adversity, is evidence of the industry’s foundation for continued success as we emerge from the pandemic,” he added.