Casino Industry Rebounds After Horrible Spring

Many industries were hit hard by the global pandemic, most of them active in sectors like hospitality, travel, and entertainment. Airlines can’t stop counting their losses, hotel chains and restaurants report that the number of their patrons decreased by double digits, and movie theaters – and studios – have also felt the effects of the pandemic the hard way.

The casino industry is another sector that felt the full effect of lockdowns. In the second quarter of 2020, American casinos have seen their revenues drop by close to 80% across the board, topped by the dip in the sports betting sector’s loss of revenue caused by the suspension of pretty much every sporting event around the world.

Now, in turn, the industry seems to recover after its most horrible spring. The American Gaming Association’s Revenue Tracker shows that the industry is slowly returning to revenues as usual before the pandemic.

Recovery in Q3

According to the AGA, the American gambling industry’s Q3 revenues were just about 19% below the level seen in 2019, with a total of a little over $9 billion reported. Compared to the second quarter, this revenue shows growth of almost 300%. Over the first nine months of 2020, the total revenues of the gambling sector have decreased by around one-third but the signs point to a strong recovery before the end of the year. Depending on how things progress before the end of the year, the industry might recover important percentage points.

Slot machines and table games are still well below last year’s performances, though. Slots, the most lucrative game type of the industry, have seen their revenues dip by close to 20% in Q3, while table games, more than 30%. Sports betting recovered from its lows in the first half of the year, thanks in a large part to the crowded event calendar in late summer and fall – sports betting revenues have grown by 47% in the US, reaching $352 million in Q3, and by 27% year-on-year.

iGaming soars

The lockdown-proof part of the casino industry is iGaming – and it shows. To play at the JackpotCity online casino, you don’t have to fly, you don’t have to book a hotel room, you don’t have to take care of dining – you can simply visit it with a few clicks or taps, and start playing right away. The JackpotCity has a vast collection of games that matches the offer of even the biggest Las Vegas resorts, and all this without having to wear a mask.

The iGaming industry has seen its best year to date in 2020, due in part to the lockdowns. The gross gaming revenue of the iGaming sector has grown by a staggering 232.4% in the third quarter of 2020, to $435 million, while in the first nine months of the year, it has grown to a total of $1.07 billion, an impressive jump of more than 200% compared to 2019. The biggest growth in iGaming was reported by the state of Pennsylvania, where the revenues generated by this sector have soared by an amazing 1898%.

Part of the iGaming sector’s success is due to more territories now regulating the industry. West Virginia’s iGaming market opened up this July – it became the fifth new territory added to the market this year.

Venues opening up

According to the latest report published by the AGA, venues across the US are continuing to open for business. The vast majority of casinos have reopened in the second quarter of the year, and by the end of September, so did many others – at the end of the third quarter, nine out of ten casinos across the US were open, including 439 commercial properties.