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COVID Reshuffles Commercial Gaming Landscape in 2020

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AGA’s Annual State of the States Report Highlights State, National Impacts

The COVID-19 pandemic had a significant impact on the gaming industry in 2020, causing a 31 percent drop in commercial gaming revenue and a significant shakeup in the top 20 casino markets. While the pandemic overwhelmed traditional gaming sectors, the industry experienced monumental growth in emerging verticals like sports betting and iGaming. All of last year’s shifts in the commercial gaming landscape at both the state and national levels are covered in detail in American Gaming Association’s (AGA) State of the States 2021: The AGA Survey of the Commercial Casino Industry.

Highlights from the report include:

  • 2020 marked the industry’s lowest total annual revenue since 2003, with consumer spending on commercial gaming falling to $29.98 billion, down 31 percent from 2019.
  • All 25 states with physical commercial casino gaming reported lower revenue than in 2019.
  • Americans legally wagered $21.5 billion on sports, compared to $13 billion in 2019. Revenue from legal sports betting operations increased 69 percent to $1.5 billion.
  • The Baltimore-Washington, D.C. gaming market is now the third largest in the country, surpassing Chicagoland and trailing only the Las Vegas Strip and Atlantic City. The Gulf Coast, St. Louis and Shreveport/Bossier City markets all jumped several spots in the top 20 rankings.

“The gaming industry faced enormous challenges in 2020 – and we also saw significant changes, as player demographics shifted and emerging verticals saw strong growth,” said AGA President and CEO Bill Miller. “From sharp revenue declines, to booming legal sports betting activity and overwhelming voter enthusiasm behind gaming, this year’s report reflects both the highs and lows of the past year.”

During the first two months of 2020, U.S. commercial gaming revenue was up 11.4 percent compared to the same time in 2019. However, due to mandated casino closures and capacity restrictions, revenue fell significantly for the remaining 10 months of the year, beginning in March when all U.S. casinos shuttered due to the COVID-19 pandemic.

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Collectively, America’s commercial casinos lost more than 45,600 business days due to pandemic-related closures last year, meaning they were closed for approximately 27 percent of the year on average.

By the end of the year, 19 states plus the District of Columbia had active legal sports betting markets. Despite land-based casino closures and the suspension of major sporting events in the spring, sports betting saw significant growth, with Americans legally wagering more than $21.5 billion on sports last year.

In a survey conducted in April 2020, AGA member company executives, including commercial and tribal operator and supplier CEOs and CFOs, estimated a revenue decline of slightly more than 40 percent in 2020 and a timetable for recovery of up to two years. Q1 2021’s commercial gaming revenue numbers tied for the highest-grossing quarterly total ever, suggesting a quicker recovery than anticipated.

“The first quarter of 2021 clearly shows that consumer interest in gaming never waned, despite the challenges of 2020,” said Miller. “This momentum is a direct result of our industry’s ability to provide safe environments for our employees and guests to return to and is a strong indicator that our recovery is on the horizon.”

 

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About the Report

AGA’s annual State of the States report details the commercial gaming industry’s financial performance, including analyses of each of the 29 states and the District of Columbia that had commercial gaming operations in 2020. The report, developed with VIXIO GamblingCompliance, also provides a breakdown of the legality of types of gaming and number of casinos by state, summarizes major gaming policy discussions and previews opportunities and challenges for the industry. The companion State of Play map provides the report findings in an easy-to-use, interactive tool.

Background

  • State of the States is a reference guide focusing on the commercial casino sector. Tribal casinos are subject to different reporting requirements and timelines and revenue figures for 2020 were not available at the time of this report’s publication
  • COVID-related restrictions on casino capacity and amenities vary on a state and local level. AGA’s COVID-19 casino tracker is tracking casino capacity restrictions on a state-by-state basis.
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Canada

Relax Gaming joins forces with PointsBet to strengthen footprint in Ontario

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Relax Gaming, the iGaming aggregator and supplier of unique content, has significantly enhanced its presence in the Ontario market through an agreement with leading Canadian operator, PointsBet.

This partnership reinforces Relax Gaming’s aim to become a standout provider across North America, having already gained early success in Ontario. Relax became one of the first suppliers to deliver content to the region’s players in March 2022, debuting with over 120 games across multiple operators.

PointsBet pride themselves as one of Canada’s leading operators offering unmatched speed, ease of use, and a comprehensive array of pre-game and in-play sports betting options. This is complemented by a top-tier online casino which will now be boosted with the integration of Relax’s portfolio of slots and live dealer options.

With its authentic Canadian approach, PointsBet prioritises technology that minimises external dependencies to maintain control over its platform and has a commitment to responsible gambling best practices, ensuring a safe and secure environment for all players.

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Martin Stålros, CEO at Relax Gaming, said: “Since we launched in Ontario we have enjoyed tremendous success, with our content hitting the sweet spot for the broad range of players in the Canadian province. This partnership with PointsBet will strengthen our presence in the market as the region’s leading operator integrates our rich content portfolio which will engage its player base.”

Scott Vanderwel, Chief Executive Officer at PointsBet, added: “Relax Gaming has established a strong reputation across North America and in Ontario in particular. The impressive range of content that will be integrated into our platform will increase engagement within our online platform and we are delighted to be able to provide more immersive experiences to our audiences.”

Established as one of the industry’s leading B2B suppliers, Relax Gaming was awarded GGA’s Product Launch of the Year in February 2023 for Dream Drop Jackpots. Money Train 3 names the 2023 CasinoBeats Game Developer Awards amongst its 6 Slot of the Year titles, while the brand also won the award for Skill Games Supplier at the 2023 EGR B2B Awards along with the Innovation in Mobile award at the 2023 SBC Awards.

Relax Gaming provides more than 4,000 online casino games, from its high-performing proprietary slots to a significant, varied library of content from hand-picked third-party studios via its partnership programmes.

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Canada

Jackpot Digital Receives Approval from the Saskatchewan Liquor and Gaming Authority

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Jackpot Digital, a leading manufacturer of electronic multiplayer dealerless poker tables, has announced that it has received approval from the Saskatchewan Liquor and Gaming Authority (SLGA) to act as a registered supplier of gaming supplies and services to regulated casinos in the Canadian province of Saskatchewan.

The approval follows the Company’s news release dated February 6, 2024, announcing the signing of a licensing agreement with the Saskatchewan Indian Gaming Authority (SIGA) to install the Company’s Jackpot Blitz dealerless poker ETGs into SIGA casinos.

SIGA operates seven casinos and Playnow.com in Saskatchewan. At the outset, SIGA proposes to install Jackpot Blitz machines at its Dakota Dunes and Gold Horse Casino properties, located in Saskatoon and Lloydminster, respectively.

Jackpot CEO Jake Kalpakian said: “We are excited to receive approval as a gaming equipment supplier in Saskatchewan. This represents the first major jurisdictional, non-tribal license received by Jackpot during our continuing expansion into the land-based casino market. We have many more license applications underway in the US and other Canadian provinces, which will dramatically impact our ability to accelerate the rollout of Jackpot Blitz across North America.”

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Calgary Sports and Entertainment Corporation

Play Alberta, CSEC Extend Partnership

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Teams under the Calgary Sports and Entertainment Corporation (CSEC) banner have expanded their long-term partnership with Play Alberta, the province’s premier iGaming destination. As part of the agreement, the Flames will feature AGLC’s responsible gambling program, GameSense, on their home helmets and a Play Alberta insignia displayed on their home jerseys. The Stampeders, Wranglers, and Roughnecks will integrate the Play Alberta logo onto their uniforms.

“There’s significant importance now to showcase meaningful responsible gambling efforts in the iGaming industry. I’m proud of our initiatives to provide GameSense with such a visible platform. GameSense promotes healthy gambling habits online and in person and including AGLC’s responsible gambling platform over the course of this partnership is a huge accomplishment,” Kandice Machado, Chief Executive Officer at AGLC.

The agreement makes Play Alberta the exclusive sports betting and online gaming partner of the Flames, Wranglers, Stampeders, and Roughnecks. Through the partnership, Play Alberta and CSEC will develop unique partnerships and in-arena giveaways during the season.

“Through GameSense, our partnership with Play Alberta equips our fans with the knowledge required if they wish to participate in gaming while they support their home team. We are both proud and excited to extend our relationship with Play Alberta that makes cheering for our teams that much more fun while also generating revenue to support the quality of life for Albertans,” said CSEC President and CEO Robert Hayes.

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Alberta is the first jurisdiction in North America to partner with professional sports franchises and integrate PlayAlberta.ca and social responsibility branding onto uniforms. It upholds AGLC’s commitment to responsible play, raising awareness of GameSense and Self-Exclusion, resources that give bettors the tools they need to make healthy gambling choices.

In addition, proceeds generated through the website go toward the province’s General Revenue Fund. In 2023–24, $235 million was generated for programs and services that Albertans rely on every day through Play Alberta, an increase of more than $42 million from the previous year.

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