Bettors defied the odds of Covid-19 lockdown and global economic decline to post record wins in 2021 and 2022. What lies ahead for Las Vegas casinos in 2023? Are we expecting the massive winning streak to continue or not?
How Vegas Broken the All-Time Record for Gaming Revenue 2022
The Q4 of 2022 saw massive quarterly returns in the American commercial gaming industry. Bill Miller, AGA President and CEO, said, “A quarterly revenue of about $15.9 billion was more than what industry leaders had expected in 2022.”.
According to statistics, NJ casinos revenue touched a joint record of $5.1bn in 2022. Despite significant drops in betting receipts, land-based casinos in New Jersey saw a 9.0% increase over 2021 values to hit the $2.79bn mark. Table games and slot revenues posted 9.1 and 9.0%, respectively, amounting to $741.7m and $2.04bn.
Other States that reported gaming revenue year-on-year increase include:
Baltimore-Washington D.C. ($2.2 billion, up 8.7%); Atlantic City ($2.8 billion, up 8.5%); and the Chicago region, which includes parts of Indiana and Illinois ($2.1 billion, up 6.1%), are further examples of recent economic growth.
AGA President, Bill Miller, attributed the surge in casino gaming revenues to a record-breaking increase in patronage by U.S. adults, favorable legislation in some states, and advances in retail gaming.
Las Vegas Casino Market Projections – 2023
According to Forbes, the Las Vegas casino gaming industry has generated at least $1bn monthly consistently for 22 months. It is expected that the trend will continue in 2023. The city hosted 100,000 guests for an International Builders Show in January 2023. There are indications that as gaming trends continue into the year 2023, tourism and gambling businesses are set to see more patronage.
What is the Las Vegas City Council Doing to Increase Revenue?
The city will host two important events in the last quarter of 2023, which will also boost the patronage of the casinos. In November, about 100,000 visitors are expected to attend the Formula 1 Las Vegas Grand Prix. An estimate of $1bn will be injected into the economy by the visitors.
Barely eight weeks later, Allegiant Stadium will host the Super Bowl LVIII. The event is projected to have an economic impact of over $500m. About 238,000 passengers flew into Las Vegas last November, which is lower compared to the 305,000 international visits recorded in November 2019. This is justified as the easing lockdown across countries impacted travel. However, as the economic recovery progresses, hopes are high that more international visitors will come to Las Vegas and touch some legendary casinos.
The Strip plans to open two new casino locations in the last quarter of 2023. The first destination is the $3.2bn Fontainebleau Las Vegas, which will have 3,700 rooms and lie adjacent to the Las Vegas Convention Center. Second is the $2.1bn MSG Sphere located at The Venetian. Imagine this edifice with 17,500 seats, 580,000 square feet of exosphere programmable lighting plus and featuring the world-record LED screen in terms of size and resolution.
A Look at Vegas Casino Revenue for the Next Decade
In the future ten years, attention will shift more toward virtual retail gaming. The land-based casinos will keep up their pace with the latest technology to sustain and improve their patronage. As more US states legalize gambling, new markets will open, and more tech-inclined retail businesses will emerge. We expect that the industry will outshine the beer industry by 2033.
Las Vegas casinos are expected to generate $15.9 billion in revenue by 2023 due to increased patronage from US adults, favorable legislation in some states, and advances in retail gaming. Two new casino locations are set to be opened during the last quarter of 2023, which will also contribute to the overall revenue. In the next decade, virtual retail gaming is expected to become popular, and more US states will legalize gambling to provide a new market for tech-inclined retail gaming businesses.