February 2021 Commercial Gaming Revenue

With three fewer days, including two fewer weekend days, February commercial gaming revenue contracted more than six percent from January. Adjusting for the calendar and comparing average daily revenue, February gaming revenue actually outperformed the previous month by nearly four percent. Combined revenue from traditional casino gaming, sports betting and iGaming reached $3.19 billion, representing about 84 percent of February 2020 gaming revenue—the last fully operational pre-pandemic month. With 2020 a being leap year, last February’s numbers also benefited from an extra weekend day.

The slide in gaming revenue coincided with a one percent drop in consumer spending, the biggest driver of economic activity in the U.S, according to the U.S. Department of Commerce. This drop is expected to be temporary as data on restaurant visits, hotel bookings and airline travel indicate a steady pickup in spending in recent weeks.

Of the commercial gaming states that were operational in February 2021[1], six—Colorado, Michigan, New Hampshire, New Jersey, Oregon and South Dakota—saw year-over-year growth, with gains once more being fueled predominantly by sports betting and iGaming. Helped by the easing of some pandemic restrictions, gaming revenue improved over January in nine states—Illinois, Maine, Massachusetts, Michigan, Nevada, New Mexico, Ohio, Rhode Island and Virginia—with the Virginia market having only launched on January 21.

[1] The District of Columbia, Montana, Tennessee and Virginia did not have commercial gaming in February 2020.

In February, gaming revenue from casino slot and table games reached $2.74 billion, a 24 percent contraction year-over-year but down less than three percent compared to January. South Dakota was the only state where traditional gaming outperformed pre-pandemic levels, up more than 13 percent year-over-year. The state has seen revenue grow year-over-year in every full operating month since Deadwood casinos reopened in May 2020.

Strong revenue growth by sports betting and iGaming again helped stabilize overall gaming revenue. In the first full month with internet gaming in Michigan, nationwide iGaming revenue jumped 256 percent from last February to reach a new monthly record of $255.5 million. Sports betting revenue again doubled (128%) year-over-year to $196.1 million.

Combined revenue from sports betting and iGaming accounted for more than 14 percent of all U.S. commercial gaming revenue in February, down slightly from 17 percent in January and 16 percent in December, but well above pre-pandemic levels.

With the end of the NFL season, February sports betting handle slumped somewhat over January, thus breaking a six-month trend of consecutive monthly records. At least $3.49 billion was wagered with legal sportsbooks across the country, up 102 percent year-over-year and down 20 percent from January’s $4.36 billion record.