The year isn’t even over and the combined revenue for online casino wagering through the first 10 months has already surpassed the $4.8 billion in revenue generated in 2022.
Mobile Casino Betting Booming
Online sports betting has been adopted quickly throughout the United States, but its more lucrative cousin, iGaming, has not been accepted nearly as readily. Only six states -Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia- offer online casino gambling.
Customers don’t have to leave the comfort of their own homes to bet virtual slots, blackjack, or any number of table games, and that convenience has sparked a gaming revolution. In October, the combined gaming revenue derived solely from online casino gambling was $542.7 million. It was the third-largest revenue-producing month and was nearly 18% higher than last October’s revenue of $453.1 million.
All told, the combined state taxes generated in October was a whopping $106.8 million, which brings the 2023 total to just shy of $1 billion. Rhode Island is scheduled to launch online casino gaming in March 2024 while legislation is being debated in several other states.
Garden State Leads the Way
New Jersey led the pack of six with its best month ever, reporting $166.8 million in adjusted gross revenue, while Michigan checked in with $160 million, the second consecutive month in which it broke the $160 million barrier. Pennsylvania also recorded an impressive October with $154.8 million in operator winnings, the first time it has eclipsed $150 million in back-to-back months.
The white-hot October in New Jersey was paced by the Golden Nugget, with a record-high revenue of $49.4 million through its own online platform, as well as the three skins with which it is associated; BetRivers, Betway, and FanDuel. The historic high bested September’s mark by nearly 10% and was tops yet again in the Garden State.
A $46 million revenue month was generated by Resorts, which pushed it over the $400 million mark this year. Hard Rock, Ocean Resort, and Tropicana also set personal monthly records. The Borgata and Caesars are the only two online platforms showing year-over-year declines in revenue.
General Concerns
Many state legislators are skeptical of welcoming Internet casino gambling into their markets because they believe it may threaten the brick-and-mortar establishments currently operating, or are concerned it could cause excessive gambling problems for the masses.
However, in the state that has benefited the most from iGaming, New Jersey, the director of the New Jersey Division of Gaming Enforcement, David Rebuck, said, “The volume of wagering, the interest from people, the excitement surrounding it as an entertainment option shows the power and reach of the internet. We were able to do it in a responsible, professional way that avoided embarrassment and scandal.”
Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, which studies the Atlantic City gambling industry, noted that online casino gambling has bolstered, not hindered, the retail casino locations.
Richard Schwartz, CEO of Rush Street Interactive, also pointed out that mobile casino betting complements the brick-and-mortar gambling palaces. “New Jersey proved it,” said Schwartz, whose company operates the BetRivers and PlaySugarHouse platforms. “Casino revenue after the pandemic has stabilized, and online revenue is setting new records.”
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