A Significant Growth in the United States Online Gambling Market

The United States of America’s online gambling market received a valuation of $2.2 million in 2020, but recent projections of the industry’s compound annual growth rate could reach a 17% increase between 2021/26. 

When the global pandemic hit in March 2020, the gambling industry was impacted in a major way – both globally and in the U.S., resulting in the closure of multiple gambling industry markets. The industry was heavily affected between casinos, sporting events, and establishments that provided gambling operations such as bars, hotels, bingo rooms, and horse racing. 

The gambling industry’s counterattack to COVID-19 and its lockdowns came in the form of online gambling, where numerous operators transitioned from physical gaming into the digital world.

A high percentage of casino enthusiasts have adjusted and are now using online sites. Since gambling regulations in America have eased, the country’s online casino presence has moved in an upwards trend – producing more significant download numbers of casino games while boosting the overall revenue within the gambling market. 

Pennsylvania, one of the first states to introduce a legal online casino market, has been creating the best available online experience since 2019. As they already established before the pandemic’s arrival, handling the explosive rise in customers wasn’t as demanding for those new to the game. 

However, New Jersey’s state owns the title of America’s most significant online gambling market. With more than twelve licensed online casino websites and poker rooms, the market value exceeds $225 million each year. 

2019 figures released by the DGE (Division of Gaming Enforcement) showed impressive returns from the top-3 online casinos in New Jersey; Betfair/The Golden Nugget saw $13 million in revenue, Resorts AC took $6 million, and Borgata earned $5.5 million. 

Pennsylvania’s Rapid Growth in the Online Market 

Pennsylvania became the 4th state to legalize and completely regulate online gambling. America’s newly established regulations have allowed states such as NJ to introduce online casinos, sports wagering, online poker, and all markets of online gambling to their repertoire.

The AGA (American Gaming Association) showed Pennsylvania’s market revenue from their physical casinos in 2017 to be $326 million – the second largest return in America. With this in mind, it’s no surprise that Pennsylvania’s online market presence is expected to incline and provide additional revenue.

While Pennsylvania is the leading player amongst those states in the online gambling market, up-and-coming states like Michigan have made huge strides. 

Michigan Online Gambling

Online casinos and sports betting markets reported a massive revenue of $155 million in January 2022. The year has been a significantly positive month for MI, as the Gaming Control Board has continued providing positive results since Michigan Online Casinos went live in January 2021. 

Despite dropping 0.4% from December’s return, online casinos were responsible for $121 million of the $155 million total gross revenue. 

          Companies operating in Michigan provided the state with $19 million in taxes. MGM Grand, MotorCity Casino, and Greektown Casino out of Detroit paid $6 million in wagered taxes and fees linked to the multiple forms of gambling in January. 

“Momentum in Michigan for online sports betting and casino games continues to grow,” commented Matt Schoch, the lead analyst for PlayMichigan.com. 

“Spring is coming, which means a seasonal slowdown in sports betting. But the fall and winter have proven that Michiganders are increasingly comfortable with online gaming in its various forms.” Schoch continued.  

In January, the three casinos in Detroit produced $100 million in revenue from their table games, sports wagering, and slot machines. And we can only anticipate these figures to accelerate with the number of operators in the state rising to 14 – since additional companies received authorization in January 2022.

BetMGM Casino dominated the online casino market by a considerable margin in 2021. Data from the Michigan Gaming Control Board reported $375 million in revenue – finishing above their rival DraftKings Casino Michigan ($167 million), FanDuel Casino Michigan $166 million), BetRivers Casino Michigan ($67 million) and Golden Nugget casino ($45 million).    

 New Jersey Still Leads the Pack 

New Jersey is the epicentre of online gambling in the United States and is currently the No.1 market in terms of online casino revenue produced. Having owned a considerable head start on its fellow states, NJ has been spearheading online gambling since 2013. In contrast, alternative states have battled with legislation and laws to provide a legalized format. 

New Jersey online casino revenue recorded $1.3 billion in 2021, and with over twenty online gambling websites, the state’s revenue growth is expected to continue in an upwards trend. 

November of this year will mark New Jersey’s tenth anniversary since becoming the first state to offer citizens online casino gaming. And thus far, the Garden State has continued its dominance in the gambling stratosphere when recording an all-time high sports wagering and iGaming revenue. 

In December 2021, revenue was recorded at $4.4m per day, but the January 2022 figures rose to $4.4 million as online casinos generated $135.5 million – a 34% rise from January 2021. 

More impressively, New Jersey’s online casino market generated $24 million in state taxes, and it was Borgata with $39 million who outperformed the revenue leaderboards in January. 

“The momentum for online casinos will remain stalwart for New Jersey’s gaming industry no matter how much sports betting expands in New York.” Said Eric Ramsey, chief analyst for PlayUSA.com. 

“Revenue from online casinos has never been more important for the state’s tax collection.” 

New Jersey continued to produce significant profits within their physical casinos as well. From the 9 casinos in the Garden State, January 2022 saw $136 million in revenue – a 15% growth from last year. 

Again, Borgata owned the bragging rights, showing $48 million in revenue, with Hard Rock Casino showing $34 million, and Ocean Casino with $24 million. 

As more and more states enter the online casino market, the competition will undoubtedly rise. However, players will hit the jackpot as companies produce more and more methods to appease the customer base.