iGaming Thriving in Six States Where Online Casinos Allowed

Posted on: August 23, 2023, 11:59h. 

Last updated on: May 8, 2024, 09:44h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.

iGaming, internet gambling with interactive slots and table games, is permitted in only six states. Those half-dozen legal jurisdictions continue to experience revenue growth for the online platforms.

iGaming online casino gaming GGR
iGaming, or casino games played online, continues to attract new players. That has led to ongoing increased revenue for operators in the six states where internet casinos are allowed. (Image: Shutterstock)

With state gaming revenue reports in for July, data for the iGaming market shows the industry continues to enjoy substantial growth. That’s despite the pandemic being over and brick-and-mortar casinos long free of coronavirus-related restrictions.

But as retail play has reached record highs, iGaming has continued to flourish to unprecedented highs.

Compiled by CDC Gaming Reports, the six iGaming markets combined to win $482.6 million in July 2023. That represents a nearly 20% surge from July 2022, when the six online casino states reported gross gaming revenue (GGR) of $388.4 million.

iGaming is legal in New Jersey, Michigan, Pennsylvania, Connecticut, West Virginia, and Delaware. The revenue doesn’t include income from online sports betting or lottery games.

Convenient Casinos

Five of the six iGaming states experienced GGR gains in July.

New Jersey continues to generate the most online casino revenue, with its iGaming take last month totaling $155.2 million, a 12% year-over-year increase. iGaming climbed upwards of $1 billion for the year in only seven months, the state iGaming industry’s fastest ascent past the 10-digit mark in its history. iGaming went live in New Jersey in November 2013.

Michigan was a close second behind New Jersey at $153.6 million, up about 18%, or $27 million, from July 2022. Detroit’s iGaming market is operated by commercial casinos in Detroit and the state’s numerous gaming tribes that hold Class III state gaming compacts. Michigan’s iGaming market also crossed the $1 billion revenue mark in just seven months.

Pennsylvania placed third in July in iGaming win with $129.9 million. The online haul was 24% richer than the previous July.

Connecticut was fourth but at a distant $28.2 million. Connecticut’s iGaming market is relatively new, as the state’s two gaming tribes commenced their online operations in the fall of 2021. Mohegan Sun is partnered with FanDuel, and Foxwoods is with DraftKings for their iCasino offerings.

West Virginia iGaming totaled $14.4 million to place fifth, while Delaware’s state-operated online casinos won just $1.2 million. Delaware was the only iGaming jurisdiction to see a year-over-year GGR decline.

iGaming Outpaces Online Sportsbooks

Sports betting has dominated the U.S. gaming industry headlines in recent years. But oddsmakers run a small-margin business compared with online slots and interactive table games.

Sports betting is legal in more than 30 states. Net income last year for the combined retail and mobile sports betting industry was about $6.4 billion on $93.8 billion wagered. iGaming, in just six states, won more than $5 billion off gamblers.

After two full years of successive growth post-COVID, the US gaming industry has never been stronger,” American Gaming Association President and CEO Bill Miller said recently. “With records across every gaming vertical — from brick-and-mortar casinos to mobile gaming — American adults continue to choose gaming as one of their top entertainment options.”

Several states are considering joining the iGaming fray, most notably Maryland, where the state recently contracted a gaming consultancy to educate lawmakers on the potential tax benefits online casinos would bring to the state. The consultants also covered how to develop best practices and regulatory guidelines should they choose to legalize.