America's iGaming Revenue Sees Record Gains in 2020
Online gambling ended the year with the continued gains in US markets.
Delaware more than doubled their iGaming revenue to a record year-on-year $8.4 million in 2020. That was an increase of over 133% compared to the same period the year prior.
The vast majority of the state’s iGaming revenue came from video lottery games. The state took in $6 million in revenue on over $120 million wagered.
In December alone, DE brought in nearly $700,000 in tax revenue from iGaming on $17.5 million wagered, an increase of over 90% compared to 2019 levels.
Additionally, Delaware saw 572 newly registered players, the largest amount seen since July 2020.
New Jersey also saw more record breaking numbers in December 2020. The New Jersey Division of Gaming Enforcement (NJDGE) has reported an 8.9% year-on-year increase in revenue for the month, thanks in large part to online sports betting.
Online gambling revenue for December was up over 101% compared to 2019, amounting to $99.5 million.
The top casino in the NJ market was Golden Nugget with $29.4 million in revenue, followed by Borgata ($27.2 million) and Resorts Digital ($21 million).
Looking at the annual numbers also has us seeing staggering numbers! In 2019, revenue from online gambling was at $482.7 million while in 2020 that number increased to $970.3 million. Online casinos and slots accounted for $931.5 million of that revenue while online poker was $38.8 million.
Why such record breaking numbers?
Due to COVID-19 in the US, land-based casinos have either temporarily closed their doors or are operating at minimum capacity.
This has led the overall gambling industry to see record losses for the year. But many of these players that would ordinarily play at their local casinos have found the online casino markets to give them the same great experience from the safety and comfort of their own homes.
The US has been one of the hardest hit by the pandemic, seeing 23.4 million positive cases and approaching 400,000 total deaths.
While the good news is that the vaccines are being rolled out, the bad news is that there is no expectation to return to a sense of normalcy any time in the immediate future.
As such, land-based casinos can expect to continue to see similar levels of revenue as they did last year. Meanwhile, online casinos are predicted to continue to see positive growth in US markets.
Continued Market Expansions
Online casinos are legal in the US on a state-by-state basis. Currently, they are only legalized in Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia. Michigan is expected to go live with online casinos in the near future.
Seeing the success of these online casinos in NJ, PA, and DE, has governors and state legislators from other states reconsidering their own positions for their states.
Gov. Lamont of Connecticut has endorsed legalizing online gambling for his state, and state Rep. Alan Morrison in Indiana has also introduced a bill that would legalize iGaming. There is no doubt that legalization would bring much needed revenue to these states during these times.
As more and more states continue to jump on this bandwagon, we can only expect even greater revenue growth for online gambling in the US. All market predictors are expecting 2021 to be another record-breaking year.