iGaming Revenue Surges to a Combined $578M in August for PA, NJ, & MI
The U.S. iGaming market (online casino gambling) has been slowly maturing. This maturity regularly produces growing profits for licensed online gaming operators. Growing profits for operators matter because participating states benefit from capturing tax revenue that used to flow into the coffers of foreign iGaming providers.
Rest assured, this is a major deal because there are dozens of states watching, wondering if online casino gambling might be the answer to their state budget concerns. It makes perfect sense that states like Indiana, Illinois, Louisiana, and Ohio would be watching the numbers, thinking it might be time to pass online casino gambling legislation in their respective states.
The numbers for August 2024 have been reported by top iGaming states, and the going-forward outlook continues to look strong. Let’s take a look.
States That Have Legalized Online Gambling
A total of 39 U.S. states have legalized retail and or online sports betting. That’s in contrast to a meager 7 states that have legalized online casino gambling, with those states being:
- Connecticut
- Delaware
- Michigan
- New Jersey
- Pennsylvania
- Rhode Island
- West Virginia
It’s worth noting that the vast discrepancy between online sports and casino gambling can be attributed to states that are struggling to pass iGaming legislation. They are struggling due in large part to conflicts with licensed retail casino operators that are unwilling to sacrifice any of their casino gambling revenue.
In August 2024, the combined online casino gambling revenue of Michigan, New Jersey, and Pennsylvania surged to $577.6 million. In each of these states, the reported revenue numbers represent a significant increase over what was reported a year ago. That continues a year-over-year trend that started in August 2019.
Let’s take an in-depth look at the August numbers for the three aforementioned states.
Michigan
August was a solid month for the Wolverine iGaming market. According to a report released by the Michigan Gaming Control Board, the state’s licensed iGaming operators raked in an amazing revenue of $196.7 million. That represents a month-over-month increase of 2.8%, which comes on top of a similar increase from June to July. It’s worth noting that another milestone was achieved, which was the lifetime mark for iGaming revenue in the state, which crossed the $6 billion threshold.
Once again, BetMGM Casino led the way in Michigan. The U.S.-based online casino operator accounted for $52.4 million of the revenue reported across the Great Lakes state. They narrowly beat out Fanduel Casino by $4 million. This is good news for BetMGM’s management as BetMGM and Fanduel have been dueling for the top position for over a year now. The state’s leading licensed iGaming provider has reestablished its dominance after losing its lead to Fanduel in March and April of this year.
Here are the revenue numbers reported by the state’s other key licensed operators:
- DraftKings Casino – $36.6 million
- BetRivers Casino – $13 million
- Caesars Sportsbook and Casino – $12.6 million
- Golden Nugget Casino – $7.4 million **
Note: In August, the Michigan State Treasury collected $36.9 million in iGaming taxes and projects a total of $400 over the entire fiscal year ending December 31, 2024.
New Jersey
The iGaming market was even bigger and better in New Jersey. On September 16, 2024, the NJ Division of Gaming Enforcement reported $198.4 million in August revenue, which represents a record monthly high for the Garden State. The fact August beat the prior record of $197.2 million reported in July bodes well for the NJ online casino market moving forward.
From a percentage standpoint, the monthly revenue increased 1.5% over what was reported in July and an astounding 27.8% over what was reported in August of last year.
At this point, New Jersey iGaming operators are collectively chasing the magical $200 million a month threshold. It’s noteworthy that both Michigan and Pennsylvania have already been to that promised land.
At the operator level, DraftKings Casino continues to lead the way among a population of 30 or so licensed iGaming operators. As a point of reference, here are the “slot & table” revenue numbers for the state’s top-10 operators:
- DraftKings – $43,221,374
- FanDuel – $41,331,301
- BetMGM – $21,791,042
- Borgata – $19,944,078
- Caesars Palace – $14,021,440
- Hard Rock Bet – $9,938,704
- Golden Nugget – $6,696,947
- BetRivers – $5,873,509
- Bally – $5,610,243
- ESPN Bet – $3,213,500
As a side note, New Jersey’s online casino community welcomed Fanatics Casino into the fold. The operator took over the license formerly held by PointBet out of Australia. They reported $2,610,999 for a portion of the month only.
Pennsylvania
The nation’s third-highest iGaming mark went to Pennsylvania. They came through with a big month of their own. The state’s top regulatory body (the Gaming Control Board (GCB)) reported online casino revenue for August at $181.5 million, which came from online slots ($138.3 million) and table games ($43.2 million). That represents Pennsylvania’s second-highest historical mark, falling just short of the %191.1 million reported in March of this year. The August 2024 mark represents a 26.7% increase over the $144,980 retorted in August 2023.
Once again, Hollywood Casino at Penn National Race Course led the iGaming community in online casino gambling revenue at $72.1 million. Valley Forge Casino Resort remained a distant second, at $46.0 million, with Rivers Casino Philadelphia closing out the top three at $30.8 million.
Gaming Market Analysis
The continued strength of the iGaming markets in these three states is sure to drive other states to consider passing online casino gambling. It’s getting increasingly more difficult for lawmakers across the country to justify passing a reliable tax source while complaining there isn’t enough money to run their states.