Internet Casino Gaming Revenue Totals $634.8 Million In May
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Operators in the seven states that offer internet casino gaming combined to generate $634.8 million in gross revenue for May, with all seven generating at least $1 million in taxes for the first time.
Rhode Island, which was the most recent state to launch (March), had its first seven-figure inflow into its state coffers after the Rhode Island Lottery reported Bally’s paid $1.1 million in taxes for May. Operating a de facto monopoly in the smallest state in the U.S., the $2.2 million Bally’s claimed in revenue was up 8.4% from its first full month of business in April.
Michigan led the group with $198.6 million in gross revenue, while New Jersey led in adjusted gross internet casino revenue with $192.1 million. Pennsylvania rounded out the top three at $174.1 million. Overall gross revenue was up 27.6% from last May and was the second-highest total in history behind the $678.4 million in winnings for March. Known handle exceeded $8 billion for the third consecutive month — Michigan and New Jersey do not report wagering amounts in their respective monthly reports.
The $607.3 million in AGR was also up 27.6% from last year as iGaming generated $128.1 million in state tax revenue. That was $29.2 million more than last year’s total as year-to-date state tax receipts edged over $625 million, up $138.3 million from the same period in 2023.
Bally’s accepted $61.2 million worth of bets in its online casino for May, up 27.5% from the $48 million-plus in April. That included a 22% increase in table games action to $27.5 million, but the 2.3% hold was down a full percentage point from the previous month, which contributed to a 15.3% decline in revenue to $627,500.
Though bettors also fared better playing online casino slots, knocking the win rate down nearly one-half of a percentage point to 4.8%, revenue still ticked 21.4% higher to $1.6 million as drop increased 32.2% to $33.8 million. That is an outcome acceptable to the state since it taxes slots at 61% compared to 15% for table games. The $2.6 million in taxes generated in the the first three months of iGaming has more than compensated for the $1.3 million less Bally’s has generated via sports betting in the Ocean State compared to the first five months of 2023.
Michigan, New Jersey, and Pennsylvania all recorded double-digit percentage increases compared to May 2023, with the Wolverine State having the largest jump at 31.9%. May was the second-best month for internet casino operators in Michigan, which remains the only state — so far — to exceed $200 million in monthly iGaming revenue after its $215.2 million haul in March. Pennsylvania winnings climbed 23.5%, while neighboring New Jersey reported a 19% rise — with May also good for the No. 2 all-time spot in its state annals.
The trio accounted for close to 89% of May’s overall gross internet casino revenue. Michigan leads in gross winnings at $976.6 million, but the 10% in permissible deductions allowed to operators there puts New Jersey atop the group for taxable revenue at $942.8 million, followed by Michigan ($880.7 million) and Pennsylvania ($873.1 million). The Keystone State, which led the group in tax revenue for May at $49.7 million, has accounted for close to 40% of the total 2024 tax receipts paid by operators at $247.1 million.
Connecticut‘s working duopoly of digital titans FanDuel and DraftKings combined for another monthly revenue record in May at $46.3 million in gross winnings. That was over $2 million more than its previous high set in March, extended the Nutmeg State’s streak with $40 million in gross revenue to six months, and represented a 41.3% year-over-year increase. The $1.37 billion in drop between the eternal rivals was also an all-time best in the state, exceeding $1.3 billion for the third straight month.
West Virginia iGaming operators reported a 61.6% surge in revenue compared to the previous May as the $16.8 million in winnings ranked third all-time. It was also a 4.1% increase in winnings from April, despite a 2.9% dip in handle to $415.8 million.
BetRivers, which got a reprieve from competition in Delaware on the sports betting side Monday when a bill in state legislature proposing to add up to six mobile operators failed to pass, continued to fare well on the internet casino side. Its first year in Delaware continues to provide exponential growth from predecessor 888 Holdings as the $3.9 million in adjusted gross revenue was more than triple the $1.2 million reported last year.
The $20.2 million in taxable operator winnings is already 43.9% higher than the full-year 2023 total, and the $13.2 million in tax revenue is on pace to surpass the $26.6 million generated from 2021-23. BetRivers has paid at least $2.2 million in taxes to Delaware every month since launching operations at the start of the year.
