Keys to growing online casino revenue in the U.S.
In 2022 in the United States, online casino revenue in the six states where iGaming is legal, New Jersey, West Virginia, Michigan, Delaware, Pennsylvania, and Connecticut, grew 35.2 percent year-over-year (YoY) to $5.0 billion. That is, since the highest court in the nation overturned the Professional and Amateur Sports Protection Act (PASPA) in May 2018, paving the way for state-by-state legalization.
The reversal by the U.S. Supreme Court allowing sports betting saw a floury of states pounce on the new opportunity. By the time early 2023 rolled around, sports betting had been legalized in 33 states and the District of Columbia. That includes 24 jurisdictions where online betting is legal.
However, the majority of U.S. states were slower to legalize iGaming activities, but that didn’t stop gamblers from making their mark in those states with legal online casinos, as reflected by the YoY gain last year. And, according to the American Gaming Association (AGA), in the first quarter of 2023, iGaming generated $1.48 billion in gross gaming revenue (GGR), a 22.7 percent increase from the same period in 2022. That is with the same half-dozen iGaming markets live during the quarter, not including Nevada online poker), from a year ago.
Market Drivers
In addition to technological advances such as the 5G network, increases in internet access, smartphone proliferation, security and anonymity, cryptocurrency and blockchain technology, and marketing, the availability of bonuses make online casinos an attractive option for players. A player can usually expect to receive a bonus offer(s) when they make their first deposit.
Casino Bonuses
Some examples of online casino incentives available to players in the U.S. include a Welcome Bonus, which is typically offered to new members when they make their first deposit; VIP or loyalty rewards such as tier credits based on play; free spins; no-deposit bonuses; and reload bonuses, which are sometimes offered to players who have already made a deposit in their online casino account at that particular casino in the past. It is important to remember that in order for bonus funds associated with a welcome bonus to be released, you must first meet the wagering requirement imposed by the online casino.
According to the AGA, in Q1 2023, land-based casinos, including retail sports books, comprised 75.3 percent of commercial gaming revenue. iGaming and sports betting, meanwhile, accounted for 24.7 percent, a record quarterly share, with a total of $4 billion. The combined share of iGaming and sports betting for the quarter ranged from West Virginia’s 24.3 percent to a significantly higher 63.6 percent in Michigan, where the revenue share does not consider gaming revenue from generated from the Midwestern U.S. state’s 23 tribal casinos.
