Online Gaming Revenue Surge: September Results Show Growth across Major States
The world of online gaming witnessed a remarkable uptick in revenue this past September, signaling a robust trend as more gamblers flock to their computers and mobile devices. With football season kicking off, states saw notable increases in sports betting, while online poker revenues stagnated. As each state reports its numbers, it is evident that the online gaming industry continues to thrive in the face of declining live casino revenues. Let’s delve into the details of how major states are faring in this evolving gaming landscape.
Pennsylvania: Steady Gains Amid Challenges
In September, Pennsylvania reported a total gaming revenue of $505.9 million, reflecting an increase of 6.2% year-over-year, according to the Pennsylvania Gaming Control Board. Online gaming played a pivotal role in this growth, with revenues reaching $176.7 million—up 10.8% from $159.5 million in September 2023. Here’s a breakdown of the online gaming revenue:
- Slots: $132 million
- Table games: $42.4 million
- Poker: $2.2 million (slight decrease from August’s $2.3 million)
Sports betting also contributed significantly, with a total handle of $811.3 million, representing an impressive 11.71% increase compared to $726.3 million in September the previous year. The state’s taxable revenue stood at $53.5 million, which is a staggering 46.1% higher than in 2023, showcasing the strong interest in sports betting activities.
New Jersey: A Mixed Bag of Results
New Jersey presents a more complex picture, where concerns over declining live casino revenue continue to loom large. The state’s nine casinos reported combined revenues of $230.6 million in September, marking a decrease of 6.5% from $246.5 million last year. Year-to-date figures reveal a slight drop of 0.9%, totaling $2.15 billion.
Conversely, the online gaming sector flourished, generating $208.1 million—surging by 27.1% from $163.8 million in September 2023. This robust performance brings online gaming revenue closer to matching that of live gaming. Year-to-date, online gaming has amassed $1.73 billion, which is a notable 23.2% increase from the prior year’s $1.41 billion.
Online poker in New Jersey also experienced a downturn, garnering $2.2 million in September, down 6.9% from $2.4 million in the same month last year. However, sports wagering revenue saw a 7.6% improvement, amounting to $119.6 million in September compared to $111.1 million in 2023. The year-to-date total for sports betting stands impressively at $835.4 million, marking a 17.8% rise from $709 million last year.
Overall, the total gaming revenue in New Jersey reached $558.3 million, up 7.1% year-over-year, pointing to a promising future for online gaming amidst challenges facing brick-and-mortar venues.
Michigan: Momentum in Online Gaming
The Michigan gaming market showcased dynamic growth in September, with reported revenues of $261 million for online gaming and sports betting—an impressive rise of 16.5% from August. Breaking down these numbers, online casino gaming accounted for $202.6 million, while sports betting contributed $58.4 million, an increase from $196.66 million and $27.36 million respectively in August.
Additionally, total online sports betting handle soared to $501.8 million, reflecting a massive 79.2% increase from the previous month’s $280.1 million. Adjusted gross receipts for iGaming and sports betting reached $209.9 million, signaling healthy growth with a 3.1% increase in iGaming revenues and a staggering 68.7% increase in sports betting compared to August. Year-over-year, sports wagering was up an impressive 47.2%, with iGaming showing a 21.8% increase in the same frame.
Though online poker statistics are lumped together with that of online casino gaming in Michigan, it remains likely that trends in this category align with those seen in Pennsylvania and New Jersey, suggesting a potential plateau in poker revenues while other gaming sectors flourish.
Conclusion: A Bright Future for Online Gaming
The numbers emerging from these major gaming states underscore a significant shift in consumer behavior as more players turn to online platforms for their gaming needs. While live casino revenues may struggle, the resilience and growth in online gaming suggest a robust and evolving market. With the continued popularity of sports betting and a steady interest in online gaming overall, September serves as a strong indicator of what lies ahead for the industry. As states refine their gaming regulations and foster competitive environments, the online gaming landscape is poised for further expansion, creating exciting opportunities for both operators and players alike.
