Online casinos are a little of a new phenomenon when it comes to the USA. While they may be far from a new concept, these platforms have only started to become legal in recent years in the Land of Opportunity.
A change in attitude toward gambling activities has allowed states to decide whether to implement their own regulations. This has allowed sports betting and iGaming to start emerging across the country. Admittedly, while the former has appeared to take off, the latter has been a little slower getting off the ground.
Nonetheless, there has been some movement regarding this pastime, with six states having legalized it within their borders; each with a degree of success.
As of the beginning of 2023, a total of six states have introduced legislation that permits iGaming. These six states include Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia. As highlighted, each has achieved success, with revenues having been rather favorable.
According to figures to have been reported in September 2022, the total revenue from iGaming activities nationally was $412.5 million. This was an increase of 20% from the year before, as September 2021’s figures showed $329.9 million had been generated. This was broken down in the following way:
- New Jersey: $135.2 million was generated in 2022 compared to $122.6 million in 2021 (9.4% increase).
- Michigan: $128.7 million was acquired from online casinos in 2022; a 20.5% increase on $102.4 million received last year.
- Pennsylvania: $112.7 million was obtained from iGaming in 2022; an increase of 15.2% as 2021 saw revenues of $97.8 million generated. $77.9 million was generated from online slots; an increase of 12% from the year before.
- West Virginia: A total of $10.3 million was generated in 2022, smashing the previous year’s revenues of $6.2 million – an increase of 40%!
- Connecticut: A promising start was reported in this state as it generated a total of $24.3 million in its debut year since introducing legal iGaming.
- Delaware: The state continued to show encouraging signs as it recorded its eighth month in a row of seven-figure revenues in September 2022, having generated $1.3 million; a 39% year-over-year increase. Online slots accounted for $1.05 million of that total.
With the figures in mind, it is clear to see that there is a growing market for the iGaming industry within the US. Each of the six states continues to see improved results, with millions of dollars being generated. This new revenue stream has become crucial for these states as it can be used to improve public services, improve infrastructure, and benefit the state in other important ways.
Why has each state been as successful when launching online casinos?
The success of each state when launching online casinos can be attributed to the legal framework that is in place. All six states have introduced laws and regulations that are designed to protect consumers and provide a secure environment for players. This has resulted in trust being built up among customers, leading them to feel safe playing with these sites.
In addition, each of these states has also taken steps to attract potential customers. Promotions and bonuses are regularly offered, with some sites even providing no-deposit bonuses. This has helped make the online casino market even more competitive, encouraging players to seek out the best deals that are available. For many, this is one of the reasons why New Jersey became a powerhouse with online casinos, as platforms in the region continued to offer positive experiences through this method.
Furthermore, it could be argued that each of the states to have legalized iGaming have perfect market conditions for operators. For instance, there is a strong gambling culture in some parts of these states, with players from the region being familiar with casinos. This has been key for some operators as it has allowed them to communicate more effectively with potential customers and form relationships that will endure in the future.
Could we see other states permit iGaming in the future?
Given how successful the six states have been in legalizing iGaming and launching online casinos, others will question if other states can have the same success. As stated before, the rollout of iGaming has been slow compared to sports betting. However, the figures recorded may encourage others to follow suit.
It can be hard to try and predict which areas of the US may look to launch iGaming in the near future. Nonetheless, there are four that could potentially look to do so in the near future. Maryland is surrounded by states that have already introduced it, therefore making it a candidate to do so in the future.
Locations such as Illinois, Indiana, and New York each see a future with the activity legalized within their borders. With the revenues generated by those legal already, they present an opportunity that could be too hard to ignore for too long. Nonetheless, whether any of them do so is something that time will only be able to answer.
By reading the latest news articles, one state that does not appear to be likely to follow is California. The Golden State decided to vote against the introduction of legal sports betting. This would seem to make it harder for any proposal to introduce iGaming very unlikely to pass in the near future.
The US has shown it can be a success for the online casino market
As can be seen from the figures presented above, it is clear that legal iGaming is on the rise in the United States. This has been made possible thanks to each state introducing its own laws and regulations that have provided a secure environment for players to enjoy gambling online. The industry has seen success with millions of dollars being generated as a result, which can be used to benefit the states and their citizens.
With Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia all showing how much revenue can be generated, others may find the prospect of introducing iGaming far too alluring in the coming years. While only time will tell, it will certainly be a very interesting watch and one that will have a number of spectators at all levels; each with a different interest, no doubt.