Business is booming for the Delaware Lottery.
The lottery recently released its iGaming revenue report for August, and it was a good one. Online gambling revenue broke records for the second straight month and were up nearly 40% year-over-year.
Delaware’s record-breaking revenue numbers have been brewing since December, when the lottery saw revenue eclipse a significant milestone.
Delaware online gambling revenue has been rising for past eight months
Back in December, revenue hit $1.09 million. It was only the second time in Delaware online gambling that the million-dollar mark was hit. Revenue surpassed $1 million again in January, dipped below $850,000 in February, and has surpassed $1 million each month since:
- March: $1.00 million
- April: $1.22 million (new record)
- May: $1.10 million
- June: $1.12 million
- July: $1.25 million (new record)
- August: $1.30 million
This year has been a standout one for Delaware iGaming, as it’s the first time in history that revenue has topped $1 million more than once in a calendar year.
August’s exact revenue total was $1,296,973.28, made up of revenue from the state’s three licensed iGaming facilities:
- Delaware Park: $558,271.83
- Bally’s Dover: $412,044.43
- Harrington: $326,657.02
This month was a significant one for all three licensees because it marked the first time that three hit more than $500,000, $400,000, and $300,000, respectively, in a single month.
Pandemic created revenue boost that has yet to cool off
Up until 2020, the Delaware Lottery’s iGaming revenue was relatively paltry. For example, in 2019, revenue passed $300,000 only four times. However, when the pandemic set in, lottery players had more time at home. That translated to an incredible boost in revenue in the first six months of the year:
- January: $387,865
- February: $324,958
- March: $514,959
- April: $856,182
- May: $1.13 million
- June: $964,607
Since June, revenue never dropped below $550,000, an almost unimaginable data point considering the history of iGaming revenue. Before 2020, revenue had never surpassed $400,000.
What’s ahead for online gaming in Delaware
All the signs indicate that Delaware’s iGaming revenue will continue to thrive. Revenue took a significant jump in 2020, and took another jump starting in late 2021.
The pattern over the past three years has been one of benchmarks and consistency. Revenue eclipsed $500,000 in 2020 and did not fall below that through the rest of the year.
The numbers surged past $1 million in late December, and, since then, revenue hasn’t dropped below $900,000.
The next benchmark is $1.5 million. If the state’s revenue history is any indication, it’s likely that $1.5 million will serve as a baseline, and revenue will climb toward $2 million.
Could a recession halt revenue growth?
That being said, iGaming revenue may face a plateau or slight decline in the next year. Economists predict that the economy will dip into a recession as the Federal Reserve raises interest rates. Delaware iGamers may have fewer discretionary dollars to spend, leading to a dip in overall revenue.