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In August, US online casinos and poker rooms maintained the same exceptional performance they achieved in July. The annual growth rate remained almost unchanged at 32.5%, a level not previously seen since 2022.
The industry’s growth was at its highest in 2020 and 2021, thanks to a combination of new markets opening and the consequences of COVID-19. The pandemic shuttered the nation’s retail casinos in spring 2020, with many closing again the following winter. That induced many people who had previously gambled only in person to try casino apps for the first time.
Naturally, that pace of growth was only temporary. The growth rate predictably came down in 2022 and 2023 and was not yet looking like it had reached a baseline. However, instead of continuing to fall in 2024, it has begun to rise again, in almost all states with legal online casinos.
With the addition of Rhode Island this year, there are now seven such states. Together, they brought in over $690 million in August, 11% more than the $623 million projected by PlayUSA. Through seven months, the industry has made over $5.3 billion, on track for a full-year total of $8.2 billion.
‘Big Three’ States Converging on a Higher Growth Rate
Historically, the “Big Three” iGaming states — New Jersey, Michigan, and Pennsylvania — have been growing at different rates. New Jersey, as the most mature market, had the highest per capita revenue but seemed closer to its ceiling and, therefore, growing more slowly.
At the other extreme, Pennsylvania has the largest population and greatest potential. However, its rollout of iGaming was gradual because of sluggish regulatory approval for operators and content. As a result, it has been playing catch-up and growing faster than the other two, while trailing in per capita revenue.
Aside from a higher tax rate in Pennsylvania, there are not many reasons the markets should be different in the long term. Until this year, it appeared that the growth rate for Michigan and Pennsylvania would decline until they reached maturity and converged with New Jersey, perhaps somewhere in the high single-digits or low teens.
Indeed, there does seem to be convergence. However, at the moment, all three are trending toward a value north of 25%. Pennsylvania, which began the year close to that value, has held almost level. New Jersey, which came in at just 16%, has seen the greatest acceleration.
Such growth rates aren’t sustainable in the very long term. Eventually, a mature online gambling market should show single-digit growth similar to the retail sector’s. However, this year’s trend suggests that there’s still a lot of headroom before the market is truly mature.
| 2023 | 2024 (Proj.) | 2024 YTD | |
|---|---|---|---|
| PA | 26.3% | 21.0% | 27.5% |
| MI | 21.6% | 16.0% | 24.8% |
| NJ | 15.7% | 13.0% | 22.5% |
| CT | 44.7% | 36.0% | 37.7% |
| WV | 39.8% | 27.0% | 51.5% |
Online Gambling Revenue Highlights — August 2024
Pennsylvania
- PA online casinos and poker rooms won $225.0 million in August 2024, up 30.9% year-on-year. That’s the third month this year it has been above 30%, though still not as high as the growth rate in February or July.
- The daily average revenue was $7.3 million, up 4.5% though not quite reaching the record of $7.5 million the state set in March.
- Pennsylvania had been conforming closely to PlayUSA’s revenue forecast this year until July. However, August marks the second straight month it has beaten the projection by more than 10%. As a result, the year-to-date total is now 2.8% above the forecast.
- bet365 Casino made its Pennsylvania debut in late July, so August provides us with the first full month of revenue data for the new casino. It managed just over $3 million in revenue and a 1.4% share of the market, which isn’t bad for a sports-focused operator. However, it may still have some growing to do.
- Other than Presque Isle Downs (which hosts bet365), the licensee with the highest monthly growth was PENN, at 6.9%. However, that one license encompasses several important brands, including BetMGM and DraftKings, making it difficult to tell which brand or brands are responsible for the gains.
Michigan
- Michigan has likewise continued to recover from its seasonal slump, rising to $196.7 million in revenue for August. Last year, revenue was flat at this time, so the annual growth rate rose to 29.2%, the second-fastest rate of 2024, behind only May.
- Daily average revenue for Michigan online casinos rose slightly to $6.3 million, up 2.7% from $6.2 million in July.
- Unlike Pennsylvania, Michigan has been consistently ahead of the PlayUSA forecast since almost the beginning of the year. It beat the August projection by 9.2%, an even bigger margin than in July. That puts it ahead by 6.4% year-to-date.
- Caesars has the pedal to the metal in Michigan. Its flagship Caesars Palace Casino increased its daily average revenue by 10.0% and its market share to an all-time high of 6.4%. The online casino it acquired from Wynn Interactive did better still, up 28.6% — it will soon be rebranded as Horseshoe Online Casino, though for now it still bears the WynnBet name.
New Jersey
- New Jersey online casino and poker sites earned $198.4 million in gross revenue in August, a state record. The Garden State has flirted with the $200 million mark once before, in March, but hasn’t yet reached it. Seasonal trends being what they are, it likely will surpass that figure in September.
- New Jersey’s annual growth rate climbed to 27.8%, nearly matching February’s 27.9%, which was the highest for the state in two years.
- Remarkably, there has been no summer slump to speak of in New Jersey. Its daily average revenue increased to $6.4 million per day in August, the fourth consecutive month in which it has crept upwards.
- New Jersey beat the forecast by a whopping 13.3% in August, the highest margin yet achieved by any of the Big Three states. Year-to-date, its revenue totals $1.70 billion, nearly $50 million more than it was forecasted to have made by this point.
- FanDuel Casino added 1.5 percentage points to its market share, fighting back against gains made last month by BetMGM and its secondary brands.
- Jackpocket Casino bounced back from a slow July in a big way, nearly doubling its revenue and inching close to a full 1% of the market, which would be remarkable for a fledgling brand in the most saturated market in the US.
Connecticut
- Connecticut’s two online casinos won $44.6 million in August, up 42.9% year-on-year. That’s a bit of a slowdown compared to 48.8% in July, but still faster than the Big Three states.
- Daily average revenue climbed over $1.4 million, up 6.3% month-over-month.
- Connecticut online casinos beat the PlayUSA forecast by 2.6% in August. Due to Pennsylvania’s acceleration over the summer, Connecticut is now the state most closely tracking the projection in its year-to-date total, which is only 1.0% behind where it was expected to be.
- DraftKings Casino ramped up its promotional spending by 5.5% while Mohegan Sun dialed back by 7.0%. The immediate impact was small, with DraftKings’ market share rising less than one percentage point to 54.7%. However, changes in one month’s spending are often only reflected in market share the following month.
West Virginia
- The West Virginia online casino market produced $20.4 million in gross revenue in August, its third month over $20 million. Its annual growth rate hit 76.5%, the highest it has been in nearly two years.
- Daily average revenue in the Mountain State rose 2.2% to $659,525. Modest recovery in August has been typical for the state in previous years, having doubled annually for its first two years.
- The Mountain State has historically been the fastest-growing online casino market in the US. In 2023, the growth rate came down sharply, but it has been surging back to a remarkable degree.
- The Greenbrier license (FanDuel, BetMGM & Golden Nugget) has pulled back ahead of Charles Town (DraftKings, Fanatics), increasing its daily average revenue by 10.4% and its market share to 41.6%. In July, the two were effectively deadlocked, though technically Greenbrier was ahead by less than $3,000. That marked the eighth change in market lead in the span of a year.
Delaware
- Delaware’s BetRivers-operated online casinos brought in nearly $5.8 million in August, setting a record for the third straight month.
- Daily average revenue was $185,510, up 10.7% from June. The annual growth rate compared to the old 888-powered site is a staggering 419.4%, also a record.
- Delaware online casino players seem to love table games, especially since live dealer games became available in July. The share of revenue from slots dropped to 65.1% in August, far below what we see in other states that report such data. For instance, Pennsylvania’s share of gaming revenue from slots has averaged 76.1% over the past 12 months.
Rhode Island
- Rhode Island has not yet reported its August revenue.
US Online Gambling Revenue Summary Table
| State | GGR – August 2024 | Monthly Change | Annual Change | Month vs. Forecast | Full Year Total | Year vs. Forecast |
|---|---|---|---|---|---|---|
| Pennsylvania | $224,996,705 | +4.5% | +30.9% | +11.3% | $1,702,359,704 | +2.8% |
| New Jersey | $198,377,828 | +1.5% | +27.8% | +13.3% | $1,520,075,051 | +7.2% |
| Michigan | $196,660,172 | +2.7% | +29.2% | +9.2% | $1,547,904,209 | +6.4% |
| Connecticut | $44,579,411 | +6.3% | +42.9% | +2.6% | $343,477,684 | -1.0% |
| West Virginia | $20,445,285 | +2.2% | +76.5% | +29.8% | $149,747,556 | +15.6% |
| Delaware | $5,750,795 | +10.7% | +419.4% | +283.4% | $36,216,871 | +201.8% |
| Rhode Island | $2,750,000 (Est.) | TBD | N/A | TBD | $13,250,000 (Est.) | TBD |
| US Total | $693,560,196 | +3.2% | +32.5% | +11.4% | $5,313,012,495 | +5.4% |
Notes on the Data
Raw data for this article comes from reports issued by the state regulators: the New Jersey Division of Gaming Enforcement, Pennsylvania Gaming Control Board, Michigan Gaming Control Board, West Virginia Lottery, Delaware Lottery and the Connecticut Department of Consumer Protection.
The 2024 online gambling revenue projections are original calculations performed by Alex Weldon as a collaboration between Bonus.com and PlayUSA. Please cite PlayUSA and Alex Weldon if reporting projected numbers or market performance compared to the projections.
Monthly growth figures are adjusted for the number of days in the month. That is, they represent the change in daily average revenue, not full-month gross revenue.
West Virginia reports revenue weekly, not monthly. Its monthly totals are an estimate, assuming that revenue for partial weeks is distributed evenly between the seven days.
Pennsylvania only reports adjusted revenue (gross revenue, less promotional spending). Gross slots revenue is calculated by subtracting payouts from wagers, but no such data is available for table games and poker. Therefore, actual gross revenue is probably somewhat higher than what we report.
