US iGaming Market’s Scorching-Hot Summer Continues Through August 4a3s6j
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. 2a4862
iGaming 4p6m6t
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.
Historically, the “Big Three” iGaming state — 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.
Source: playusa.com
