US iGaming Revenue Surpasses $634 Million for May

The Internet casino gaming industry saw significant year-over-year gains in several states, with the "Big 3" states — Michigan, Pennsylvania, and New Jersey — leading the charge. These states reported at least 19% increases in Internet casino gaming revenue.

Combined, operators in the seven states that offer Internet casino gaming generated $634.8 million in gross revenue for May, marking a substantial achievement for the industry. Each of the seven states generated at least $1 million in taxes for the first time, underscoring the growing financial impact of Internet gaming.

Rhode Island, the most recent state to launch Internet casino gaming in March, achieved its first seven-figure inflow into state coffers, with Bally’s paying $1.1 million in taxes for May. Bally’s reported $2.2 million in revenue for May, an 8.4% increase from its first full month of business in April.

Major Market Performers

• Michigan: $198.6 million in gross revenue — the highest among all states.

• New Jersey: $192.1 million in adjusted gross Internet casino revenue.

• Pennsylvania: $174.1 million in gross revenue, rounding out the top three.

Overall gross revenue for May was up 27.6% from last May, making it the second-highest total in history behind March’s $678.4 million. Known handle exceeded $8 billion for the third consecutive month, although Michigan and New Jersey do not report wagering amounts in their monthly reports.

The adjusted gross revenue (AGR) of $607.3 million represented a 27.6% increase from the previous year, generating $128.1 million in state tax revenue, which was $29.2 million more than the previous year. Year-to-date state tax receipts surpassed $625 million, up $138.3 million from the same period in 2023.

Rhode Island’s Growth and Revenue Mix

• Bally’s accepted $61.2 million worth of bets in May, up 27.5% from April.

• Table games saw a 22% increase in action to $27.5 million, though hold dropped to 2.3%.

• Online slots win rate decreased to 4.8%, yet revenue increased 21.4% to $1.6 million.

Rhode Island taxes slots at 61% and table games at 15%, generating $2.6 million in taxes in the first three months of iGaming. The $2.6 million in iGaming taxes more than compensated for the $1.3 million decline Bally’s experienced in sports betting compared to the same period in 2023.

“Big 3” and Emerging Markets

• Michigan: +31.9% year-over-year growth, second-best month ever.

• Pennsylvania: +23.5% increase, one of its top-performing months.

• New Jersey: +19% rise, securing its second-best performance.

These three states accounted for close to 89% of May’s overall gross Internet casino revenue. Michigan leads in total gross winnings at $976.6 million, while New Jersey tops taxable revenue at $942.8 million, followed by Michigan ($880.7 million) and Pennsylvania ($873.1 million). Pennsylvania led in tax revenue for May with $49.7 million, representing nearly 40% of total 2024 tax receipts at $247.1 million.

Connecticut’s FanDuel and DraftKings combined for a record $46.3 million in monthly revenue for May—a 41.3% year-over-year increase. West Virginia saw 61.6% revenue growth, and Delaware’s BetRivers reported $3.9 million in adjusted gross revenue, more than triple last year’s total.

Overall, the Internet casino gaming industry continues to show strong momentum and sustained expansion across multiple states. With rising tax contributions, robust growth in the “Big 3,” and emerging markets like Rhode Island and Delaware gaining ground, the sector is poised for continued success in the U.S. digital gaming landscape.