US iGaming Revenue Surpasses $634 Million for May

Article by : Erik Gibbs Jul 4, 2024

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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.

Michigan led all states with $198.6 million in gross revenue, followed by New Jersey with $192.1 million in adjusted gross Internet casino revenue, and Pennsylvania with $174.1 million. 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.

Bally’s in Rhode Island accepted $61.2 million worth of bets in its online casino for May, up 27.5% from April’s $48 million-plus. Rhode Island saw a 22% increase in table games action to $27.5 million, but the hold dropped to 2.3%, contributing to a 15.3% decline in revenue to $627,500.

Online casino slots in Rhode Island saw a win rate decrease to 4.8%, but revenue increased 21.4% to $1.6 million as the drop increased 32.2% to $33.8 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 less Bally’s generated via sports betting in Rhode Island compared to the first five months of 2023.

The “Big 3” states recorded double-digit percentage increases compared to May 2023. Michigan had the largest jump at 31.9%, marking its second-best month ever with $198.6 million in gross revenue.

Pennsylvania’s winnings climbed 23.5%, and New Jersey reported a 19% rise, both achieving their second-best months. These three states accounted for close to 89% of May’s overall gross Internet casino revenue.

Michigan leads in gross winnings at $976.6 million; however, New Jersey tops the group for taxable revenue at $942.8 million, followed by Michigan ($880.7 million) and Pennsylvania ($873.1 million). Pennsylvania led in tax revenue for May at $49.7 million and accounted for close to 40% of total 2024 tax receipts, totaling $247.1 million.

Connecticut’s FanDuel and DraftKings combined for a monthly revenue record of $46.3 million in May, a 41.3% year-over-year increase. Connecticut saw its sixth consecutive month of over $40 million in gross revenue and achieved an all-time best of $1.37 billion in drop.

West Virginia iGaming operators reported a 61.6% revenue increase compared to the previous May, with $16.8 million in winnings. Despite a 2.9% dip in handle to $415.8 million, West Virginia saw a 4.1% increase in winnings from April.

BetRivers in Delaware, which faced reduced competition after a legislative bill to add more mobile operators failed, reported $3.9 million in adjusted gross revenue, more than triple the $1.2 million from the previous year.

BetRivers’ $20.2 million in taxable operator winnings was 43.9% higher than the full-year 2023 total. BetRivers has consistently paid at least $2.2 million in taxes to Delaware every month since launching operations at the start of the year.

Delaware’s $13.2 million in tax revenue is on pace to surpass the $26.6 million generated from 2021 to 2023.