US Online Gambling Revenue December 2019 : $60M
This column is part of Betting USA’s monthly market analysis that looks at trends in legal US online gambling markets.
2020 is shaping up to be a big year for legal online poker and online casino in the US. The existing markets are thriving, legislation is moving forward in Kentucky, and two other states (Michigan and West Virginia) are prepping for a late-2020/early-2021 launch.
As noted, legal online gambling is thriving in the four markets it’s being offered: Nevada, Delaware, New Jersey, and Pennsylvania. But only three of those markets breakout online gambling revenue in their revenue reports. Nevada online poker revenue is lumped in with land-based revenue.
Here are the big takeaways from the December revenue reports from those three online gambling states:
- New Jersey flirted with $50 million last month (again);
- Pennsylvania surpassed $10 million in online gaming revenue; and
- Delaware continued its year-long trend of year-over-year growth.
The National Online Gambling Numbers
The three online gambling states (because the state doesn’t report online revenue, Betting USA doesn’t include Nevada’s online poker industry in this analysis) generated a combined $60 million in online casino and online poker revenue for the second consecutive month.
December gross online gaming revenue:
- New Jersey: $49,327,957
- Pennsylvania: $10,624,699
- Delaware: $306,477
A State-By-State Look at Online Gambling
Here’s a more detailed look at the recent revenue trends in each state.
New Jersey Continues to Be the Unstoppable Force
It was close, but December was the sixth consecutive month that the New Jersey online casino revenue set a new revenue record, eclipsing last month’s tally by $190k.
According to the December revenue report released by the New Jersey Division of Gaming Enforcement, online casino and poker revenue was $49.3 million. That represents a 70% Y/Y increase.
For the year, land-based casino revenue was relatively flat compared to 2018, but the growth of online gambling and sports betting led to total gaming revenue rising 11% Y/Y.
Online gambling tallied $482 million in 2019, and research firm Eilers & Krejcik Gaming expects that growth to continue in 2020. According to E&K estimates, NJ online casino and poker will generate $610 million in 2020. Growth will be spurred on by cross-sell from sports betting, as well as increases in advertising from new brands and existing brands in the highly competitive market.
Pennsylvania Passes the $10 Million Threshold
Pennsylvania is finding its online gambling sea legs.
December saw the smattering of online casinos generate more than $10 million. That number seems unimpressive next to New Jersey’s $50 million month, but it tracks well with where New Jersey was in its fifth month. In April 2014 the New Jersey online gambling industry generated $11.4 million.
It will be interesting to see if Pennsylvania can continue to mimic New Jersey’s growth, or if its burdensome tax rates on online slots will tamp down marketing efforts in the state.
Delaware Online Gambling Growth Continues in December
Delaware’s online gambling industry doesn’t get a lot of attention, but the Blue Hen State has seen a very nice uptick in online casino revenue throughout 2019.
It’s unclear if Delaware can continue this growth trend given the current constraints its online industry operates within, including the following:
- Delaware is a monopoly state with the lottery offering the same platform through the state’s three racinos.
- Because of the tax structure, the state receives the bulk of revenue generated online. That makes it difficult for the racinos to justify any marketing and promotional spend.
- Delaware online poker operators do not offer mobile apps.
Steve Ruddock is the content director for BettingUSA and the Editor-in-Chief of Gaming Law Review.
Steve has covered the legal and legislative developments in the US gambling sector for more than a decade for online and print publications.
