September Surge: Online Gaming Revenue on the Rise in Major States
As the online gaming industry continues to evolve, September 2023 marked a significant month for several states as they reported notable increases in revenue. With football season kicking off, sports betting saw a remarkable uptick as more gamblers turned to their computers and mobile devices for their wagering needs. However, the landscape for online poker appears to be less vibrant, remaining relatively stagnant. Let’s dive into the latest numbers from key states, examining how they fared during September.
Pennsylvania: A Steady Climb
In Pennsylvania, the gaming scene thrived with a total revenue of $505.9 million across all gaming formats—a 6.2% increase year-over-year. The Pennsylvania Gaming Control Board reported that online gaming contributed $176.7 million to this figure, marking a 10.8% rise compared to the previous year’s September revenue of $159.5 million.
- Breakdown of Online Gaming Revenue:
- Slots: $132 million
- Table Games: $42.4 million
- Poker: $2.2 million (down slightly from August’s $2.3 million)
On the sports betting front, Pennsylvania reported a handle of $811.3 million in September, up 11.71% compared to $726.3 million in September 2023. Taxable revenue from sports betting also saw a substantial rise, reaching $53.5 million, which is 46.1% higher than the previous year.
New Jersey: Online Growth Amid Live Casino Decline
New Jersey’s gaming landscape painted a mixed picture in September. The New Jersey Division of Gaming Enforcement reported $230.6 million in revenue for the state’s nine casinos, a 6.5% decrease from $246.5 million in September 2023. Year-to-date revenue hovered at $2.15 billion, down 0.9% from last year.
On a brighter note, online gaming saw remarkable growth, generating $208.1 million which is a 27.1% increase from $163.8 million in September 2023. For the year, online gaming revenue stands at $1.73 billion, reflecting a 23.2% rise compared to $1.41 billion during the same period in 2023.
- Online Poker: Produced $2.2 million, down 6.9% from $2.4 million in the previous year.
- Sports Betting: Generated $119.6 million, up 7.6% from $111.1 million in 2023.
Overall, New Jersey’s combined revenue for all gaming formats reached $558.3 million, an increase of 7.1% from $521.5 million the previous September, with total gaming revenue for the year climbing to $4.72 billion, a 10.1% increase year-over-year.
Michigan: A Notable Upsurge
In Michigan, September proved to be a successful month for online gaming and sports betting, with operators reporting $261 million in combined revenue—up 16.5% from August. Online casino gaming led the charge, contributing $202.6 million, while sports betting brought in $58.4 million, a significant boost from $196.66 million and $27.36 million in August, respectively.
- Adjusted Gross Receipts (AGR): Totaled $209.9 million, with $182.3 million from iGaming and $27.6 million from sports betting. This represented a 3.1% increase for iGaming and a staggering 68.7% increase for sports betting compared to August.
The sports betting handle in September reached $501.8 million, which showcases a drastic increase of 79.2% compared to $280.1 million in August. Although online poker figures are combined with online casino gaming in Michigan, it’s likely that the trends mirror those seen in Pennsylvania and New Jersey.
Conclusion: A Dynamic Future
The online gaming sector across Pennsylvania, New Jersey, and Michigan showcased a robust performance in September, largely driven by sports betting as fans embraced the football season. Despite a stagnant trajectory for online poker, the overall ecosystem remains optimistic, with online gaming revenues experiencing significant growth. As states adapt to the changing demands and preferences of gamblers, the focus will likely shift towards enhancing the gaming experience and expanding offerings in this ever-evolving market. With the foundation laid in September, these states can expect to see continued innovation and potential gains in the months to come.
