The country’s online casinos ended 2021 with a flourish as they earned a combined $418.3 million in revenue during December.
Online casino gaming is now legal in six states after Connecticut joined the party in mid-October last year. Bills seeking to legalize online casinos in Indiana and Iowa have been filed this month, so the industry could grow larger in 2022.
New Jersey led the way with $133.2 million in iGaming revenue in December. That represented a 9.3% increase on the previous month and a 34% increase in December 2020.
The Garden State has the oldest iGaming industry in the United States, and it has achieved 20% year-on-year growth on average since launching in 2013.
Soaring Revenue in Pennsylvania and Michigan
Pennsylvania was a close second with $127.6 million in online casino revenue in December, a 7.9% month-on-month increase. It was also up 17.6% in the same period in 2020.
The Penn National master license, which hosts BetMGM, DraftKings Casino, and a couple of smaller operators, captured almost 40% of the revenue in the Keystone State. Caesars and several other brands enjoyed strong growth in December.
Revenue for Michigan reached $121.8 million in December, an increase of 9.5% in November. It also shattered the state’s monthly record set in October.
Market leader BetMGM was the key driver, as it increased its daily average revenue by 10.9% and grew its market share to 37.8%. Caesars is also growing fast from a small base. Its share increased from 2.2% in November to 3.3% in December. PointsBet and DraftKings were among the other online casino operators in Michigan to enjoy strong growth during the state’s record month.
These figures include online poker revenue along with slots and table games. If you exclude online poker, Michigan’s revenue for December was $109.7 million, pushing the annual total to just over $1 billion ($1,003,453,757 to be precise).
That is a huge total when you consider that online casinos only got underway in Michigan in late January 2021. By contrast, New Jersey – which had a full 12 months of trading – had online casino revenue of $1,337,005,932 for 2021. Michigan has the potential to overtake it in 2022.
Across the country, BetMGM is the market leader, followed by DraftKings, FanDuel and Golden Nugget. DraftKings has agreed to a $1.56 billion deal to buy Golden Nugget.
Connecticut Claims Fourth Place
Connecticut has quickly established itself as the fourth largest iGaming market in the United States. Only two online casinos are permitted to operate in the Constitution State – DraftKings and FanDuel, which powers the Mohegan Sun online casino – and they combined for $20.3 million in revenue in December.
Online poker has not been launched in Connecticut. It is legal in the state, but the size of the population may deter FanDuel’s parent company, Flutter Entertainment – which owns PokerStars – from launching an online poker room.
Online poker is also legal in West Virginia, but it is not available for the same reasons. Delaware circumnavigated the population issue by approving a compound agreement allowing residents to join an online poker network featuring players from New Jersey and Nevada, where only online poker is legal and not online casino gaming.
West Virginia saw iGaming revenue increase 179% year-on-year to $7.7 million in December. Delaware was the smallest state, with just over $1 million in revenue. A state-controlled lottery has an exclusive on online gaming in Delaware.