As sports betting proliferates across the U.S., its legislative successes stand in stark contrast to the six states that have legalized online casino gambling. Despite the lack of access to legal online casino sites, those six states tallied more than $3.7 billion in revenue in 2021. Two months in, and 2022 is on pace to obliterate that number.
After amassing nearly $400 million in January, the abbreviated month of February led to a slight month-over-month reduction in online casino revenue. However, the combined revenue in the six legal online casino states (including online poker where available) still exceeded $385 million.
Furthermore, on a per-day basis, February outperformed January in five of the six states and by a considerable margin overall.
A Missed Opportunity
The six legal online casino states have a combined population of 37.9 million, accounting for just 11.5% of the total U.S. population. Were online casinos legal in all 50 states, the monthly online casino tally in the U.S. would be around $3.5 billion.
Bottom line: You would be hard-pressed to find a better example of the phrase “leaving money on the table” than the unwillingness of states to legalize online casino gambling. Even with a minimal tax of 15%, that works out to $525 million in tax revenue per month – to say nothing of the licensing fees, jobs and other indirect revenues.
A Look Inside the February Numbers
Does New Jersey Have a Ceiling?
New Jersey’s online casino industry is head and shoulders above its peers. The Garden State’s industry is nearly ten years old, yet it continues to post year-over-year gains. The New Jersey online gambling industry has never experienced a Y/Y decline in its entire history. And as the chart below shows, the growth is still substantial.
The question is, how has New Jersey pulled off this feat?