October was one of the best months for iGaming revenue and taxes in recent months with Pennsylvania, Michigan, and New Jersey leading the way in total wagers handled, revenue, and tax generated. Below, we give a breakdown of online casino revenue for October, compare it with historical data, and look at the state taxes this generated.
To give context to the surge of online casino activity in October in the US, we can look at past tax figures for the main states where online casinos are legal:
| State | July Revenue | August Revenue | September Revenue |
|---|---|---|---|
| Connecticut | $6.42 million | $6.82 million | $6.68 million |
| Delaware | $2.96 million | $3.27 million | $3.31 million |
| Michigan | $35.98 million | $36.94 million | $38.12 million |
| New Jersey | $29.40 million | $29.74 million | $31.17 million |
| Pennsylvania | $49.48 million | $53.38 million | $51.13 million |
| West Virginia | $2.27 million | $2.88 million | $2.50 million |
As you can see, New Jersey, Michigan, and Pennsylvania are the powerhouses of the US online casino industry and have the best support, legislation, and variety of casinos that ultimately generate a huge amount of revenue and tax.
To gain an idea of the strength of the iGaming industry in October, we can look at the online casino revenue of the “big 3” gambling states – Michigan, Pennsylvania, and New Jersey.
Michigan online casino revenue grew again in October and it was reported that the state generated $221 million in gross revenue. This is the 3rd time revenue has surpassed the $200 million mark. The $221 million resulted in $56.9 million in taxes which represents a sizable increase from September.
Pennsylvania online casino revenue was also healthy in October as casinos brought in $245 million in gross revenue. This is the 8th time the $200 million mark has been passed in the last 10 months for Penn State. It remains the largest online casino market in the US, and that $245 million generated $83.1 million in tax revenue.
New Jersey online casino revenue for October came in at $213 million which is the 2nd time in a row the $200 million mark has been passed. Despite being the first state to legalize online casinos, New Jersey has fallen slightly behind in terms of total revenue generated, but it is still considered one of the big 3 and generated $37.2 million in tax revenue for October.
These 3 states alone generated a combined gross revenue of $679 million in October which represents a continued increase, and the 5th time in the last year that the $600 million mark has been passed.
It’s expected that online casino revenue and ultimately tax revenue will continue to grow into 2025 and beyond. It’s also doubtful that any other state will overtake New Jersey, Pennsylvania, or Michigan in terms of total revenue and taxes generated – comparatively, they have market dominance and this won’t change until legislation is brought into other states.
Remember that currently, online casinos are only legal in 7 US states so the chance for competition is slim. Hopefully, legislation will improve and fall in-line with sports betting, which is currently legal in 38 US states.
