US Online Casinos Hit $6.5B Revenue in 2023, Pennsylvania Records First $200M Month

Quick Intro

In 2023, US online casinos across six states collectively amassed $6.53 billion in revenue, slightly surpassing the $6.5 billion prediction I made last year for Sweepscasinosusa. This figure exceeded the forecast by a notable 1.1%, a positive sign for the industry’s growth.

Throughout 2023, the market’s trajectory varied considerably. The first half saw many states falling short of expected figures, especially in Q1. The anticipated slowdown in growth during the latter half of the year did occur, but it was more gradual and less pronounced than expected.

By autumn, the industry had caught up and even exceeded the projected numbers, particularly in the final quarter. States like Pennsylvania, New Jersey, and Connecticut surpassed expectations, with Connecticut notably outperforming by almost 10%. Michigan and West Virginia fell slightly below predictions, and Delaware was the only state that significantly underperformed, though changes in suppliers could lead to improvements in 2024.

Pennsylvania Surpasses $200 Million Benchmark

Connecticut’s performance in 2023 was exceptional, outperforming projections by nearly 10%. As a newer market, the lack of historical data likely contributed to this discrepancy.

Pennsylvania’s growth in the latter half of 2023 was particularly impressive. The state’s total annual revenue slightly exceeded forecasts at $2.11 billion. From August to December, Pennsylvania consistently outperformed projections by 4.3% to 9.9%, making it the first state to cross the $2 billion annual revenue mark.

Pennsylvania’s growth remained robust throughout the year, with the rate only slightly decreasing from its start at 23.3% to 22.4% by year-end. This strong performance led to Pennsylvania achieving over $200 million in monthly revenue in December, a milestone earlier than anticipated.

Breakdown of Online Gambling Revenue in December 2023

  • New Jersey: Online casinos in New Jersey earned $180.3 million in December, marking a 19.1% year-over-year increase and ending the year strongly.
  • Michigan: Michigan’s online gambling sites garnered $181.4 million in December, exceeding projections slightly but lagging behind Pennsylvania and New Jersey in growth.
  • Connecticut: The state’s online casinos brought in $44.2 million in December, contributing to an impressive annual growth rate and exceeding forecasts.
  • West Virginia: West Virginia maintained a steady growth rate, ending the year with $157.4 million in revenue, slightly below projections.
  • Delaware: The state’s online casinos, under lottery monopoly, generated $1.16 million in December, falling short of projections. However, with BetRivers taking over in 2024, there’s potential for revenue improvement.

Overview of Market Growth and Projections for 2024

The overall performance of US online casinos in 2023 reflects a dynamic and growing market, with states like Pennsylvania and Connecticut leading the way in surpassing revenue expectations. The upcoming year holds potential for further growth, especially with new operators and technological advancements in states like Delaware.

Final Thoughts

The success of the US online casino market in 2023, particularly in states like Pennsylvania and Connecticut, demonstrates the industry’s resilience and potential for continued growth. The surpassing of revenue forecasts and milestones sets a positive tone for the industry’s future in 2024 and beyond.