January US iGaming Revenue Up in Most States
The month of January was good to the American states that offer internet gambling. With few exceptions, both month-on-month and year-on-year revenue numbers were positive in January 2022.
When we wrapped 2021 and examined the growth trajectory for New Jersey, Delaware, Pennsylvania, and Michigan, it showed a positive trend. The beginning of the pandemic granted a huge boost to all online gaming and poker sites in the US market due to lockdowns and land-based casino and poker room closures. Reopenings of those properties brought igaming numbers down a bit, but they all rebounded in 2021, again with few exceptions.
As 2022 begins, there is still no word regarding the expansion of online poker liquidity. Nevada, Delaware, and New Jersey remain the only ones in the multi-state compact, officially called the Multi-State Internet Gaming Agreement. This means that only the WSOP online poker site shares player pools across state lines. Poker players remain hopeful that Pennsylvania and Michigan will join the group. And should Connecticut and West Virginia be included, they are also likely to launch poker sites, as they have legalized them.
Shared online poker liquidity remains the only way to significantly grow the US online poker market.
For now, let’s look at the revenue numbers for January 2022.
Delaware: January 2022
Online table games and online poker dipped from December to January, the former more significantly. However, the constant and mostly reliable growth of video lottery revenue boosted the entire sector. Overall, the numbers were good, and year-on-year revenue was positive on all fronts.
–January 2022 online poker rake & fees: $41,468.25
–December 2021 online poker: $43,069.39
–January 2021 online poker: $39,632.77
Month-on-month: 3.7% decrease
Year-on-year: 46.3% increase
***
–January 2022 igaming revenue: $1,121,345.34
–December 2021 igaming: $1,087,670.56
–January 2020 igaming: $738,525.27
Month-on-month: 3.1% increase
Year-on-year: 51.8% increase
Delaware also provides the number of new registrations each month. This was positive in January as well with 869 of them, up 5.5% from December to January and up 19.4% year-on-year.
Michigan: January 2022
This is the first month that there can be any yearly comparisons. Michigan launched its online casino and poker sites in January of 2021, though not at the beginning of the month. So, January year-on-year numbers will not be a very accurate portrayal of growth, but subsequent months will. As for month-on-month numbers, there was a bit of a drop-off from December to January, but it should only be a temporary setback considering the monthly growth in 2021.
–January 2022 internet gaming gross receipts: $121,243,501.22
–December 2021 igaming: $121,760,592.78
–January 2021 igaming: $29,354,294.98
Month-on-month: 0.4% decrease
Year-on-year: 313% increase
Interestingly, the state tax payment from igaming in January was down 15.3% from December.
Nevada: January 2022
New year, same story. Nevada does not report its online poker revenue. The WSOP online poker site is the only one licensed in the state and chooses not to reveal its revenue.
New Jersey: January 2022
Online poker struggles in New Jersey, but January 2022 could indicate a change in that pattern. The monthly growth rate for online poker was more than double that of other online casino games. It actually contributed to the overall igaming sector growth. The yearly number wasn’t so lucky, but monthly growth could be a positive sign.
–January 2022 internet poker win: $2,557,789
–December 2021 internet poker: $2,337,845
–January 2021 internet poker: $2,774,291
Month-on-month: 9.4% increase
Year-on-year: 6.8% decrease
***
–January 2022 internet gaming win: $137,849,716
–December 2021 internet gaming: $133,212,006
–January 2021 internet gaming: $103,771,312
Month-on-month: 3.5% increase
Year-on-year: 32.8% increase
Overall, the New Jersey gambling sector decreased 5.5% from December to January, but a 10.3% increase year-on-year shows solid growth and rebound from the pandemic.
Pennsylvania: January 2022
It was all good news for Pennsylvania igaming to kick off the new year. Numbers were up across the board. The state’s total gaming revenue was down a bit from December to January, but like New Jersey, the pandemic affected the first month of the year. As restrictions life and Covid-19 cases subsides, monthly numbers are likely to climb going forward.
–January 2022 internet poker revenue: $3,390,093
–December 2021 internet poker: $3,061,945
–January 2021 internet poker: $2,725,600
Month-on-month: 10.7% increase
Year-on-year: 24.4% increase
***
–January 2022 internet gaming revenue: $108,310,642
–December 2021 internet gaming: $102,111,404
–January 2021 internet gaming: $80,413,132
Month-on-month: 6.1% increase
Year-on-year: 34.7% increase
Similar to New Jersey, Pennsylvania saw an overall gambling industry dip from December to January by 3.2%. But for the year, the increase of 26.4% for the whole industry shows a positive comeback overall.
Interstate Debate Update
MI Gaming Review recently reported on Michigan’s progress toward joining the interstate online poker agreement. Progress, however, may not be the most accurate term to describe what is happening.
The article reported that Governor Gretchen Whitmer doesn’t want to sign the agreement but is not entirely opposed to the Michigan Gaming Control Board (MGCB) doing so. And the MGCB is unsure if it is legally able to sign it, according to one source. But an MGCB representative said that it clearly does have the authority to sign it but has suggested “changes based on the requirements of our law.”
According to this report, the New Jersey Division of Gaming Enforcement (DGE) is reviewing the proposed changes, but the regulator would not confirm this.
Obviously, regulators are hesitant to discuss their progress – or lack thereof – on the record. It is not even clear who is in charge of the Multi-State Internet Gaming Agreement and determining its rules. Governors of Nevada, Delaware, and New Jersey signed the agreement initially, but who decides if that responsibility continues to fall into gubernatorial hands or if regulator officials can handle it?
The mystery deepens.
