US iGaming Continues Growth as Online Poker Stalls
The United States internet gaming industry continued its steady growth into 2023. The first quarter statistics show that Michigan, New Jersey, and Pennsylvania all recorded continually increasing revenue for their respective igaming industries. Delaware’s market stumbled a bit this year, on a bit of a roller coaster ride all the way around.
These states, plus Nevada, regulate online poker as well. However, Nevada does not report its revenue at all, and Michigan does not separate online poker from the rest of its online gaming revenue.
From the data distributed by New Jersey, Pennsylvania, and Delaware, we can see that online poker is not much closer to keeping up with the upward trend of the overall igaming industry. Delaware’s poker revenue climbed out of a year-end downswing from 2022 but can’t find its footing yet this year. Pennsylvania is up a bit for the quarter. New Jersey has seen the most significant increase this quarter.
Why, Online Poker, Why?
The notable increase in New Jersey online poker revenue this year, at least in January, can easily be attributed to PokerStars joining its NJ site with its Michigan poker site. This began on January 1 and increased liquidity for the operator. We can’t tell how Michigan’s poker industry improved because, as mentioned, the state doesn’t separate online poker from the rest of igaming.
There are a few reasons that this isn’t the boon for the online poker industry that many people anticipated.
-1. Despite NJ and MI signing the multi-state agreement in spring 2022, PokerStars is the only operator thus far to create player liquidity. Nearly one year later, there has been no word from BetMGM (partypoker) or WSOP (888poker) that they even received preliminary approval to follow PokerStars’ lead.
-2. Pennsylvania did not sign the agreement for reasons that remain unclear.
-3. Connecticut and West Virginia have been able to license online poker for several years, but no operators have applied for licenses. As they are likely waiting for those states to join the multi-state partnership, it is somewhat surprising that neither of them did so in 2022.
-4. Offshore poker sites continue to provide bigger tournament opportunities and more cash game options for poker players online. State-licensed sites cannot yet compete in that regard.
-5. After numerous new states considered igaming bills this year, only one bill remains alive. All of the rest failed to pass their respective state legislatures.
It can be frustrating. There are many pieces to this puzzle that are clearly waiting to be connected, but it hasn’t yet happened. The industry is fragmented, with no organizational body to pull it all together and push it forward.
Delaware Revenue Through Q1 2023
The smallest state in the new US online poker market has been on a roller coaster revenue ride for nearly a year. While igaming is mostly rebounding at the end of the third quarter, online poker continues to fall.
Key online poker numbers
-Total 2022 online poker revenue: $440,956 (up 4.8% year-on-year)
-Total for January 2023: $45,128 (up 12.8% monthly, up 8.8% yearly)
-Total for February 2023: $44,816 (down 0.7% monthly, up 38.8% yearly)
-Total for March 2023: $32,152 (down 28.3% monthly, down 10.8% yearly)
Key igaming numbers
-Total 2022 igaming revenue: $13,630,023 (up 29% year-on-year)
-Total for January 2023: $1,189,863 (up 1.3% monthly, up 6.1% yearly)
-Total for February 2023: $1,123,101 (down 5.6% monthly, up 33.2% yearly)
-Total for March 2023: $1,426,463 (up 27% monthly, up 42.4% yearly)
Michigan Revenue Through Q1 2023
While there is no way to know how online poker revenue is doing in Michigan. Online gaming as a whole, though, is thriving. The industry has been doing well since its start in 2021, consistently growing with only the smallest of inconsistencies along the way.
Key igaming numbers
-Total 2022 igaming revenue: $1,582,454,457 (up 42.1% year-on-year)
-Total for January 2023: $153,694,393 (up 5.7% monthly, up 26.8% yearly)
-Total for February 2023: $148,168,863 (down 3.6% monthly, up 20.7% yearly)
-Total for March 2023: $171,830,721 (up 16% monthly, up 30.5% yearly)
New Jersey Revenue Through Q1 2023
One of the longest states in the state-regulated igaming business, New Jersey saw its total revenue continue to rise…for the most part. Both online poker and total online gaming saw a monthly snag in February of this year, but the overall trend is positive. Total igaming hit a new all-time high in March.
Key online poker numbers
-Total 2022 online poker revenue: $27,384,502 (down 8.5% year-on-year)
-Total for January 2023: $2,710,224 (up 24.8% monthly, up 6% yearly)
-Total for February 2023: $2,283,823 (down 15.7% monthly, up 2.5% yearly)
-Total for March 2023: $2,492,092 (up 9.1% monthly, down 1.5% yearly)
Key igaming numbers
-Total 2022 igaming revenue: $1,662,695,774 (up 21.6% year-on-year)
-Total for January 2023: $152,866,827 (up 0.9% monthly, up 10.9% yearly)
-Total for February 2023: $142,592,966 (down 6.7% monthly, up 9.7% yearly)
-Total for March 2023: $165,711,825 (up 16.2% monthly, up 17.8% yearly)
Pennsylvania Revenue Through Q1 2023
Like New Jersey, Pennsylvania’s overall internet gaming revenue is always on the rise. There are brief exceptions, as in the summer of 2022, but it always recovers and makes up for lost ground. Online poker is another story altogether and most definitely needs the multi-state deal.
Key online poker numbers
-Total 2022 online poker revenue: $33,665,498 (up 3.8% year-on-year)
-Total for January 2023: $2,896,997 (up 10% monthly, down 14.6% yearly)
-Total for February 2023: $2,655,713 (down 18.33% monthly, down 7.8% yearly)
-Total for March 2023: $2,889,710 (up 8.8% monthly, down 10.8% yearly)
Key igaming numbers
-Total 2022 igaming revenue: $1,364,392,468 (up 22.6% year-on-year)
-Total for January 2023: $133,119,361 (down 1.1% monthly, up 22.9% yearly)
-Total for February 2023: $131,625,770 (down 1.1% monthly, up 28.5% yearly)
-Total for March 2023: $148,189,028 (dup 12.6% monthly, up 25.5% yearly)
