U.S. Online Casinos Have Third-Best Month Ever in October

U.S. internet casinos continue to thrive in the just six states in which they are legal. Their continuing successes raise an ongoing question of just why more states haven't welcomed internet casinos. They are, after all, a way to provide citizens the ability to play slots from the comfort of their couch while at the same time generating some impressive tax revenue for state and local coffers. Many states don't have online casinos but already have access to our best sports betting apps.

October revenue figures for iCasinos in New Jersey, Connecticut, Delaware, Pennsylvania, Michigan, and West Virginia are out, and they are once again proof of how lucrative real money online casinos can be, not only for service providers but also for a participating state’s bottom line.

October was the third-best revenue month ever for internet casinos in the American market, topping the $500 million mark and representing an impressive 17.8% year-over-year jump in profits for the American online gambling industry.

October's figures helped the year-to-date total for America's six iCasino jurisdictions eclipse the $5 billion barrier. It is a nice jump from the $4.8 billion in gross revenue generated in 2022.

$533.6 million from October

iCasino revenue for October was $533.6 million for the six participating states. It is the third-best month ever for the industry, just behind the record $542.7 million monthly handle set in September.

It is however, a 17.8% year-over-year increase from the $453.1 million in October 2022.

A whopping $106.8 million in taxes was collected from U.S. iCasino operators in October alone. That number put the year-to-date tax collection to nearly $1 billion, which should have been hit during November's first couple of days. 

So far iCasinos have generated $16.3 billion in revenue for operators and $3.27 billion in tax contributions since they were legalized.

New Jersey is the big winner

iCasinos in New Jersey had their best month ever and propelled the Garden State to the top spot among the six legal online casino states regarding revenues. NJ online casinos generated $166.8 million in revenues last month.

New Jersey has generated nearly $7 billion in lifetime iCasino revenue over its 10-year run and has paid more than $1 billion in taxes since its legalization.

Michigan online casinos came a close second in the race, topping $160 million in monthly revenues for the second straight month. PA online casinos rounded out the Top-3 with $154.8 million in October revenues, their second consecutive month over the $150 million plateau.

The big question

Sports betting is legal in 37 states in America. Sweepstakes casinos, where players bet with coins that can be redeemed for cash, are legal everywhere except Washington state. So why are real money online casinos active in just six states?

There are arguments that the push to legalize online sports betting has taken the focus off the iCasino industry, and others that feel that brick-and-mortar casinos will suffer significantly with the launch of an online platform.

Other arguments against it include the feeling that internet gambling is a more serious form of gambling than sports betting and that competition wouldn't be on a level playing field, with the likes of DraftKings and FanDuel dominating the online wagering space.

Some insiders expect more states to welcome iCasinos as a way to generate more tax revenue. According to Howard Glaser of the internet gambling technology company Light & Wonder, internet gambling “stands out as the most lucrative revenue source from any gaming launch in history, and New Jersey is ‘exhibit A’ for its success.”

Whether or not we see the launch of more iCasino states around America in the coming months and years is still very much an open question. But October’s revenue numbers for the six states already involved in the internet casino industry certainly provide an excellent argument “For.”