Land-based casino business and iGaming may be more complementary than many think.
The Sports Betting Alliance today released the results of a comprehensive study conducted by economists with the Analysis Group, Inc., evaluating casino revenues in six states before and after iGaming legalization.
The 167-page study showed total gaming revenue (both online and land-based) in current iGaming states is on average 46% higher in 2023 than it was before those states legalized iGaming.
The study also projected how total land-based casino gaming revenues may be impacted by potential iGaming legalization in New York, Illinois, Virginia, Maryland, and Louisiana.
iGaming Enhances Overall Casino Revenues
The Analysis Group evaluated revenue figures for New Jersey, Delaware, Pennsylvania, West Virginia, Michigan, and Connecticut pre- and post-iGaming legalization.
According to the study, data was evaluated from each of the six iGaming states and found in five of the six that overall casino revenues were on average 46% higher in 2023 than the year before iGaming was legalized.
For example, Pennsylvania legalized iGaming in 2019 and has seen its combined iGaming and land-based casino revenue market grow to over $5.1 billion from $3.2 billion in 2018.
Here’s the overall revenue data for each of the six states that have legalized iGaming:
- New Jersey: $3.05 billion in 2012 to $4.7 billion in 2023 (+56%)
- Delaware: $521 million in 2012 to $483 million in 2023 (-7.3%)
- Pennsylvania: $3.25 billion in 2018 to $5.17 billion in 2023 (+58.9%)
- West Virginia: $942 million in 2019 to $1.12 billion in 2023 (+19.3%)
- Michigan: $2.97 billion in 2019 to $4.4 billion in 2023 (+47.8%)
- Connecticut: $982 million in 2019 to $1.18 billion in 2023 (+20.1%)
It’s the second study released in 2024 that shows iGaming complements existing retail-casino business, with Eilers & Krejcik publishing a separate report in February demonstrating similar results.
Survey Shows Increased Casino Spending after iGaming Legalization
In addition to the economic evaluation of the six iGaming states, the Analysis Group conducted a survey of 2,389 current and prospective gaming consumers. On average, the majority of respondents who engaged in iGaming indicated they did not decrease their land-based casino gaming activity, including visit frequency and total spend, after iGaming was legalized.
The report shows that each of the five projected states, New York, Illinois, Virginia, Maryland, and Louisiana, could expect to see increased land-based casino activity and revenues after iGaming legalization.
The Analysis Group based their projections on existing land-based growth rate, land-based treatment effects, additional revenue from new casinos in New York and Illinois, and iGaming revenue projections.
In terms of iGaming projections, the study estimated the following:
- New York: $2.5 billion in 2025 increasing to $4.4 billion in 2029
- Illinois: $1.3 billion in 2025 increasing to $2.28 billion in 2029
- Louisiana: $545 million in 2025 increasing to $957 million in 2029
- Maryland: $769 million in 2025 increasing to $1.36 billion in 2029
- Virginia: $745 million in 2025 increasing to $1.3 billion in 2029
In terms of total projected revenues (land-based casino revenue and iGaming) the study estimated the following:
- New York: $6.7 billion in 2025 increasing to $11.2 billion in 2029
- Illinois: $6.2 billion in 2025 increasing to $8.4 billion in 2029
- Louisiana: $4.09 billion in 2025 increasing to $4.75 billion in 2029
- Maryland: $2.88 billion in 2025 increasing to $3.88 billion in 2029
- Virginia: $1.5 billion in 2025 increasing to $2.9 billion in 2029
The study authors noted that consumers see iGaming and land-based gaming as serving two different purposes. Surveyed customers viewed iGaming as a casual, convenient gaming option while trips to a land-based casinos is more of a social experience that includes gaming and other entertainment activities.
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