The Sports Betting Alliance on Thursday released the results of a study conducted by economists in its analysis group that showed land-based casino revenue growth increased by nearly 2 percentage points in states where Internet casino games are now available.
The study also noted that among the six states where Internet casino games were available before Rhode Island launched earlier this month, total gaming revenue increased by an average of 46%. Since adding internet casino games to its suite in 2018, Pennsylvania had the highest increase of $5.18 billion, or 58.9%. New Jersey was second with $4.77 billion for the 11 years starting in 2012, with 56.1%, and Michigan was third with 47.8%. 4.4 billion since 2019.
Analysis Group’s research also included a survey of approximately 2,400 people asking about their preferences for Internet casino games and retail casino games. The survey found that the majority of respondents in the six states where iGaming is available did not reduce their retail casino wagers after they began playing Internet casino games, both in terms of frequency of visits and spending; people report an increase in the number of visits to land-based casinos.After my first experience with a digital internet casino, I often
The study also focuses on five states that have bills to add Internet casino games: Maryland, New York, Illinois, Louisiana, and Virginia. For Maryland, the analysis group predicted that land-based casino revenues would increase by $224 million, part of a 91% increase in revenue to $3.9 billion by 2029.
This is the second study in recent months touting the potential of Internet casino games as a revenue driver for brick-and-mortar stores. Ailers & Krejick Gaming released a study commissioned by IDEA Growth in February that found fears of casino cannibalization by internet casino games are unfounded and that the introduction of mobile casino apps increased casino revenue by 2.44% per quarter. suggested that he did.
Check out the states that have internet casino games
Analysis Group’s methodology used an interrupted time series (ITS) approach to estimate changes in total revenue associated with Internet casino games. We predicted the compound annual growth rate (CAGR) before each state introduced online casinos and compared their CAGR after the introduction.
This method has drawbacks, including the inability to separate out differences between sectors and the inability to separate “the effects of iGaming adoption from the long-term effects of economic or other growth in the casino market.”
What the six states had in common was a lack of significant growth in land-based casino revenues. Revenues in three states were on the decline, and none increased by less than 1% annually.
Internet gaming in New Jersey had the largest impact with a positive swing of 12.2 percentage points, with iGaming driving a 4.1% CAGR increase from 2012 to 2023, compared to the CAGR for Atlantic City venues from 2009 to 2012. decreased by -8.1%.
Michigan has increased 10 points to 10.3% from 2019, while Pennsylvania has improved its CAGR by 9.1 points to 9.7% since launching internet casino gaming in July 2019. Delaware was the only state that continued to have negative revenues. However, the survey showed that the rate of decline in online casino ratings slowed from 3.2% to 0.7%. It’s also the only state where iGaming is run by a single operator, with the First State switching from 888 Holdings to BetRivers at the beginning of the year.
Examine the survey results
When we compared the states where Internet casino games exist and the five states we surveyed that have bills to legalize them, we found that in all five states, a sizable majority of respondents said they would support Internet casino games even if they were legal. It was shown that the frequency of visits would not be reduced if The average of 77.4% of the five states that said they either plan to visit more frequently or will continue to do so is 77.4%.
Of these, 28.3% said they would go more often, with the highest percentage in New York (31.7%) and the lowest in Illinois (23.3%). Maryland had the highest percentage of people who said they would go to casinos less often at 22.7%, and was the only state where more than 1 in 5 people said they would go to casinos less often.
When it comes to spending at land-based casinos, respondents in states expected to legalize rated the increase slightly higher at 28.6% compared to 26.1% in states where it is already available. This time, Virginia topped the five predicted states with her 31%, followed closely by New York with her 30.5%.
Respondents in Maryland lead the group most likely to reduce spending at land-based casinos at 22.7%, especially above states with Internet casino gaming at 16.9% and the five-state average of 16.5%. % is much higher.
States that can legalize are expected to see an increase in revenue.
The five states considering legalizing iGaming are expected to have total revenue over the five-year period from 2025 to 2029, ranging from $3.88 billion in Louisiana to $18.06 billion in New York. . In four of the five states, his five-year Internet casino annual revenue averaged $1 billion, with New York’s $3.6 billion compared to the next closest state, Illinois’ 18 That’s nearly double the $60 million total.
Meanwhile, land-based casino revenue growth estimates ranged from 1.7% in Louisiana to 20.4% in Virginia, with an overall average of 6.6%. With only three casinos currently operating in Virginia, the analysis group’s study also noted linear growth in video gaming terminal (VGT) revenue in Illinois and land-based casinos. Note that VGT is expected to increase its revenue by an average of $1.07 billion. Every year.
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