Internet Casinos Flourish in Six States, Yet Remain Limited in the US

by Ryan Lee
Internet Casino Adoption

Over the past decade, online casino gambling has been a substantial financial boon in New Jersey, generating close to $7 billion in revenue for casinos and their partners, contributing over $1 billion in taxes to state funds, and providing a lifeline to Atlantic City’s nine casinos during the COVID-19 lockdown.

Despite this success, internet casino gambling remains limited in the US, currently legal in only six states: New Jersey, Connecticut, Delaware, Pennsylvania, Michigan, and West Virginia. Nevada restricts its online offerings to poker, while Rhode Island’s online casino legislation is slated for a 2024 launch.

Several factors contribute to this limited adoption. Key concerns include the misconception that online gambling might cannibalize physical casino revenues and the prioritization of legalizing sports betting, which is predominantly online in many states.

Industry experts foresee a potential increase in states legalizing online casinos, especially as federal pandemic stimulus funds wane and the need for new tax sources becomes more pressing. Howard Glaser from Light & Wonder emphasizes New Jersey as a prime example of the success of internet gambling, predicting a broader adoption in the coming years.

Conversely, Chris Krafcik from Eilers & Krejcik notes that some states may be reluctant, viewing online casinos as a more intense form of gambling compared to sports betting. The dominance of companies like DraftKings and FanDuel, which control a significant portion of the online casino market, also plays a role in this hesitancy.

Krafcik anticipates that only a few states will legalize online casinos by 2027, citing the general difficulty in selling the idea of online casinos.

Indiana exemplifies this challenge, where a bill for online casinos was scrapped amid concerns of negatively impacting physical casinos. State reports predicted a significant loss in tax revenue from traditional casinos and racinos. Lawmakers, however, plan to revisit the issue next year.

New Jersey resident Elaine Vallaster shares her positive experience with online gambling, highlighting the social and entertainment aspects of platforms like BetRivers.com.

The financial impact of online gambling is significant. Since its inception, it has generated $16.3 billion in revenue across states that have legalized it. For instance, New Jersey alone has accrued $6.91 billion in revenue and $1.03 billion in taxes from online gambling since November 2013.

Despite the revenue split with tech platforms, online casinos proved crucial during the pandemic, offering a financial lifeline to physical casinos during shutdowns.

David Rebuck, director of the New Jersey Division of Gaming Enforcement, praises the success and impact of internet gambling, noting its responsible implementation and widespread appeal.

Contrary to initial fears, online gambling has not detracted from physical casino revenues. Jane Bokunewicz from Stockton University and Richard Schwartz from Rush Street Interactive observe that in states with legal internet gambling, revenues from physical casinos have grown, though at a slower rate than their online counterparts.

For further insights and updates, follow journalist Wayne Parry on [Twitter platform] at www.twitter.com/WayneParryAC.

Frequently Asked Questions (FAQs) about Internet Casino Adoption

Why is internet casino gambling not more widespread in the US?

Despite its success in states like New Jersey, internet casino gambling remains limited in the US due to concerns about its impact on physical casinos, a focus on legalizing online sports betting, and the dominance of major online gambling companies. Currently, only six states have legalized it.

How much revenue has internet casino gambling generated in New Jersey?

In New Jersey, internet casino gambling has generated nearly $7 billion in revenue for casinos and affiliates since its inception a decade ago, and over $1 billion in tax revenue for the state.

What are the predictions for the future of online casino gambling in the US?

Experts have varying predictions: some expect a significant increase in states adopting online casinos due to the need for new tax revenue sources, while others foresee only a few more states legalizing it by 2027, viewing it as a more serious form of gambling compared to sports betting.

How has online gambling affected traditional casino revenues?

Contrary to initial concerns, online gambling has not significantly detracted from traditional casino revenues. In most states with legal internet gambling, revenue from physical casinos has grown, albeit at a slower rate than online betting.

What role did internet gambling play during the COVID-19 pandemic?

During the COVID-19 pandemic, internet gambling provided a crucial financial support to physical casinos, especially when they were closed during lockdowns. It was often the only source of revenue for these casinos during the pandemic.

More about Internet Casino Adoption

  • New Jersey’s Online Casino Revenue
  • US Online Gambling Legislation
  • Impact of Internet Casinos on Physical Casinos
  • Online Sports Betting vs. Casino Gambling
  • Online Gambling Trends and Predictions
  • COVID-19 and the Casino Industry

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Lizbeth_K November 24, 2023 - 7:31 pm

Covid really changed the game for these casinos huh, wonder how they’ll do post pandemic.

Jake Miller November 24, 2023 - 8:10 pm

wow, didn’t know online casinos were such big business in NJ, thats crazy money they’re making!

RJ_TechGuru November 24, 2023 - 10:47 pm

Interesting read, but are these revenue figures really sustainable in the long run? seems like a bubble waiting to pop.

Sara89 November 25, 2023 - 4:16 am

isn’t it risky to promote online gambling so much, what about the addiction issues and stuff?

MarkTheShark November 25, 2023 - 4:32 am

Online sports betting is where its at, casinos are just old school now i guess


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