In the second quarter of 2021, revenue from gambling in the US hit $13.6 billion, setting a new industry record. From the states in which gambling is legal, the revenue was up 22%. Based on such figures, it is predicted that the total US gambling revenue for 2021 will surpass $44 billion by the end of the year, making 2021 the highest-grossing year in the history of US gambling. Both in-person gambling and online gambling have contributed to the boom.
US online casinos, which are only legal in six states, set a new record with a revenue of $901 million during the second quarter of 2021, which was an increase of 15% on the first quarter. For the first half of 2021, online casinos have brought in a whopping $1.66 billion in revenue, which surpassed the $1.55 billion figure of online casino revenue for the whole of 2020. Let us take a closer look at the current boom of online casinos in the US.
Which states have seen the most revenue from online casinos?
Out of the six states in which online casinos are legal, New Jersey and Pennsylvania are leading the way in terms of revenue. Based on their revenue from the first seven months of 2021, both states are set to clear $1 billion in annual revenue by the end of the year. Michigan is also expected to come close to the $1 billion figure. In July alone, Michigan online casinos had total revenue of $518.6 million.
If you live in a state where online casinos are legal, it can be more challenging than you think to find the right casino for you. For instance, you may need one that uses Spanish rather than English, in which case you would need to search for the best US online casinos for Hispanic players. A list of the best online casinos in the US can be found here. Compare the different sites for things like language options, security, payment options, game range, and bonuses and promotions to find the best one for your requirements.
Which states are collecting the most tax through online casino revenue?
Large revenues do not only benefit the online casino operators. They also provide taxes for states to use to help local communities. Out of the six states where online casinos are legal, Pennsylvania has collected the most tax revenue by far this year. It is set to clear $445 million by the end of 2021. In comparison, Michigan and New Jersey look set to collect a little under $200 million in online casino revenue taxes in 2021.
Why are online casinos becoming so popular?
Online casinos were booming in 2020 and have continued to increase in popularity throughout 2021, leading to record-breaking revenues. The top reason for this boom is down to the Covid-19 pandemic. Land-based casinos were closed and people were locked down at home, which meant people started spending more time playing games at online casinos and spending more time online generally. Due to those reasons, you may think that online casino revenue will fall in the coming years, as normality returns and people rub shoulders at brick-and-mortar casinos once again. But in actuality, the popularity of online casinos has been increasing for years, and as they become more sophisticated and offer a wider range of games and options, it looks pretty certain that online casino revenue will continue to grow.
Tech is helping too. For instance, online live casinos have only been possible for the last few years but they are already becoming one of the most popular ways for people to play their favourite casino games. At a live casino, you play games like poker, blackjack, or roulette in real-time with a human dealer. You can even interact with the dealer and the other players, making the experience very similar to a real-world casino visit. As online casinos become more technologically advanced, such as using virtual reality and artificial intelligence, they are sure to become even more popular.
Another key reason why online casinos have seen such phenomenal growth in recent years is down to the smartphone. It has only been in recent years that people have been able to play casino games on their phones. Now it is possible, it means people can play games anytime and anywhere, and many people do exactly that.