Now that all of the states with online casinos have reported numbers from 2023, it is time to compare all of the markets with iGaming. It was the most profitable year for iGaming in the United States, but there was a shift near the top of the leaderboard.
The state of Michigan recorded 29.4% of the online casino market share in 2023, putting it in second place behind Pennsylvania. This should have been expected as the state seemingly set new handle and revenue marks each month.
Online casinos in the state of Michigan were able to post a gross revenue that was more than 21.6% of what it was in 2022. That will now place lofty goals on the market in 2024, but this is an industry that is expected to grow significantly moving forward.
While the entire market was able to post some positive numbers, most of the action continues to be dominated by just three online casino operators. Those three operators were BetMGM, DraftKings, and FanDuel, and those are also the leaders when it comes to sports betting in the state.
There was a little more than $1.9 million in revenue generated in 2023, and $1.3 billion of that amount came from the three operators listed above.
New Jersey Lurking
Michigan might have finished in second place for the 2023 calendar year, but they will have some work to do in order to stay in that position moving forward. New Jersey also posted a market share of 29.4%, but percentage points put Michigan in the lead.
Both of these markets continue to try and catch up to Pennsylvania, but it doesn’t look as if that is going to be happening anytime soon. The race between Michigan and New Jersey was fun to follow in 2023, and now each state will be looking for an edge moving forward.
One thing that does make this performance from Michigan more impressive is that there are just 15 online casinos in that state. New Jersey ended the year with 29 online casinos available to residents, and they should be bringing in a large revenue number.
Pennsylvania posted a market share of 32.2% in 2023, and that is another state that still has some room to grow. Connecticut was in fourth place with a market share of 6.3%, while Virginia and Delaware combined for just 2.6%.
Commercial Casinos Seeing Success
While the official numbers are not going to be announced until sometime in February, the three commercial casinos in Detroit are off to a big start in 2024. The Anderson Economic Group, LLLC has announced that Detroit could see an economic impact of more than $50 million already in 2024.
The playoff run of the Detroit Lions has brought more traffic to the commercial casinos, and there is going to be another weekend of it. It’s unclear if this will have an impact on online casinos in any form, but that information will also be included in the January report.