Market analysis conducted by PlayCanada has revealed that online casino play will be the big winner in terms of revenue when Ontario’s igaming market opens next Monday.
The research found that whilst sports betting often takes the headlines in legalized states, online casinos drove 153% more operator revenue and 339% more in tax revenue than sports betting last year in US markets where both are legal.
“Sports betting gets more attention, but it will be online casinos that deliver the truly eye-popping numbers,” said Robyn McNeil, lead analyst for PlayCanada.com. “In the US states where online casino gambling has been legalized and regulated, online casino revenue dwarfs online sports betting revenue”.
Ontario will join New Jersey, Pennsylvania, Michigan, West Virginia, and Connecticut to become the sixth region to legalize both sports betting and online casinos. Each of the other five states show that online casinos prove more lucrative for operators and the state.
Across New Jersey, Pennsylvania, West Virginia and Connecticut, online casinos generated $3.8bn in gross operator revenue, whilst online sports betting operators produced $1.5bn.
Furthermore, online casinos produced $976.8m in state and local tax revenue, whilst online sportsbooks produced $222.4m in state and local taxes.
“Online casinos are not only more profitable than sportsbooks, but they are also less subject to the seasonal ebbs and flows that affect sports betting,” added Eric Ramsey, Lead Data Analyst for the Play network of sites that includes PlayCanada.com and PlayOntario.com.
“In the US, revenue from online casino betting has consistently grown month over month, and has done so for years in even the most established markets.”