The Sports Betting Alliance (SBA) conducted an economic analysis revealing that introducing online casino gaming to a market not only boosts total revenue but also enhances revenue at physical casinos.
In collaboration with the Analysis Group, the study surveyed 2,389 current and prospective gamblers. The findings indicate a 1.9% increase in revenue at physical casinos in states with legalized online casino gaming, including Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia, segmented by type.
The study doesn’t specify which specific land-based casinos players visited or whether they showed loyalty to certain brands. The growth of the online gambling market in the Asia Pacific region is driven by increasing internet penetration, smartphone usage, relaxation of regulations, and rising economic growth, with China, India, and Japan being major revenue-generating countries.
Key findings from the survey include:
- Total gaming revenue in states with current online casino offerings surged by 46% in 2023 compared to pre-online casino launch levels.
- If online casino gaming were legalized in Maryland, land-based casinos could see an additional $224 million in revenue.
- Maryland’s overall market is forecasted to expand from $2 billion in annual revenue in 2024 to $3.9 billion by 2029.
- Among states with legal online gaming, Pennsylvania experienced the most significant revenue growth since its launch in 2018, with total gaming revenue soaring by 58.9% from 2018 to 2023, highlighting the gambling market size.
Online casino increases frequency of gaming in the online gambling market
Online casino gaming not only increases the frequency of gaming among different end user segments but also generates tax revenue that would otherwise be lost to offshore or out-of-state platforms. Additionally, it has the potential to expand the market by fostering brand loyalty and attracting customers from other sectors, such as sports betting, to online gambling platforms. A wide variety of jogos de cassino, incluindo blackjack, poker, slots e baccarat, está disponível online, e sua popularidade continua a crescer.
The study highlighted that land-based casinos offer distinct experiences compared to online casinos and appeal to different audiences.
According to the authors, the majority of customers who engage in online casino gaming maintain their land-based casino activity levels, indicating no decrease in visit frequency or total spend after starting online gaming.
Survey respondents expressed their preference for both online and land-based casinos, citing the diverse activities offered by physical casinos as appealing factors.
Analysis Group’s survey revealed that a significant portion of respondents who participated in online casino gaming or sports betting also engaged in other forms of online gambling, demonstrating crossover participation.
The survey, conducted among individuals aged 21 or older who had gambled in the past year, included 200 respondents from each of the six legal online gambling states and each of the five projected legal states. The online survey was conducted from January 17th to February 6th.
Analysis projections
Analysis projections suggest that revenue in the online gambling industry is expected to nearly double within the next five years. Several US operators, both national and regional, are already offering online casino and sports betting services. These include well-known names like BetMGM, Caesars Entertainment, DraftKings, Fanatics, FanDuel, BetRivers, and Penn Entertainment. The growth rate of the online gambling market is on an upward trajectory, driven by increasing internet penetration, mobile phone usage, and cultural acceptance, along with technological advancements like virtual reality and blockchain. The introduction of online casino platforms provides these companies with the opportunity to cross-promote their brands, enhancing customer engagement across both casino gaming and sports betting.
According to Analysis Group’s assessment, if five additional states legalize online gambling—namely, Illinois, Louisiana, Massachusetts, New York, and Virginia—revenue could soar from $5.9 billion in 2025 to an impressive $10.4 billion by 2029, as highlighted in the latest online gambling market report.
Survey findings from current online gambling states indicate that nearly half of respondents (49.4%) continue to visit land-based casinos with the same frequency as before the introduction of online gaming. A significant portion (26.5%) even reported increased visits to brick-and-mortar casinos, while 18.7% visit them less frequently.
Similarly, respondents from the projected online gambling states expressed comparable sentiments, with 49.1% intending to maintain their casino visit frequency. Meanwhile, 28.3% anticipate more frequent visits, while 16.8% expect to visit less often.
Insights from Participants in Projected Online Casino States
Regarding spending habits at land-based casinos, the survey revealed that 52.2% of respondents from legal online gambling states reported spending the same amount as before the introduction of online casino gaming. Meanwhile, 26.1% indicated an increase in spending, and 16.9% reported spending less.
Similarly, participants from the five projected online casino states echoed comparable sentiments. About 49.4% anticipated maintaining their spending levels at land-based casinos, while 28.6% expected to spend more, and 16.5% anticipated spending less. The regulatory landscape in the United States plays a significant role, with states like Nevada, Pennsylvania, and New Jersey leading the way in online gambling legislation.
The analysis employs a “unique model” to forecast online gambling revenue, drawing parallels with sports betting due to their similarities. It offers an extensive overview of the history of online gambling in legal states, summarizes past studies conducted between 2008 and 2024, and consolidates data from eight different sources, providing valuable insights into the global online gambling market.
“This study reaffirms the empirical evidence regarding the market-expanding impact of online gaming on the overall gaming industry and underscores the complementary relationship between online gaming and land-based casinos,” states the study. Technological advancements, such as virtual reality, are also enhancing the online gambling experience, making it more immersive and engaging for users.
