US Online Casino Revenue 2021

Legal online casino gaming hit unprecedented heights in the US in 2020. The industry entered 2021 with the potential to exceed the record-setting revenues of 2020 by the end of the year.

A new major market joined the US online casino industry early in the year, as Michigan debuted online casinos in January 2021. Michigan appears set to contend as one of the nation’s top mobile gaming markets right out of the gate.

As of April 2021, five US states offer legal online casino gaming. New Jersey, Pennsylvania, Michigan, West Virginia, and Delaware stand at the forefront of the US mobile casino industry, and the success of those markets could prompt other states to launch online casinos in the future.

US Online Casino Revenue March 2021

New Jersey broke the US record for monthly online casino revenue in March. Mobile casino apps brought in $113,669,187 in March revenue, eclipsing the previous all-time high of $103.7 million set by New Jersey in January 2021.

Pennsylvania hit a new monthly milestone as well, as the Keystone State’s online casinos drew $97,689,743 in revenue for March. Pennsylvania is on the brink of the first $100 million revenue month in state history, and on pace to clear $1 billion in annual revenue by the end of the year.

Michigan’s newly launched iGaming industry continues to exceed all expectations. Michigan’s online casinos produced $88,711,907 in monthly revenue.

The March numbers for Michigan come just weeks after the Jan. 22 launch of online casinos in the state. Michigan’s top-earning online casios include BetMGM, FanDuel Casino, and DraftKings Casino so far.

March 2021 Online Casino State Tax Revenue

Pennsylvania taxes online casino revenue at the highest rate of any state in the market. Online slots are taxed at 54%, while a 16% tax is applied to table games and poker. Pennsylvania’s tax toward online slots revenue puts the Keystone State in the top spot on this table virtually every month.

New Jersey applies a 15% tax on all forms of mobile casino revenue. Michigan uses a tiered tax system that levies a 20-28% tax on mobile casino revenue based on earnings. West Virginia applies a 15% tax to mobile casino revenue.

Note that the data above applies to online casino gaming only. All four of the states listed here also offer mobile sports betting, but each state applies separate and different tax rates on sports betting revenue.

2021 Aggregate Online Casino Revenue

Through the first quarter of 2021, both New Jersey and Pennsylvania are on pace to clear $1 billion in annual online casino revenue by the end of the year. New Jersey nearly hit that mark in 2020 ($970.3 million in revenue), but 2021 could see at least two states enter nine-figure territory in online casino revenue.

Michigan could hit the $1 billion mark in its first year of operations as well. The Great Lakes State saw its online casinos produce $88.7 million in March revenue. If that pace persists for the rest of 2021, Michigan will come very close to seeing a $1 billion revenue year.

2021 Aggregate Online Casino State Tax Revenue

Pennsylvania sets the bar in the realm of state tax collection on mobile casino revenue. The high tax rates haven’t deterred the industry’s top casino brands from setting up shop in the Keystone State, however.

As a result, Pennsylvania stands as one of the biggest winners in the mobile gaming boom of the 2020s.

2020 Online Casino Revenue And State Tax Collected

*Based on available tax revenue information

New Jersey represents the biggest online casino market in the US, but offered the most operator-friendly tax rate on iGaming revenue among the four states with online casino gaming in 2020.

The Garden State applies a 15% tax toward all online casino revenue, and iGaming contributed $145,746,125 in state tax collection in 2020. New Jersey iGaming revenue nearly topped the $1 billion mark in 2020, and projects to clear that annual revenue milestone in 2021.

Pennsylvania levies a 54% tax toward online slot revenue and a 16% tax on poker and table games. Despite that heavy tax on slots, many of the world’s biggest online casino brands offer iGaming products in Pennsylvania.

Online casinos in Pennsylvania generated more than $565 million in revenue last year, allowing the state to collect just under $234 million in iGaming taxes.

West Virginia and Delaware function as significantly smaller iGaming markets when compared to New Jersey and Pennsylvania. West Virginia debuted online casinos in July 2020, and by the end of the year surpassed Delaware in annual revenue.

2020 Aggregate Online Casino Revenue

Both New Jersey and Pennsylvania realized an online casino revenue surge after COVID-19 considerations shuttered land-based casinos across the country in March. Retail casinos in both states resumed business at limited capacity by summertime, but that didn’t slow the mobile sports betting boom in either state.

December marked periods of record-high monthly online casino revenues in both states. New Hersey nearly hit the $100 million monthly revenue mark in the final month of 2020, while Pennsylvania eclipsed the $70 million threshold for the first time.

West Virginia also ended the year with the best month yet in the short history of the state’s mobile casino industry. With Michigan and possibly other states launching online casinos next year, 2021 projects as an even bigger year than 2020 for the US legal online casino industry.

About the Author

Geoff Fisk

Geoff Fisk is a San Diego-based writer, specializing in the poker and gambling industries. He’s written for numerous platforms and has traveled the globe as a live poker tournament reporter. Geoff’s interests include the legal online poker industry in the U.S. and abroad.