Online casino betting drove 153% more operator revenue and 339% more in tax revenue than sports betting last year in U.S. markets where both are legal, according to a recent analysis by PlayCanada.com, which tracks the fledgling Canadian gaming market. A similar revenue gap will likely be coming to Ontario, too, as the province prepares to open the market to private online sportsbooks and launch online casino gambling on April 4.
“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 U.S. states where online casino gambling has been legalized and regulated, online casino revenue dwarfs online sports betting revenue.”
Ontario plans to open to private online casino and sportsbook operators on April 4. That will make the province the sixth jurisdiction in Canada and the U.S. to legalize and regulate both online casino gaming and online sports betting, joining New Jersey, Pennsylvania, Michigan, West Virginia, and Connecticut in the United States.
When Ontario does launch, it can expect that online casinos will grab a much larger share in revenue.
In 2021, online casinos in New Jersey, Pennsylvania, Michigan, and West Virginia produced:
-$3.8 billion in gross operator revenue. By contrast, online sports betting operators produced $1.5 billion.
-$976.8 million in state and local tax revenue. Meanwhile, sportsbooks produced $222.4 million in state and local taxes.
The $3.8 billion in casino revenue in 2021 in those four states was more than the $3.6 billion in revenue that all U.S. online sportsbooks generated in the same year. Sports betting was legal in five times as many states last year.
Such a chasm is why operators known best for sports betting, including DraftKings and FanDuel, have joined other major North American brands, such as BetMGM, in investing heavily in their online casino products.
prnewswire.com
