The last year and a half of gambling revenue in America – and well beyond, undoubtedly – has been a roller coaster of record highs and surprising dips. The coronavirus pandemic started that roller coaster in March 2020, and numerous factors have thrown wrenches in front of it at every opportunity.
Land-based casinos saw the most tumult in the past 1.5 years, when they went from complete lockdowns to partial reopenings, from limited capacity to slot machine distancing, and from mask mandates to confusion. Even now, casinos aren’t sure what to do with the recent surge of a new Covid-19 variant. And patrons are even more unsure of how to be a casino consumer in this day and age, if they should do so at all.
Online gaming revenue provided some relief, especially in the first half of 2020, to the states that have legalized it and licensed sites to operate. Since then, though, the revenue from online slots, casino games, and poker have been difficult to predict. In June 2021, all four states that provide igaming revenue figures saw month-on-moth decreases, a very unusual occurrence.
To get some idea of how the pandemic changed things in the still-burgeoning US online gambling world, let’s look at the first half of each of the past few years.
Delaware iPoker and iGaming
The small igaming business in Delaware began in November 2013, starting strong, then dropping steadily before hitting near-high during the pandemic year. The first full H1 came in 2014. As for poker only, these are the H1 figures since then:
-2014 online poker H1: $404,694.72-2015 online poker H1: $224,330.95 (down 80.4%)-2016 online poker H1: $203,874.30 (down 10%)-2017 online poker H1: $120,558.16 (down 69.1%)-2018 online poker H1: $121,291.84 (up 0.6%)-2019 online poker H1: $141,839.78 (up 14.5%)-2020 online poker H1: $355,589.87 (up 60.1%)-2021 online poker H1: $221,010.87 (down 60.9%)
The entire Delaware igaming market includes video lottery, online table games, and the aforementioned online poker. Those numbers since 2014 are:
Clearly, the totality of igaming followed a different path through the years. Even in 2021, while online poker fell from the pandemic growth, online gaming as a whole grew even more. The swings in Delaware are unlike any other state in the market thus far.
Michigan iGaming
This is the first year of igaming in Michigan. The first online casino and poker sites launched at various points in January 2021. While there are no years to compare, it is important to show the first half of Michigan’s first year for future reference and to put up against the revenue of other states.
-2021 igaming H1: $483,082.686.49
Note that Michigan has yet to break out online poker from other igaming like slots and table games, so there is no way to know the role of poker in the industry yet.
Nevada iPoker
The state of Nevada only offers online poker – no other online casino games. It also has only one operator and has for most of its existence. This means that the site does not have to publicly report its revenue, so it doesn’t.
New Jersey iPoker and iGaming
The first online poker and casino sites launched in late 2013, so the first half-year reports didn’t start for this sector until 2014. And online poker wasn’t separated from other igaming in monthly reports until later in 2014, but the breakouts did occur anyway. The numbers from 2014 are:
-2014 online poker H1: $16,675,715-2015 online poker H1: $12,321,681 (down 26.1%)-2016 online poker H1: $13,734,234 (up 11.5%) -2017 online poker H1: $12,585,723 (down 8.4%) -2018 online poker H1: $11,138,986 (down 11.5%) -2019 online poker H1: $10,833,164 (down 2.7%) -2020 online poker H1: $20,460,106 (up 88.9%) -2021 online poker H1: $14,948,908 (down 26.9%)
Internet gaming in New Jersey includes online poker and table games, as well as online slots:
New Jersey set the standard for igaming growth, mostly propelled by non-poker games. Online poker struggled through the years, with the most significant jump happening during the pandemic. Those gains began to fall quickly in 2021, though, while the igaming industry as a whole continues to climb.
Pennsylvania iPoker and iGaming
The first online casino sites launched in mid-2019, and the first online poker site welcomed Pennsylvania players in November 2019. Even then, it was only PokerStars open for online poker until 2021.
-2020 online poker H1: $20,211,280 -2021 online poker H1: $15,040,686 (down 34.4%)
Internet gaming in New Jersey includes online poker and table games, as well as online slots:
The year-on-year gains for Pennsylvania were unique. The action during the pandemic was still reflective of the igaming market’s first year in the state. Thus, the post-pandemic growth is still experiencing its initial growth spurt. The goal is to keep it on that trajectory going forward.
Predictions and Possibilities
The igaming industry in the US is set for growth. Michigan is the newest one in the business, though West Virginia did launch its online casinos in 2021. With that said, West Virginia may not launch any online poker until 2022.
Connecticut legalized igaming in 2021, and it could launch some online casinos and poker sites in 2022 if it moves along at a pace similar to that of Michigan.
The biggest mover for online poker in the US will be a bigger multi-state poker network. Currently, only Nevada, Delaware, and New Jersey are able to share poker sites, and the WSOP is the only one available in all three states. There has been much talk of signing other states – Michigan, Pennsylvania, and West Virginia – but all governors must agree. They’ve been a little busy with pandemic business lately.
Should that interstate agreement move forward, though, next year – 2022 – could be a banner year for online poker and show its true potential.
