Online Betting Revenue Continues to Grow in Both New Jersey and Pennsylvania

When the U.S. Supreme Court ruled in May of 2018 that the nation’s ban on sports betting was unconstitutional, they further said that the issue was a state’s right issue. Immediately, three states jumped at the opportunity to legislate sports betting both online and through online operations. Those three states were Nevada, New Jersey, and Pennsylvania. It’s also noteworthy that all three of these states have also legislated online casino gambling.

As the forerunners of the current U.S. online gambling revolution, all three of the above states get credit for getting things rolling. Four years later, more than 30 states now actively allow residents to bet on sports and or gamble online. Meanwhile, both New Jersey and Pennsylvania are still reporting record numbers related to gambling revenue within their respective states.

Online Casino Gambling Drives New Jersey’s State Gambling Revenue

In June of 2021, the New Jersey Office of the Attorney General reported that 27% of the state’s aggregate gaming revenue (retail and online combined) for that month came from the state’s online casino gamblers. As a testament to the fact that online casino gaming in NJ continues its upward trajectory, the number for June 0f 2022 swelled to 33% of the state’s gaming revenue, which was reported at $133.1 million.

The same growth level is also indicated on an annual basis. In 2021, online casino gambling accounted for 30% of the state’s total gaming revenue, moving up to 33% so far this year. Total Gaming revenue in 2022 as of the end of June was sitting at $2.43 billion.

Pennsylvania Crushes Record for Annual Total Gambling Revenue

For the fiscal year ended June 30, 2022, state gambling watchdog PlayPennsylvania reported that the state of Pennsylvania cracked the $5.0 billion mark in annual gambling revenue across all forms of in-state gambling. That represents an increase of 32% over the $3.8 billion reported for the same period in 2022.

Based on the state’s aggregate gambling revenue sharing programs, more than $2.4 billion goes into the state’s coffers with a small piece of that going to local governments. Note: the state gets 36% of all online slot revenue and 34% of sports betting revenue, one of the highest tax rates in the U.S.
Contributing to the $5.0 billion revenue amount was $510 million coming from sports betting revenue (retail + online) and over $1.0 billion coming from the combined forces of the state’s online casinos and poker rooms.

As for slot play at both the online and retail levels, an astounding $3.6 billion (72%) of the total revenue earned came from all forms of slot play. That should leave very little doubt that PA residents truly enjoy playing slots whether it be in retail casinos or online. That’s unusual because sports betting has been the driving revenue source in most states where both sports betting and casino play is available. Surely, the PA government is also having a love affair with the slot-playing community.