U.S. Online Casinos Smash Quarterly Revenue Marks
August 21, 2020
While retail casinos throughout the U.S. continue to struggle with the reopening process amid COVID19 concerns, the online casino industry is busy smashing quarterly revenue marks. The numbers are in, and U.S. online casinos have earned a startling $402 million collectively for the quarter ended June 20, 2020. This number is nearly three times higher than the revenue mark for the same quarter last year.
It’s noteworthy that the number also crushed the collective revenue mark for any prior quarter reported by the nation’s online bookmakers. That number was $360 million, which came in the quarter ended December 31, 2019.
Keeping in mind that only five states (Nevada, West Virginia, New Jersey, Delaware, and Pennsylvania) allowed legal online casino gambling during this time, it leaves very little doubt that gamblers took their pent up desire to gamble during the Coronavirus lockdown and took it to the internet, the “only game in town.”
All of this happened in stark contrast to the retail casino industry that has seen its revenue marks drop by as much as 80% from the previous year. With retail casinos shuttered and online bookmakers inactive due to the shuttering of major sports leagues throughout the world, online casinos became the only option for the true gambling enthusiast. For some people, it was the only way for them to pass time while dealing with their pandemic issues.
None of this news is going to be lost on states that have been missing out on anticipated gambling tax revenues due to the pandemic. This will surely lead many states to reconsider letting their residents have access to online casinos, a gambling option that is not subject to the same restrictions as gambling businesses that require personal interactions.
This is what Becky Harris, from the International Gaming Institute, had to say in an interview with Business Insider:
"As states rummage for funding, we can expect the interest in iGaming to rise. This new revenue stream could help fund physical and mental health services, benefits for the unemployed or underemployed, state infrastructure programs, or a host of budget items. However, gaming is not the top legislative concern right now."
If nothing else, the pandemic allowed the online casino industry to get the kind of exposure it might not have otherwise gotten under ordinary circumstances. The industry will be looking at the numbers very closely in the coming months.