Industry News of the Day for May 17, 2024

By iDEA | May 17, 2024

Industry News

  • PlayUSA: US iGaming Grossed All-Time High Of $1.98 Billion During First Quarter Of 2024
    • US commercial gaming revenue is off to a hot start in 2024. While all sectors increased year-over-year in the first quarter, iGaming led the way with an all-time high Gross Gaming Revenue (GGR) of $1.98 billion, according to the American Gaming Association (AGA). All six states that started the year offering iGaming saw an increase in GGR during the first three months. On top of the increases, Rhode Island began offering iGaming during the first quarter.

Florida

  • Legal Sports Report: Feds Respond With Potential Florida Sports Betting SCOTUS Hearing Looming
    • The Department of the Interior responded on Monday to West Flagler Associates’ writ petition before the US Supreme Court regarding the legality of Florida sports betting.  Gaming legal expert John Holden told LSR that the odds the Supreme Court elects to hear the case “remain very low.”  The Supreme Court is expected to make its decision on whether to proceed in late June. If it does proceed, the Florida sports betting case would be decided some time in 2025.

Illinois

  • The State Journal-Register: The Unintended Consequences Of Raising Sports Betting Taxes In Illinois
    • Jeff Ifrah, founder and general counsel for iDEA Growth, penned an opinion on the proposed tax hike on sports betting in Illinois. Ifrah writes, “The dramatic tax increase will have unintended consequences, driving customers back to illegal betting channels and hurting local businesses. Raising the tax rate on sports betting is akin to subsidizing the illegal, offshore sportsbooks that Illinois state lawmakers sought to eliminate when they legalized and regulated sports betting. Given that legal sportsbooks operate on thin margins, they cannot simply absorb this massive tax increase.”
  • SportsHandle: Illinois Sportsbooks Collect Nearly $100 Million In March Revenue
    • The Illinois Gaming Board reported $99.4 million in adjusted gross sports betting revenue for March on Wednesday afternoon, as sportsbooks narrowly missed a nine-figure haul for the fifth time in state history. Revenue was up only 2.3% compared to last March despite a 17.9% surge in the traditional handle to $1.26 billion. The 7.9% hold this year was 1.2 percentage points lower, leaving operator winnings $580,000 shy of $100 million.

Massachusetts

  • Gaming Today: Betting Revenue Dips In Massachusetts Despite Increased Wagers
    • Despite a rise in player spending, the Massachusetts Gaming Commission reported sports betting revenue in April was $49.1 million, a 16.6% decrease from the same month last year. However, retail betting took a hit, incurring a loss of $256,593, which dragged down the total revenue. When it comes to spending, sports bettors in Massachusetts wagered a total of $603.3 million. This amount is 4.1% higher than the same period last year but falls 6.1% short of the $642.3 million wagered in March, Out of the total wagers, $591.5 million came from online bets, while retail sportsbooks accounted for $11.7 million.

New Jersey

  • PlayNJ: New Jersey Online Casinos Narrowly Miss All-Time Record In April
    • According to data published by the NJ Division of Gaming Enforcement, internet casino operators in NJ generated just under $187.9 million in revenue last month, representing an 18.2% year-over-year increase. April’s returns fell short of March’s record-setting $197.2 million, but are still good enough for the second-highest monthly total in the state’s 10-year-plus history of legal online casinos. Through the first four months of 2024, iGaming has generated over $750.7 million in revenue, putting the market segment 21.2% ahead of last year’s pace.
  • SBC Americas: Prophet Exchange To Shut Down New Jersey Operations
    • Sportsbook exchange Prophet Exchange will end its operations in New Jersey as of May 28 but intends to continue in other states, according to the company’s co-founder and COO. The state’s most recent financials show that the company took a shade over $244,0090 in gross revenue from online sports betting in April 2024 through its partnership with Harrah’s Atlantic City. That was up from $81,000 in February. Year-to-date GGR stands at around $291,000. It’s uncertain where Prophet Exchange will look next for expansion. Benzaquen stressed the company will remain an exchange.

Pennsylvania

  • PlayPennsylvania: Online Casinos Top $200 Million In Revenue For Third Straight Month
    • Pennsylvania online casino operators had another solid month in April, but came considerably short of March’s all-time revenue record. The Pennsylvania Gaming Control Board reported that operators produced $212.2 million in gross online casino earnings last month. While PA online casino revenue experienced a 9% month-over-month decrease from the March record of $233 million, operators have still been on fire as of late. It’s the third straight month of earnings exceeding $200 million, and the fourth time in five months. Revenue also increased 27% from April 2023.
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