According to data gathered by PlayCanada, after the launch of the new iGaming market in Ontario, online casinos will drastically surpass online sports betting. The start of the new chapter in Ontario’s online gambling scene is scheduled for the 11th of April, Monday. Consequently, this will see Ontario will join New Jersey, Michigan, West Virginia, Pennsylvania and Connecticut as the sole regions in North America that legally offer both online casinos, and online sports betting.
Moreover, the data from the analysis shows that in the states where both online casinos and online sports betting are legal, when compared to online sports betting operators, online casinos reported 153% more revenue and a whopping 339% more tax return revenue. Additionally, the data reveals that in general, online sports betting ‘gets more attention. However, according to a lead analyst at PlayCanada, when both are offered legally, “online casino revenue dwarfs” the revenue of online sports betting.
Sports betting gets more attention, but it will be online casinos that deliver truly eye-popping numbers. In the U.S. states where online casino gambling has been legalized and regulated, online casino revenue dwarfs online sports betting revenue.
One example is the report regarding the gross operator revenue, where online casinos in New Jersey, Connecticut, Pennsylvania and West Virginia reported $3.8 billion, while online sports betting providers reported less than half, or $1.5 billion. Moreover, the same goes for local tax revenue, where online sports betting operators raked $222.4 million, while online casinos surpass that number for a total of $976.8 million.
Eric Ramsey, the lead data analyst at PlayNetwork, the “parent” of PlayCanada, states that the reason for the popularity of online casinos lies in the stability they offer. In particular, unlike the unpredictable nature of sports, online casinos offer both more profits, and better stability. Ramsey also went on to note that online casino betting, particularly in the United States, is “consistently growing for years”. And from the looks of it, it definitely has no intention to stop.
Online casinos are not only more profitable than sportsbooks, but they are also less subject to the seasonal ebbs and flows that affect sports betting. In the US, revenue from online casino betting has consistently grown month over month and has done so for years in even the most established markets.
Eric Ramsey – Lead Data Analyst at PlayNetwork
