The six states that conduct legal real money online casino gaming combined to generate a record $590.4 million in gross operator revenue in December, capping a year that saw total gross revenue clear $6 billion and feature year-over-year growth in all six markets.

It was the second straight month revenue reached a record high and easily eclipsed the $557.2 million totaled in November. It was also the fourth consecutive month operator winnings surpassed half a billion dollars, the longest such streak since iGaming launched in late 2013. December revenue was up 22.5% compared to the then-record $482.2 million to close out 2022.

The “Big 3” states of Michigan, New Jersey, and Pennsylvania provided the bulk of the revenue, as all three set respective monthly all-time highs. Michigan and New Jersey became the first states to clear $180 million in revenue, with the Wolverine State taking top honors in December by less than $100,000.

After removing deductions from Michigan and Connecticut‘s gross revenue totals, taxable revenue from the six states totaled $567.4 million. That led to tax receipts totaling $117.8 million, with Pennsylvania coffers claiming the most at nearly $46.5 million.

The $6.17 billion in gross internet casino revenue for 2023 was a 22.9% increase compared to 2022, with the actual dollar difference close to $1.15 billion. That led to $1.23 billion in state taxes, up almost 25% as the full-year total reached $1 billion for the first time.

Pennsylvania hits handle milestone

Pennsylvania is the only “Big 3” state that posts handle figures, and it accounted for the overwhelming majority of the record $7.83 billion in known December handle. The Keystone State accepted more than $6 billion worth of bets for the first time in state history, with overall handle totaling a whopping $63.6 billion for the year.

The 16.2% year-over-year increase in December handle contributed to a record revenue haul of $165.1 million. That was $7.1 million better than November’s short-lived record, with slot revenues accounting for the difference. The $116.9 million in operator winnings from slots was an all-time monthly high and absorbed a roughly $600,000 month-over-month dip in table games revenue to $45.8 million.

Seven of nine Pennsylvania casinos posted year-over-year increases in revenue, which totaled $1.74 billion in 2023 and was up 27.7% from 2022. Harrah’s Philadelphia, which houses Caesars Palace Online Casino, had the biggest increase in percentage at 91.2%, with revenue nearly doubling to $74.3 million.

PENN National’s Hollywood Casino — home to DraftKings, BetMGM, and ESPN BET — had the biggest gain in dollars at $161.2 million as part of its $712.4 million overall kitty of winnings. Hollywood also closed the year with a five-month streak of $60 million or higher in revenue, highlighted by a record $64.9 million in September.

The $490.4 million in state taxes was up $112.2 million compared to 2022.

FanDuel sparks Michigan iGaming surge

Big Decembers are nothing new in Michigan when it comes to internet casino gaming, with the Wolverine State delivering another all-time monthly high to close out the year at $181.4 million. That was up 18.7% from the final month of 2022 and boosted the full-year total to $1.92 billion, an increase of 21.6% compared to the previous year.

FanDuel did what other Detroit-based online casino platforms could not do in 2023 by posting year-over-year gains. The $405.4 million in gross revenue from the MotorCity Casino licensee was up 56.7% versus 2022, while BetMGM was practically flat with a 0.4% decline and a state-leading $586.4 million and Greektown saw a 13.9% downturn with $44.8 million. But the PENN-owned venue had a silver lining to close 2023, as ESPN BET provided a record $6.4 million in revenue in December.

Michigan’s tax coffers had an inflow of $354 million, an increase of $64.8 million. Disbursements among the 12 tribes that offer iGaming in the Wolverine State totaled $43.1 million, up $10.3 million from 2022.

A late changing of the guard in the Garden State

Golden Nugget — home to FanDuel, BetRivers, and Betway — concluded its late 2023 charge to become the top revenue generator in the state with a record haul of $52.8 million in December. That allowed Golden Nugget, the first operator to clear $50 million in monthly winnings, to grab the top spot in the Garden State from the Borgata for full-year numbers at $524.8 million, an increase of close to 40%.

New Jersey’s $180.3 million total for December was tops among all states for adjusted revenue. Its $1.92 billion in AGR for operator revenue came within $115,513 of Michigan’s total for gross revenue. Resorts Digital also crossed the half-billion threshold for 2023, closing out the year with $46.1 million worth of winnings.

Among smaller operators, Bally’s nearly doubled its 2022 revenue total to $82.8 million, while Ocean Casino‘s strong final quarter boosted its year-over-year bottom line to $54.4 million, up 82.6% from 2022. New Jersey state taxes from internet casino gambling totaled $288.5 million in 2023, up $39 million from the previous year.

West Virginia and Delaware notes

DraftKings continued to stake out ground against FanDuel in Connecticut, as the two are the only games in town for internet casino bettors. The pair combined for a record $1.29 billion handle in December, as well as $44.2 million in gross winnings. While both operators had all-time monthly highs in both categories, DraftKings claimed the top spots with $760.2 million in wagers and $24.7 million in revenue.

The final-month surge pushed gaming revenue in the Nutmeg State over $400 million for the year, with the $406.2 million total up 44.7% from the $280.7 million generated in the first full year of iGaming in 2022. Connecticut reaped $60.2 million in state taxes, up $20 million from the previous year, as maximum operator deductions were slashed by five percentage points to 15% beginning in October.

West Virginia wrapped up 2023 with its first $500 million handle in state history, sparking an all-time high of nearly $18.2 million in revenue. That was 16.2% higher than the previous record of $15.6 million set in April and pushed the 2023 total to $156.7 million. Revenue was up 37.5% compared to 2022, slightly outpacing the 34.6% climb in handle to $4.5 billion.

Delaware had the smallest year-over-year gain of the six states, as its $14.1 million in operator revenue was up 3.3% compared to 2022. But with BetRivers taking over the state’s online gaming platform as well as offering mobile sports betting for the first time in state history, the belief is that 2024 will offer more substantial growth.

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