In recent months, Igaming has experienced incredible boom in New Jersey and Pennsylvania. This has allowed the two states to offset some revenue losses caused by COVID 19. Nevertheless, the pandemic and chaos it leaves in the income of land casinos and sports bets are expensive.
A brief state of play
In New Jersey, in particular, revenues from real casinos dropped 61.7% in March. In all, on the nine approved sites of the state, at Atlantic City, recorded revenues barely reach $ 85.5 million. It is the same for the Pennsylvania that recorded a general loss of 61% in March. The 12 accredited casinos thereafter reported only $ 120.7 million, table games and underweight machines. The propagation of the coronavirus pushed the two states to issue closing orders for their casinos. However, in Pennsylvania, six casinos had already voluntarily closed their establishment even before the mandatory closure imposed on March 17. In the same period, the New Jersey State adopts a similar approach. However, this has not changed much because even before their official closure, the attendance rate of casinos had already dropped. This can be explained by the fact that the majority of people stayed away from casinos and public gatherings. The fear of contracting the coronavirus was right for the greatest players.
COVID19 causes closures and suspensions of major sporting events at all levels
In Pennsylvania, sports bets are poorly conducted by the pandemic. Indeed, there is a drop of nearly $ 200 million just for the month of March. In addition, only $ 131.3 million from Paris were taken. However, the state of Keystone is an exception to the rule and records in March an increase in taxable income. This has, among other things, allowed $ 6.9 million of gains. In New Jersey, sports betting figures have barely the $ 181.9 million for March. Basically, this is equivalent to a significant decrease of 52% compared to the previous year. In terms of income, it is 58.4% less compared to the same period for 2019. The gains observed only amount to $ 13.2 million, Paris sports and mobile applications. These numbers come to confirm all the more economic drought that the pandemic is leaving.
Fortunately for these states, online games have more positive results. In New Jersey, in March, an increase of 65.6% on online gaming revenues is recorded. In other words, it's $ 25.1 million for licensed mobile applications that month. Exercise 2022 is rather promising, with $ 171.9 million in product for igaming applications. Online casinos, in particular, have reduced $ 9.7 million. In other words, it's $ 3.6 million more compared to 2019. Nevertheless, online taxes do not cover the deficits found. For sports betting and retail casinos, taxes fell by $ 11.8 million over one year. On the side of Pennsylvania, where Igaming barely begins, $ 24.3 million of revenues were recorded. It is not nothing, because it equates to $ 8.6 million in state taxes and local communities. Nevertheless, for slot machines and table games, the drop in tax revenue is too noticeable. In numbers, it is $ 67.5 million in relation to March 2019.
Promising online growth despite everything
Although recipes do not cover the deficit, the igaming is changing rapidly in the right direction. This, despite the fact that New Jersey and Pennsylvania still have millions of tax revenue to account for. Indeed, COVID19, still virulent, should maintain closed land casinos. Which can only strengthen the strength position of Igaming. In addition, the results of the latter will be felt faster. As proof, 4 weeks after closing land casinos, "Online" gaming income increased by about 200%. This is for example the case of fan duel, the online casino of Flutter Entertainment, which recorded a growth of 260% from January to March. The advantage of New Jersey and Pennsylvania is that fan duel represents a quarter of their market shares. For informative purposes, both states have more than thirty casino and online poker applications.