An overview of the iGaming industry in the United States

Industry and Company Notes

iGaming is currently live in 6 states (Nevada is online poker only), hence the 5 U.S. states PlayUp will focus on are: Delaware, Michigan, Pennsylvania, New Jersey and West Virginia

PlayUp and industry insiders anticipate a flurry of states to legalise iGaming in the coming years.

For PlayUp, iGaming represents an unparalleled growth opportunity in both revenue and total addressable market (being the potential users we target).

PlayUp’s strategic plan focuses on differentiating itself in the marketplace by leveraging its proprietary platform which capitalizes on full integration for all products, including sports betting, DFS, fixed odds and iGaming.

Dr Laila Mintas, PlayUp USA CEO and Director commented:The Sports betting industry is set to become a $40-60 billion industry in the next few years. However, we see iGaming already outperforming Sports Betting growth in the U.S and far exceeding initial industry expectations. The iGaming sector carves a niche and allows us to offer our customers 24/7 coverage and options when sports aren’t being played. Game offerings from content providers create a near endless option of fun, engaging online casino games and higher margins for the business when compared to traditional sports betting. We can also utilize our iGaming offering to attract more females, who are statistically more engaged in casino games than sports betting.

Daniel Simic, PlayUp CEO & Founder said:We have a proven blueprint for what makes a great betting and entertainment business. As the number one daily fantasy sports operator in Australia, having successfully added sports betting and fixed odds to our stable of products, has proven we can make an impact in a highly competitive marketplace. iGaming in the U.S. represents a huge potential for our future growth and diversifies our product portfolio even further.

Below consists of external research that provides an overview and expands on the potential of iGaming.

Potential Growth of Online Gaming:

Vixio Regulatory Intelligence presented their forecast on iGaming:

“Inclusive of iGaming, a market sector which Dashboard users can separately model under their own assumptions, we project the overall U.S. online gambling market to yield annual gross revenue of between $10.8bn and $14.3bn by 2025. 2020 marked the year in which New Jersey and Pennsylvania emerged as true global heavyweights in iGaming, with online casino revenue having soared during the early months of the pandemic before subsequently proving resilient to land-based substitution as casinos reopened in the second half of the year.

Despite comparatively glacial state-by-state regulation to date, the outperformance of online casino versus sports betting in revenue and, more crucially, tax yield terms in New Jersey and Pennsylvania has encouraged an emerging investor theory that states will be more willing to regulate the activity in the post-COVID era.

The huge potential of the U.S. iGaming sector was emphasized by gross online casino and poker revenue reaching $1.5bn in these two Northeastern states alone in 2020, comfortably surpassing online sportsbook revenue of $1.1bn accumulated in 13 states over the same period. With legislation likely in play in over two-dozen states in 2021, the U.S. Sports Betting & iGaming Data Dashboard keeps your finger on the pulse of how the addressable market for each vertical could expand or contract based on the activity in state capitols across the country”.

Goldman Sachs iGaming Forecast: shares Goldman Sachs iGaming and Sports wagering estimates, the investment bank showcases a highly optimistic and bullish forecast for iGaming and sports wagering:

“We expect a combination of favorable legislation and consumer adoption to drive growth in US online sports betting and internet gambling (i-Gaming) from $900 million/$1.5 billion markets today to $39 billion/$14 billion in 2033, equating to 40 percent/27 percent CAGRs for over a decade.”

Currently, only six states, which is 11% of the US population allow iGaming.

Commercial Gaming Revenue Data: cites the American Gaming Associations Commercial Gaming Revenue Tracker:

“Sports betting and iGaming boosted April numbers and helped propel overall gaming revenue past pre-pandemic levels. Nationwide revenue from iGaming reached $299.9 million in April, the first month-over-month decline (-3.6%) since last November.

With the early-April end of March Madness – traditionally the most wagered-on event in the U.S. sports betting calendar – commercial sportsbook revenue dropped 19.3 percent from March, generating $283.4 million. Still, this is more than four times (+441.9%) the national hold in April 2019, with the number of active commercial sports betting jurisdictions more than doubling (from seven to 19) since then.

Combined revenue from sports betting and iGaming accounted for more than 13.1 percent of all U.S. commercial gaming revenue in April, down slightly from 14.8 percent in March, but well above pre-pandemic levels”.

About PlayUp

PlayUp is a next generation entertainment and technology group that enriches the lives of people through entertaining, rewarding and responsible online betting. We develop innovative betting technologies in-house to power our brands and deliver world-class user experiences. Our energies are focused on fulfilling the needs of dedicated and passionate users who seek a deeper connection to the games they play.

PlayUp unifies the world’s favourite online betting products including Fixed Odds Sports Betting, Fixed-Odds Racing (Horses and Greyhounds), Esports and Daily Fantasy Sports (DFS) where we host Australia’s largest and indeed some of the globe’s largest prize pools in competitive peer-to-peer online betting.

We hold online betting licenses in multiple jurisdictions and currently operate in Australia, New Zealand, USA and India.