Online Gambling Establishments in the United States Generate $898.1 Million in Earnings
The U.S. online casino market has seen a significant surge in revenue in 2025, with Pennsylvania, Michigan, and New Jersey emerging as the top-performing states, often referred to as the "revenue triad" of the industry.
Pennsylvania, the leading state, has generated over $1.02 billion in tax revenue from online casino operations over the past twelve months through January 2025. This impressive figure is attributed to high tax rates, with a 54% tax on slot machine games and 16% on poker and non-peer-to-peer table games. In May 2025 alone, Pennsylvania recorded a nearly 35% increase in revenue, bringing in $289 million.
Michigan follows closely behind with approximately $666.2 million in tax revenue in the same period, supported by a graduated tax rate that goes up to 28% for larger operators. The state's online casino gross revenue in May 2025 was just under $252 million, marking a 27% increase year-over-year. Michigan taxes about 94% of gross revenues for most operators.
New Jersey, with a relatively modest effective tax rate of 17.5%, generated about $436.8 million in tax revenue in the last twelve months through January 2025. In May 2025, New Jersey’s gross iCasino revenue was nearly $247 million, a 28.5% increase year-over-year. FanDuel Casino set monthly revenue records during this period.
Other notable states include Connecticut, with $87.5 million in tax revenue and a record $61.3 million in gross revenue in May 2025, showing over 32% growth year-over-year. West Virginia collected $41.2 million in tax revenue and recorded over $34 million in gross revenue in May 2025, a 104% year-over-year increase. Delaware and Rhode Island follow with lower tax revenues but significant growth in gross revenue and player activity.
In total, the seven states where online casino games are played generated a combined gross revenue of $898.1 million in the specified timeframe, marking a 33.1% increase from May 2024's revenue of $674.9 million. FanDuel Casino was the second-highest-earning operator in Michigan with $61.9 million, while BetMGM topped the charts in Michigan with $63.3 million in revenue.
The online casino market in the U.S. continues to grow, with Pennsylvania, Michigan, and New Jersey leading the way in revenue generation and tax collection. The robust growth trends seen in these states indicate a promising future for the industry.
Online casino revenue from poker games in Pennsylvania slightly boosted the state's income, given the 16% tax rate on these games. In comparison, Michigan and New Jersey, while thriving in the online casino market, do not specifically mention poker as a significant contributor to their revenue, focusing more on slot machine games and table games. The sports sector, not addressed in the text, remains an untapped potential for revenue growth in the online casino market of these states.
