Total Regulated Online Casino Revenue In US Surges To $825 Million For January

It was a robust start to 2025 for internet casino operators across the nation as the seven regulated states combined for $825 million in gross revenue for January.

Each of the six legacy states reported year-over-year increases of 20% or higher. Rhode Island, which will mark its one-year anniversary with iGaming on Wednesday, surpassed $100 million in total drop for the first time.

Excluding the Ocean State, gross revenue was up 34.3% from the $612.1 million reported for January 2024. Adjusted gross revenue was 34.8% higher at $742 million, with Michigan‘s lesser promotional deductions a factor.

The $156.8 million in tax receipts generated among the seven states represented an increase of nearly $44.8 million from the first month of last year.

The Big 3 continue their roll

Pennsylvania led all states in gross revenue with $265.4 million, while Michigan was the only one of the three linchpin states to set an all-time monthly high in January at $248.2 million.

New Jersey does not release gross revenue figures, but its $221.6 million in taxable operator winnings slotted between the pair. The Wolverine State took top honors in that category at $233.1 million, boosted by a reduction in the percentage of allowable promotional deductions from 10% to 6%. The Keystone State checked in with $210.2 million as all three states enjoyed solid starts to the year.

Pennsylvania had the biggest year-over-year jump in gross winnings at 42.2%, while Michigan was not far behind at 36.4%. The dip in promotional deductions resulted in Michigan having a 42% increase in AGR from January 2024, followed by Pennsylvania (40.5%) and New Jersey (20.9%).

Michigan and Pennsylvania also hit historic benchmarks in January: The Wolverine State cleared $7 billion in gross operator revenue, while Pennsylvania has surpassed $2 billion in state tax revenue from iGaming.

FanDuel rang up $186 million in gross winnings in the three states, topped by its $73.4 million claimed in Pennsylvania. DraftKings and BetMGM were instrumental in a near-$99 million haul for PENN Entertainment licensees in the Keystone State. BetMGM totaled $95.2 million in revenue from Michigan and New Jersey, while DraftKings totaled $86.3 million.

Nutmeg numbers and Mountaineer madness

Record figures were not the exclusive domain of large-market states in January as both Connecticut and West Virginia kicked off 2025 in strong fashion.

Connecticut posted a record gross revenue total for the fourth consecutive month at $54.3 million, up 30.8% from January 2024. Monthly drop also hit an all-time high of $1.6 billion. DraftKings edged FanDuel by $535,000 in winnings with $27.3 million and set a new state standard with $876.1 million wagered.

West Virginia had the biggest year-over-year percentage increase of any state with at least $10 million in iGaming revenue as operators collected $23.1 million in January. That was up 54.6% from 12 months prior as handle surged over 50% and edged above $600 million for the second time in state history.

BetRivers rolls right along in Delaware

The start of BetRivers’ second year as Delaware’s lone internet casino operator was substantially better compared to last year’s launch as both revenue and drop more than doubled. The $9.3 million in gross winnings was a record for the second straight month, while the $240.7 million wagered marked the fifth consecutive month with an all-time high.

Bally’s topped $3 million in revenue for the fourth time in the last five months in Rhode Island, though its $3.2 million claimed was 14.5% off its record haul of $3.7 million to close out last year. The public fared well on the virtual felt in January, holding the house to a 1.7% hold in $43.5 million worth of table games action. The resulting $729,800 in winnings was down 36.6% from December.