The online gaming industry in the United States continues to gain momentum, with Rhode Island being one of the latest states to embrace regulated online casinos. The Rhode Island Lottery recently reported that the state’s online casinos generated a net gaming revenue (NGR) of $2.25 million in May 2024. This marked an 8.4 percent increase from the $2.08 million recorded in April 2024, which was only the second full month since the launch of regulated igaming in the state.
Net Gaming Revenue (NGR) Growth
May 2024 was a notable month for Rhode Island’s online gaming sector. The state saw a significant rise in net gaming revenue, with earnings reaching $2.25 million. This represents an 8.4 percent growth from April, which saw $2.08 million in NGR.
This steady increase in revenue highlights the growing popularity of online gambling in the state, which could potentially lead to even higher numbers in the coming months.
Wagering Statistics: Slots vs. Table Games
A closer look at the wagering activity in Rhode Island’s online casinos reveals that residents placed a total of $61.2 million in bets during May 2024. This figure includes $33.7 million wagered on slot games and $27.4 million on table games. After payouts, the revenue from slots accounted for a substantial 72 percent of the total NGR, amounting to $1.6 million. Meanwhile, table games contributed $627,472 to the NGR.
The preference for slots over table games is consistent with trends seen in other states where igaming is legal. Slots typically offer more variety and lower entry costs, making them more appealing to a broader audience.
A Growing Industry
Rhode Island’s foray into regulated igaming began on March 5, 2024, with Bally’s as the sole online provider. By May, the state had joined the ranks of other states with legal online gaming, including Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia.
Collectively, these seven states saw $635 million in igaming revenue in May 2024. Rhode Island’s contribution, though modest in comparison, is significant for a state with a smaller population. The state’s steady growth in NGR suggests a strong future for its online gaming industry.
Comparison with Other States
Rhode Island’s performance can be better understood by comparing it with the other states where online gambling is legal. For instance, New Jersey and Pennsylvania are among the leaders in the US igaming market, consistently generating hundreds of millions in monthly revenue.
However, Rhode Island’s results are impressive given the state’s size and the fact that it only recently launched regulated igaming. The 8.4 percent month-over-month growth indicates a healthy adoption rate among residents, which bodes well for the state’s future revenue potential.
Revenue Generation and State Benefits
The revenue generated by Rhode Island’s online casinos not only boosts the local economy but also provides a new source of tax income for the state. As the industry grows, so too will the economic benefits. The 8.4 percent growth in May suggests that the market is far from saturated, and there is room for continued expansion.
Potential for Expansion
Rhode Island’s online gaming industry has the potential to expand further. If the state continues to see growth in NGR, it might attract more operators and increase the variety of games offered to players. Additionally, the state could explore partnerships with other states to offer pooled player networks, which could further enhance revenue.
Rhode Island’s entry into the regulated igaming market has been marked by promising growth, with net gaming revenue reaching $2.25 million in May 2024. The state’s performance, while modest compared to larger states, is impressive given its size and the short time since igaming was legalized. As more residents engage in online gaming, and as the state considers potential expansions, Rhode Island could see its igaming market continue to flourish.
This early success in Rhode Island reflects broader trends in the US, where online gaming is becoming an increasingly significant contributor to state revenues. As the industry grows, it will be interesting to watch how Rhode Island’s online gaming market evolves and what strategies the state employs to sustain this momentum.