The most recent revenue figures have been released for the iGaming industry. Adam Krejcik took to Twitter earlier Friday to break down the numbers both nationally and on a state level.
The total win by regulated U.S. online casinos and poker rooms for February was $11.29 million. Breaking that number down, New Jersey took in $10.3 million in revenue, Nevada $824,000 and Delaware $170,000.
Since the inception of legalized iGaming in America, over $37.2 million in revenue has been collected. Online poker officially launched last year in Nevada with the state taking in $8.5 million in revenue. New Jersey has taken in $28.1 million in revenue since they launch late last year and Delaware has taken in just $600,000.
While these numbers seem impressive, they have cause concern for some analysts. According to a report by ABCNews on Tuesday, Morgan Stanley lowered their estimate for the iGaming market in the U.S. for the both the short and long-term.
For New Jersey, the firm lowered their estimate for first year’s revenue from $541 million to just $203 million. New Jersey has $19.7 million in revenue for the first two months of 2014. They also lowered their estimate for the nation’s iGaming market to $3.5 billion by 2017. The original forecast has the U.S. iGaming market taking in $5 billion by then.
Looking at estimates for other states, an article in a September 2013 issue of USA Today put estimates for Delaware at $3.75 million. At present, they are on pace to fall short. Nevada may be the one state to meet or beat some estimates. While estimates have ranged wildly, the same USAToday article put Nevada’s first year revenues at $3 million.
Krejcik later gave us an idea of where iGaming currently stands in comparison to social gaming:
Total regulated U.S. iGaming mrkt since inception = $37.2m, IGT/DoubleDown did $64.8m last qtr. So far not even close between social & RMG.
— Adam Krejcik (@akrejcik) March 28, 2014
Considering that those figures were for just one company, it is clear that social gaming will still be a dominant force in the country for many years.
While numbers are down from initial estimates, analysts are still positive on the future. Morgan Stanley still believes that iGaming will be an $8 billion industry by 2020.
The U.S. iGaming market is still in its infancy and while these recent numbers cause concern for some, they really need to be taken with a grain of salt. Estimates change based on market conditions and iGaming is currently in a state of flux. Once we start seeing other states join the market, then we will get a more realistic picture of what the future of iGaming holds.