Delaware, the first state to ratify the US Constitution, has also been a pioneer in the online gambling industry. The state legalized online casino, lottery, and poker games in 2012, and has seen remarkable growth in revenue and player spending ever since. 2021 was a record-breaking year for the online gambling sector in Delaware, with several factors contributing to its success.
New Operators and Products Boost the Market
One of the reasons for the impressive performance of the online gambling industry in Delaware is the entry of new and exciting operators and products. The state has three licensed online gambling platforms: Delaware Park, Dover Downs, and Harrington Raceway. These platforms use some of the best software providers in the industry to deliver world-class entertainment packages for online gaming enthusiasts.
Some of the latest software providers to enter the US market include Playtech Live games, NetEnt, and LeoVegas, a famous European brand that offers its casino aggregator platform via a deal with Caesars Entertainment. These providers offer a variety of games, such as video lottery, online table games, and online poker, that cater to different tastes and preferences of the players.
Video lottery is one of the most popular games played at online casinos in Delaware, accounting for more than 75% of the total online gambling revenue in 2021. However, there are other up-and-coming products that are gripping fans from all over the state. For example, online sports betting, which was legalized in 2018, has seen a surge in popularity and revenue, especially during the peak seasons of major sports leagues.
November and December Set New Records
Another factor that contributed to the stellar performance of the online gambling industry in Delaware was the strong finish in the last two months of 2021. According to the Delaware Lottery, which oversees the online gambling sector, November and December marked the highest levels of revenue and player spending ever recorded in the state.
In November, the online gambling revenue reached $996,639, up 75.5% from the same month in 2020. This was the highest monthly revenue since March, when the state saw $1.0 million in revenue. In December, the online gambling revenue surpassed the $1 million mark for the first time, reaching $1.1 million, up 129.7% from the same month in 2020. This was the highest monthly revenue ever recorded in the state.
The revenue growth was driven by the increase in player spending, which also reached new highs in November and December. In November, the total player spending amounted to $30.1 million, up 83.5% from the same month in 2020. This was the highest monthly spending since March, when the state saw $30.7 million in spending. In December, the total player spending soared to $35.5 million, up 103.4% from the same month in 2020. This was the highest monthly spending ever recorded in the state.
2021, A Record Year
The online gambling industry in Delaware had an incredibly successful 2021, finishing the year on a very positive note. According to the Delaware Lottery, the industry grew 26.2% when compared to the figures from 2020. This kind of growth is simply remarkable, and the industry as a whole is looking in a very promising position.
For the whole year of 2021, the revenue for the industry totaled $10.6 million, up from $8.6 million in 2020. Consumer spending in the state also climbed to new levels, with $308.8 million generated, up from $228.7 million in 2020. These figures show that the online gambling industry in Delaware has a strong and loyal customer base, as well as a potential to attract new players.
Delaware Park was the leading online gambling platform in the state, accounting for $4.2 million of the total revenue in 2021. Dover Downs was the second, with $3.6 million, and Harrington Raceway was the third, with $2.8 million. All three platforms saw an increase in revenue and spending compared to 2020, indicating a healthy and competitive market.
What to Expect in 2022
The online gambling industry in Delaware has shown impressive resilience and innovation in the face of the challenges posed by the Covid-19 pandemic and the changing consumer behavior. The industry has adapted to the new realities and has leveraged the opportunities offered by the digital transformation and the growing demand for online entertainment.
The outlook for 2022 is optimistic, as the online gambling industry in Delaware continues to offer high-quality products and services to its customers, as well as to explore new markets and segments. The early figures for 2022 suggest that the industry is on track to surpass the record-breaking performance of 2021, as the revenue and spending in January and February have been higher than the same months in 2021.
The online gambling industry in Delaware is also expected to benefit from the ongoing legalization and regulation of online gambling in other states, such as New York, Connecticut, and Maryland, which could create more awareness and interest among the potential customers in the region. Moreover, the industry could also benefit from the introduction of new products and features, such as live dealer games, virtual reality, and social gaming, that could enhance the online gambling experience and appeal to a wider audience.
Delaware, the first state to join the union, has also been a leader in the online gambling industry. The state has proven its ability to create a successful and sustainable online gambling sector, that generates revenue, jobs, and entertainment for its residents and visitors. The online gambling industry in Delaware is poised to soar to new heights in 2022 and beyond.
