Rhode Island’s Online Casino Revenue Increases by 8.38% in May

Providence, R.I. — Rhode Island's nascent online casino market continues to grow, with an 8.38% revenue increase in May, marking the third month since its inception. According to the Rhode Island Lottery, Bally’s, the state’s sole online casino operator, generated nearly $2.26 million in adjusted gross revenue. This rise highlights a growing interest in online gaming among residents but also underscores the challenges of scaling in a small market.

 

Third Month of Operations Sees Continued Growth

Rhode Island’s journey into legal online casino gaming began on March 5, when Bally’s launched the state’s first and only online casino platform. Since then, the market has seen a steady increase in revenue:

• March 2024: $1,210,547
• April 2024: $2,081,358
• May 2024: $2,255,696

This growth trajectory indicates an expanding customer base and increasing engagement with online gaming, despite the state’s relatively small population.

 

Slots Drive Revenue Surge

The May revenue breakdown shows that online slots are a significant driver of the market's success:

• Online slots revenue: $1.63 million (72.18% of total revenue)
• Online table games revenue: $627,472 (27.82% of total revenue)

Revenue from online slots surged by 21.44% compared to April, while table game revenue saw a decline of 15.27%. This trend suggests a stronger preference for slots among Rhode Island’s online gamblers, potentially influenced by their accessibility and simplicity compared to table games.

Rhode Island’s Online Casino Revenue in Context

In May 2024, Rhode Island's online casino market generated $2.3 million, a modest contribution compared to other states. When analyzing per-capita revenue, Rhode Island's earnings are the lowest among states with legal online casinos:

• Pennsylvania: With a population of 13 million, Pennsylvania generated $216.49 million in May, equating to $16.65 per capita. It held the largest share of the market at 32.15%.
• Michigan: Generating $198.60 million for its 10.3 million residents, Michigan’s per-capita revenue was $19.28.
• New Jersey: With $192.1 million in May revenue and a population of 9.3 million, New Jersey's per-capita revenue stood at $20.66.
• Connecticut: Connecticut earned $46.3 million with 3.6 million residents, resulting in $12.86 per capita.
• West Virginia: With a smaller population of 1.8 million, West Virginia generated $17.9 million, or $9.94 per capita.
• Delaware: Delaware, the smallest state by population among those listed, generated $3.9 million from its 1 million residents, leading to $3.90 per capita.
• Rhode Island: With a population of 1.1 million, Rhode Island's $2.3 million in revenue resulted in a per-capita revenue of $2.09, the lowest among the states with legal online casinos.

These figures highlight Rhode Island's relative position in the broader U.S. iGaming market, underscoring both its potential for growth and the current limitations posed by its small market size.

 

A Developing Market

Rhode Island’s online casino sector is still maturing, having only launched a few months ago. Legislative approval in June 2023 paved the way for Bally’s to go live in March 2024. As the only operator, Bally’s faces the dual challenge of building a robust online presence while navigating the constraints of a smaller market.

Bally’s also operates two land-based casinos in the state, Bally’s Twin River Lincoln and Bally’s Tiverton, which may benefit from the cross-promotion of its online offerings. However, to foster more substantial growth, additional operators and increased promotional efforts might be necessary.

While Rhode Island's online casino market has shown promising initial growth, its future will depend on continued engagement from players and potential regulatory or competitive changes. For now, Bally's holds the key to unlocking further growth in the Ocean State’s fledgling iGaming industry.