Eilers & Krejcik Gaming (EKG), supported by data from Fantini Research, has released a new report detailing the performance of online sports betting and gambling operators in the United States for the first quarter of 2024. The report includes data from 28 casinos across six states, representing approximately 64% of the U.S. iGaming market. This broad data pool enables EKG to project that gross gaming revenue from U.S. iGaming will reach an estimated $7.3 billion in 2024, a rise from $6.5 billion in 2023.
According to the report, the first quarter of 2024 saw online casino brands reporting gross gaming revenue of $2 billion dollars, up significantly from $1.5 billion during the same period last year. This growth is attributed to the strong performance of major operators, with FanDuel, DraftKings, and BetMGM leading the pack. Notably, these three operators alone comprised 89% of the market share in the first quarter.
FanDuel continues to lead, generating 35% of the total gross gaming revenue from iGaming, maintaining its performance from Q1 2023. However, DraftKings has closed the gap considerably, accounting for 30% of the gross gaming revenue, up from 25% in the previous year. BetMGM also showed robust growth, increasing its share to 19% from 15% year-over-year.
Caesars Digital remained steady, securing about 5% of the total revenue, consistent with its performance in Q1 2023. This top-four dominance highlights the competitive nature of the U.S. iGaming market and the significant market penetration these companies have achieved.
Real Money Online Casinos in the Lead
The sector is dominated by real money online casinos, projected to generate 7.4 billion dollars in net revenue in 2024. The report also notes the increasing popularity of sweepstakes gaming, expected to bring in $2.9 billion in net revenue for 2024, up from $1.9 billion the previous year. Social casinos also maintained their momentum with $3.4 billion in net revenue.
EKG’s report also sheds light on the top iGaming titles and their suppliers. IGT’s Crash Eruption topped the list, available on 27 online casino websites, with players wagering an average of $1.75 per bet. Games Global’s Fish Em Up and AGS’ Capital Gains also ranked high, with the latter averaging $2.20 per bet across 20 sites.
This report not only illustrates the shifting dynamics within the United States iGaming market but also underscores the ongoing growth and expansion of major operators. The competitive landscape is likely to evolve as these companies continue to vie for a larger share of the market, driven by strategic partnerships and innovations in gaming content. Moreover, more and more American states are discussing legalizing online gambling, potentially creating an even bigger market.