What Is The Poker Industry Worth In Different States?

The poker industry in the U.S. has undergone many advancements over the years. The 21st century has also brought soaring demand with the option to play online being made more accessible through the reform of regulations in many states and the proliferation of online casinos. Online poker in particular has been a major driver for a drastically increased revenue being generated by the poker industry, with millions of players participating worldwide through both local and offshore platforms.

In states such as Illinois, players interested in playing online poker have to resort to offshore sites. According to iGaming expert Phil Kazunga, as most states don’t offer legalized online gambling, it’s become common practice for U.S. players looking for online poker games to turn to overseas platforms. He goes on to offer a review of vetted offshore sites that are recommended on ReadWrite for Illinois players.

Top online poker sites usually distinguish themselves by offering a variety of games to choose from. However, despite all the state restrictions that exist, the availability of both live tournaments and online games in the U.S. attests to a dynamic poker scene that has a long history that now transcends online participation on computer screens and has moved into the 21st century via mobile apps.

Taking that into consideration, poker has come a long way from seedy backroom games and prohibited tournaments to a robust industry that is thriving nationwide and internationally. The global popularity of poker and other casino games has increased exponentially as a result of both online platforms and live tournaments now becoming a massive business in the digital age.

By 2022, the global online poker market was estimated to be worth approximately $86.2 billion, with the United States playing a pivotal role in maintaining this ecosystem through a significant share of the market. However, the legal landscape of poker differs from state to state causing what has been dubbed a “patchwork quilt” of legal regulations.

Federal laws provide the freedom for each state to decide whether to legalize online poker or not. To that end, different states have implemented different regulations making poker games more popular in areas that have embraced legislation of online gambling in general.

To make poker more accessible, stakeholders have found innovative ways to legally introduce poker into casual social situations, such as by developing and distributing digital game tables in bars and pubs nationwide. Although these tables do not offer cash prizes, they help players hone their skills for if and when they do ever play at an online casino or compete in a live tournament.

Considering the market share of each state paints a clear picture of how regulations affect player participation. For example, Nevada legalized online poker back in 2013 and has since pioneered in this field. The embracing legislation in Nevada complements the culture of its most famous city—Las Vegas!

Ever since taking this bold step, the implications have been highly beneficial in terms of revenue generation for the state, especially when combining both online casinos and brick-and-mortar establishments. According to Statista reports, Nevada has the most revenue for poker when compared with all other states. No surprise really given that La Vegas of course contributes to its figures.

On the other hand, Pennsylvania has the second-highest gross revenue in terms of poker and across the broader gambling scene. The online poker-related revenue in Pennsylvania generated $33.6 million of gross income in 2023.

Other states such as Delaware, and New Jersey have also been doing well considering the size of each state respectively. New Jersey has reported $27.3 million in online poker revenue alone in 2022. Delaware on the other hand, only reported $440,956 within the same year. The small market share of Delaware is due to the size of this state and its population. Another factor that affects this state’s market share seems to be the presence of only one online casino offering poker within this state despite online gambling being legal there.

Michigan does not single out the revenue generated from poker whether it is online or live but this state has recorded one of the highest market shares in the U.S. from revenue derived via online gaming platforms and real money online casinos. The total revenue generated from all online games available in Michigan was $234.8 million in early 2024.

Similarly, Louisiana has a very lively casino scene but doesn’t single out the revenue generated from poker whether live or online. The total market size of this state in early 2023 was reported to be in excess of $205 million. These figures can be attributed to cooperative participation from regulatory authorities and the presence of many different legal casino operators within the state.

Diversifying the number of online casinos operating in a state by embracing regulations and empowering online casino developers has the potential to increase the revenue generated by the gambling industry in general. Although these figures are based on online poker games, live games in casinos have also been very popular.

For example, West Virginia has a bustling casino industry, and card games such as poker have generated over $34.9 million throughout the 2023 fiscal year. The state only legalized online poker in 2019 and is now looking to expand its gambling offerings after seeing a marked increase in the tax revenue it generated.

Reported poker industry earnings in some states remain obscure since both land-based and online casino earnings are bundled into one. One factor that could help paint a clearer picture of how much each state’s poker industry is worth would be creating a uniform framework that regulates gambling activity across all states. What is interesting to note is that all the states mentioned offer legalized online gambling in some form, making it clear that the iGaming industry plays a major role in boosting gambling revenue in these states.

The notion of federal regulation over gambling legislation nationwide has spurred an ongoing debate on the matter. There are different perspectives with some vocalizing that each state has authority over such matters and others highlighting the value of a uniform approach to regulation. These debates make it a complex issue from a legal standpoint that will take time to be adequately addressed.

Gambling at large is getting a favorable reception from lawmakers and the public. Compacts and legislative bills being recommended indicate great potential for growth which will undoubtedly positively affect the market size of each state respectively. A prime example of such compacts is the Multi-State Internet Gaming Agreement (MSIGA). Michigan is the most recent state to sign up to this agreement and it has certainly worked in their favor.

Whether or not more states will join the likes of Michigan is yet to be seen. However, conducive legal environments have proven to have good potential for revenue generation for both online casino operators through the business it brings into the state and state authorities through taxation. Additionally, the streamlining of regulatory obligations for casino operators could improve the reporting standards to clarify the individual market share of each state in the different games offered.

*Photo by Kenan Constance / Unsplash

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