This gives some hope that the online poker industry will also be able to get the government to rethink the income tax calculations. A restoration of commercial viability in the Greek online poker market would not only increase government tax revenues, but also boost revenues at the major operators like Amaya. Dec 11, 2019  What it Means to US Poker. When Michigan legalizes online poker, it will become the fifth state to do so. Nevada, New Jersey, and Delaware, all have. Worldwide Online Poker Sites Traffic Report. Pokerscout.com monitors online poker sites and allows you to find the best poker sites in any country with the help of our poker site traffic report. Our data is updated every 10 minutes.

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Increased legalization of casino gambling paid big dividends for the industry in 2017 as revenue from the commercial gaming industry topped $40 billion for the first time, according to a new report from the American Gaming Association (AGA).

Last week, the AGA released its 2018 “State of the States: The AGA Survey of the Commercial Casino Industry” ^(PDF) report, a comprehensive overview of the industry and its economic impact in the 24 U.S. states with legalizing gambling.

“Each year, AGA’s State of the States report provides the most detailed snapshot available of our complex industry, and the many benefits AGA members provide for their employees, partners and communities,” AGA interim CEO Stacy Papadopoulos said. “This year’s report demonstrates the commercial gaming industry’s role as a job creator and revenue generator in states across the country, and we’re proud of the industry’s steady growth over the past few years.”

The report, which focuses on commercial casinos not tribal property revenue, includes state-by-state analyses of: revenue; tax data, wage, and employment information; types of gaming and number of casinos; primary competition faced by casinos in each state; and summarizes the year’s major gaming policy discussions. Key findings from the 2018 report include:

• The commercial casino industry brought in $40.28 billion in gaming revenue in 2017, a 3.4 percent increase from 2016.
• In 2017, states received $9.23 billion in revenue from commercial gaming taxes alone.
• 20 commercial casino states experienced revenue increases in 2017, reflecting strong economic trends and sustained job growth in most parts of the country.

Poker World

Since Black Friday, legalization of online poker has been slower in coming than many poker enthusiasts would like. So far, New Jersey, Delaware, and Nevada have been the only states to offer legalized online poker games, though Pennsylvania has joined them as the fourth state to pass legislation regulating iGaming.

While the AGA report doesn’t cite specific statistics for the growth of poker in relation to other games, it does note that from 2012 to 2017, casino table games have seen bigger percentage growth than slot machines in part due to younger players preferring games like poker.

“Growth in commercial casino table game revenue outpaced that of gaming machines in 2017, continuing a recent trend of younger patrons expressing a preference for games like blackjack and poker over traditional slot machines,” the report says.

Here’s an overview of the states that offered legal online poker:

• Delaware – Properties brought in $415.8 million in revenue in 2017, an increase of 3.1 percent. However, statewide Internet gaming revenue was $2.4 million, down from $2.9 million in 2016. Also, overall revenue has fallen in the last decade as the state’s casinos face increased competition from Maryland and Pennsylvania properties.
• Nevada – Total statewide casino gaming revenue was $11.57 billion, up 2.8 percent from 2016. That included $118.4 million in poker revenue, an increase of 0.6 percent. The state doesn’t break down online gaming in its reports, but that total include online poker from WSOP.com.
• New Jersey – Casino gaming revenue reached $2.66 billion in 2017, up 2.2 percent and the state’s second consecutive annual increase after a decade-long decline following the legalization of casinos in neighboring Pennsylvania in 2006. Internet gambling revenue was up 24.9 percent to $245.6 million. However, that growth was driven from online slots and table games and offset a decline in online poker revenue.

This year, New Jersey and Nevada entered into a shared liquidity market in May, with only Caesars offering online poker through its WSOP.com site (powered by 888poker). Officials in both states hope the larger player and prize pools will now drive more growth in the sector.

That hope showed some positive signs in June, with Nevada showing its biggest-ever total in cash game rake at $17.48 million. That was up 4.8 percent from 2017. Much of that is attributed to the World Series of Poker with some coming from the new shared liquidity market. New Jersey also showed an increase of 1.3 percent in online poker revenue in June, the first month of growth since February 2017.

Caesars has also applied for an online gaming license in Pennsylvania, which is expected to begin allowing online poker and other gaming options this year. The state’s Gaming Control Board recently approved an application from Caesars through its Harrah’s Philadelphia property. Several other companies have also applied to offer online gaming and poker in partnership with Pennsylvania casinos including PokerStars and partypoker. Online wagering in Pennsylvania is projected to begin being offered no sooner than the last quarter of 2018.

Industry Growth

As a whole, most U.S. states experienced growth with several reaching record revenues. All but four of the 24 commercial casino states saw year-over-year revenue increases in 2017, “reflecting strong macroeconomic trends and sustained job growth in most parts of the country.”

That economic growth led to record annual revenue in 11 states: Colorado, Florida, Kansas, Maine, Maryland, Massachusetts, New York, Ohio, Oklahoma, Pennsylvania and Rhode Island.

The report notes that there were other reasons for the industry’s increased revenue beyond just increased traffic due to the economy. Expansion and regulatory changes also helped.

“Competitive pressures are set to grow in key commercial states in the coming years.”

In New York, three new properties opened in 2017 as well as a new casino in Kansas. Several other casinos began or completed renovations or expansions. Public policy changes also helped.

“States such as Maryland, Nevada, New Jersey, Louisiana, and Oklahoma, took steps toward enacting regulatory reforms to either encourage the adoption of new technologies, bolster the competitiveness of their casino operations, or remove arcane restrictions that impede growth,” the report says. “Pennsylvania enacted one of the broadest gaming expansions in recent memory, authorizing Internet gaming, new satellite casino properties and sports betting, pursuant to an applicable change in federal law.”

Fortunately for Pennsylvania and other states getting on the sports wagering bandwagon, the Supreme Court struck down the federal law virtually banning the expansion of sports betting outside of Nevada. As more states legalize sports wagering, its impact will be gauged in 2019’s report.

Government Revenue By Country

However, early indications are that many Americans have been waiting to line up at the betting windows with New Jersey casinos bringing in almost $3.5 million in gross revenue in June.

Gaming Revenue By Country

Overall, the top casino market in the U.S. remains the Las Vegas Strip with $6.46 billion in revenue. That is followed by Atlantic City ($2.41 billion), despite the closing of some properties over the last few years. Those markets are followed by: the Chicagoland area ($1.97 billion); Baltimore/Washington, D.C. ($1.77 billion); and New York City ($1.57 billion).

The industry is also making a significant impact in the American labor market, citing an Oxford Economics study that the industry employed more than 361,000 in 2017, and paid out more than $17 billion in wages, benefits, and tips.

Facing Challenges

Despite record industry revenue, increased competition was and remains a common theme for operators. Maryland serves as an example of this increasing competitive environment and its effects on individual casinos.

The opening of a sixth casino in Maryland in late-2016 drove record statewide revenue in 2017. However, some individual Maryland casinos reported declines in revenue. The new National Harbor casino near Washington, D.C., attracted significant revenue from out-of-state gamblers.

On the same note, the opening of New York’s first casino resorts allowed the state to reach its best-ever total. However, a majority of individual commercial properties saw declines in revenue because of increased in-state competition.

“Tribal gaming was driven by the same underlying consumer trends that benefited commercial gaming.”

“Competitive pressures are set to grow in key commercial states in the coming years,” the report notes. “Two commercial properties are set to open in Massachusetts in 2018 and 2019, and will reshape the competitive landscape of the New England region.”

This year also saw the opening of new properties in New York, and New Jersey had two casinos reopen. Pennsylvania also approved major gaming expansion with 10 new commercial “satellite” casinos with slot machines and tables, which could also include the increased availability of live poker. Slots will also be available at non-casino locations like truck stops. These events could test the strength of Atlantic City’s recovery.

“All of this will significantly transform a commercial casino market that was already America’s second largest by revenue and the largest by total tax collections in 2017,” according to the AGA.

Some challenges go beyond competition and economic issues. Tragedy struck Las Vegas on Oct. 1 when the Strip was the site of the largest mass shooting in U.S. history.

“However, the city emerged from the tragedy stronger than ever before,” the report says. “As Las Vegans bound together in the shooting’s wake, they helped spawn the ‘Vegas Strong’ movement, the viral hashtag which ultimately defined the city’s recovery and resilience.”

SIDE ACTION – Tribal Gaming Growth

While the AGA report focuses solely on commercial casinos, it does offer some insight into the state of tribal casinos as well. These properties operate in 28 states and that is expected to increase this year.

According to the National Indian Gaming Commission, tribal gaming revenues hit a record $32.4 billion in 2017, up 3.9 percent from 2016.

“Tribal gaming was driven by the same underlying consumer trends that benefited commercial gaming,” the AGA says.

To read the AGA report in full, click here.

Sean Chaffin is a freelance writer in Crandall, Texas. His work appears in numerous websites and publications. Follow him on Twitter @PokerTraditions. He is also the host of the True Gambling Stories podcast, available on iTunes, Google Play, TuneIn Radio, Spotify, Stitcher, PokerNews.com, HoldemRadio.com, and TrueGamblingStories.com.

_{Lead image courtesy of www.freeimages.com/Lisa Kong}

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