Why the $869M April surge has Vegas watching closely

While land-based casinos in Las Vegas and Atlantic City are reporting shrinking profits and foot traffic, the online gambling sector continues to shatter expectations, month after month.

Digital growth vs. brick-and-mortar decline

April’s numbers come on the heels of a record-setting March, when online casino revenue surpassed $905 million. 

And while digital platforms remain limited to just seven states, every one of them showed at least 25% year-over-year growth.

In comparison, Land-based casinos are losing steam fast. 

Here's the snapshot:

🟠 Atlantic City (Q1 2025):

• 📉 -5.1% revenue drop

• 💸 Profits down for the third straight year

🟣 Las Vegas Strip (March 2025):

• 🧾 -4.8% decline in revenue

• 👥 Visitor numbers down 8% YoY

In contrast, every regulated iGaming state saw at least 25% growth. The convenience and accessibility of online play are outpacing the old-fashioned, in-person buzz of the casino floor.

What’s behind the shift?

A big question these figures prompt is why this shift is happening. 

One reason is demographic change. The average online casino player is 34 years old, significantly younger than the typical land-based casino visitor, who is over 40. These players value convenience, mobile access, and fast-paced digital experiences.

And states are reaping the benefits. 

In April alone, $169.3 million in taxes were collected from online operators, up $43.9 million from last year. That’s without including local taxes and tribal payments.

🟢 $169.3 million in state taxes

📈 Up $43.9M YoY

As Pennsylvania and Michigan continue to dominate, smaller markets like Connecticut and Rhode Island are also seeing explosive gains, proving that even newer entrants can scale quickly under the right regulatory conditions.

State	Revenue (April 2025)	YoY Growth
Pennsylvania	$197.2M	+28%
Michigan	$192.9M	+31%
New Jersey	$187.9M	+21%
Connecticut	$40.8M	+55%
West Virginia	$18.1M	+42%

Where do Sweepstakes casinos land in this?

There’s another twist: Sweepstakes casinos are outpacing online casinos in new account sign-ups. But that growth may be misleading.

According to Optimove data, only 12% of sweepstakes users convert to paying customers, compared to 51% for real-money casinos. 

Even among active players, real-money platforms show stronger retention and far higher spending. Sweepstakes may offer reach, but real-money iGaming wins on engagement, loyalty, and revenue.

What lies ahead

Despite the momentum, most US states have yet to legalize online casinos. But the numbers speak for themselves. 

With billions in untapped tax revenue on the table, states like Ohio, Illinois, and New York are facing increasing pressure to join the iGaming wave.

If April’s $869 million proves anything, it’s that online casinos aren’t the future of gambling; they’re the present. 

And every month that passes without new regulation is another month of missed opportunity.