US online casinos are an increasingly important part of the global gambling business.
That’s the takeaway from two Q1 earnings calls this week, held by European supplier giants NetEnt and Evolution Gaming. Both said the US market was a key driver of revenue growth at a time when their core Nordics markets are struggling.
NetEnt, for instance, now generates more revenue from North America than its home Swedish market. Evolution likewise sees more revenue from the US than the entire Nordics region.
Some of that is down to issues with the regulated market in Sweden, but it also reflects a booming US online gambling market.
Live dealer provider Evolution saw its Q1 US revenues climb 54% year-on-year to $7.7 million. That figure also marked a 7.5% increase compared to Q4 2019.
Evolution said New Jersey was outperforming its expectations and demonstrated the potential for the wider US market. The firm is aiming to open a new live dealer studio in Pennsylvania before the end of 2020.
Meanwhile, NetEnt also hailed strong results in the US. North American revenues hit $3.6 million in the quarter, with the company saying the market (along with the UK) accounted for most of its overall growth.
Exact comparisons with previous years or quarters are difficult for NetEnt, as Q1 2020 is the first time it has broken out US-specific revenue splits.
Looking ahead, both companies expressed optimism about the pace of online casino legislation in the US.
For starters, Michigan is aiming to have its online betting and gaming market live this year instead of 2021, as previously covered by Legal Sports Report. The state essentially needs more tax revenues at a time when budgets are getting squeezed, and more states could follow.
“This is very positive, and we expect more us states to allow online gaming in the coming months and years,” said Evolution CEO Martin Carlesund. “We are well-positioned to capitalize, and we will continue to focus on strengthening our North American footprint.”
US online gaming legislation has lagged behind sports betting to date, but don’t be surprised to see it accelerate in a big way in 2020.