Interstate Poker Pool Contributes to PokerStars 64% Revenue Growth in January

Jessica Aletor
By:
Jessica Aletor
02/03/2023/
News
Flying Casino Chips

Highlights

  • PokerStars emerged from January 2023 with one of the largest revenue growths in Michigan, recording a 64% revenue jump.
  • Before the MGCB released its figures, commentators had projected a 30-50% increase in PokerStars MI revenue.
  • In New Jersey, PokerStars and WSOP.com also witnessed massive growth in revenues from interstate poker.

Michigan online casinos pooled record breaking revenue figures for the fourth month running in January. Individual casinos also witnessed significant growth month-over-month from the end of the year 2022. One of the biggest gainers from the revenue statistics was PokerStars MI, recording a 64% boost in revenue.

A quick look at how this record growth was achieved points to the success of the operator’s interstate poker pool. The growth was not excluded to the Michigan base of PokerStars alone, it also amassed a massive financial boost in New Jersey alongside WSOP.com.

How Interstate Poker Contributed to PokerStars Revenue Growth: A Look at the Data

Preparations for interstate poker started in Michigan in May 2022 when the Wolverine State signed the Multi-State Internet Gaming Agreement. Since then, only PokerStars MI has tapped into the initiative, implementing interstate pools in Michigan and New Jersey. Fortunately, this proactiveness has yielded remarkable financial results for the operator.

At the end of the year 2022, PokerStars reported only $2.2 million in revenue. With the formal launch of interstate pools in January 2023, the traffic on the operator’s site doubled between players across both states. The eventual result of this influx of poker enthusiasts was a 64.6% boost in revenue at the end of January 2023.

These figures exceeded expectations that the operator would make 30-50% more revenue upon the introduction of interstate poker tournaments. The $3.6 million posted in January represents the highest amount polled by the operator since December 2021.

Before the introduction of interstate poker, the operator had witnessed erratic figures without a significant growth pattern. Profit months have been limited to 10% growth margins or less during the period. Barring the introduction of any significant product innovations aside the interstate pool, there is every reason to conclude that its introduction was key to the rise in revenue.

However, it’s worth noting that PokerStars, for the purposes of interstate poker, does not distinguish between players of different states. So, it may be difficult to tell which number of players are located in Michigan and exactly how much revenue they bring in.

Michigan is not the only state where interstate poker has been significantly profitable for PokerStars. The operator has done considerably well in New Jersey and currently stands heads and shoulders above other poker sites in the state. Unlike Michigan, revenue reports in New Jersey, making the impact of interstate poker more evident among its major operators.

PokerStars NJ fell slightly short of the figures its Michigan platform pulled in the month of January. Nevertheless, it polled more than its closest rivals. PokerStars New Jersey recorded a $1.1 million revenue as opposed to BetMGM and WSOP’s $800K+ financial income.

This marked the first time since the summer of 2020 that PokerStars crossed $1 million in revenue as well as the first time it would rank higher than the two other poker leaders in NJ on account of monthly revenue.

In November 2022, PokerStars narrowly missed out on the $600K revenue mark, recording $569,752, a mere 6% increase from October. These figures increased in December 2022 to $619,714, indicating just over 8% rise. Its January figures indicate a whopping 76%, a far higher jump than any operator saw on a month over month period in the year.

With these positive projections, there is just enough to indicate that interstate poker pools will only get bigger in the coming months.

WSOP.com May Introduce Interstate Poker Pools in Michigan Soon

Another closely watched operator that has witnessed significant growth with interstate poker is WSOP.com. Unfortunately, however, the operator has restricted its options to New Jersey, Delaware and Nevada, despite Michigan permitting such innovation almost a year ago. Throughout the period of implementing interstate poker in its other locations, WSOP.com NJ has risen to the top of all-time poker revenue rankings in New Jersey with $97 million.

The big question has always been when WSOP and BetMGM will replicate their outstanding successes in poker operation here in Michigan. For BetMGM, it is harder to tell, many expect WSOP to begin plans after its 2023 World Series of Poker later in July. This is considering the regulatory bottlenecks that may hamper implementation without proper planning.

Jessica is a news contributor to Gamble Online Michigan. She holds a Bachelor's degree in Economics but has over three years of experience working in the hospitality and gambling industry. Despite her core finance and investment banking background, she has been a casino feature writer for N1 Interactive Limited and multiple gambling affiliate sites. Her work has been featured on the bet365 blog, casino.zone and Max Force Racing. She spends her time between Michigan and California, staying up-to-date on the latest industry developments