Optimove Insights: 74% of US deposits made by 5% of players

Optimove Insights, the research and analytics arm of Optimove, analyzed key igaming trends in the US for the first half (H1) of 2024. 

The report leverages data from Optimove’s iGaming Pulse, which aggregates and anonymizes benchmarks from more than 250 global operators, offering a comprehensive view of the industry.

The analysis focused on more than 71.6 million deposits made during the first six months of 2024, identifying growth trends across several key performance indicators (KPIs) in the top five states by deposit amount and total bet amount: Pennsylvania, Michigan, New Jersey, New York, and Illinois. January 2024 served as the baseline for this research.

Conversion, retention, and new retention

On average, 32% of US players who register on a betting site in a given month proceed to make their first deposit within that same month (conversion rate), closely aligning with the global benchmark of 34%. 

This initial conversion, or acquisition, is a crucial step in operator growth, as it signifies the transition from mere interest to active participation. 

Among these newly converted players, on average, 43% continue to be active in the following month (new retention rate), demonstrating a solid retention rate in the early stages of their betting journey.

However, the challenge extends beyond the first month of activity and maintaining long-term engagement is key to sustaining a loyal player base (retention rate).

In H1 2024 in the US, the average retention rate stood at 55%, indicating more than half of the players who were active in one month remained active in the next. This figure is just 1% below the retention rate observed in other regions globally, highlighting the competitive nature of player retention across markets.

Sustaining this level of engagement requires continuous effort in delivering value and personalized experiences to players. 

Whether through targeted promotions, loyalty programs, or enhanced user experiences, keeping players engaged month after month is essential for long-term success in the competitive igaming industry.

Average single deposit amount higher in US versus elsewhere 

US bettors tend to have a higher average monthly single deposit amount compared to bettors in the rest of the world. While in the rest of the world the majority of bettors (59%) tend to deposit $0-$15, only 21% of US bettors fall within that range. 

On the other end of the spectrum, 34% of US bettors deposit over $50, whereas only 12% of bettors outside the US reach that amount (see Fig. 1, below).

Overall, 74% of deposits in the US market are made by just 5% of the players. This highlights the critical importance of identifying and nurturing high-value players as they are the primary drivers of revenue. 

Retaining these players through tailored rewards, personalized experiences, and focused engagement strategies should be a top priority for operators looking to maintain a strong and profitable player base.

Mobile versus web: 75% of bet amount in the US comes from mobile 

Three-quarters of US bet amount is placed via mobile while only 25% is placed by web. 

This indicates a continued shift in how consumers engage with betting platforms, suggesting that convenience, accessibility, and the ability to bet on-the-go are becoming critically important. 

Optimizing the mobile experience is crucial. This means ensuring mobile apps and websites are user-friendly, fast, secure, and personalized. 

Additionally, marketing strategies should focus on mobile-specific promotions, such as push notifications, in-app bonuses, and personalized offers, to engage users directly on their devices.

Number of casino players rises in three states as sports bettors drop

January has always been a powerhouse month in the sports betting world, particularly in the US. 

It is driven by the excitement of the NFL playoffs, followed closely in February with the fervor of the Super Bowl. Then it’s time for March Madness and the NBA playoffs. 

These mega-sporting events are the pillars of the first six months of the year. Casinos aren’t as impacted by seasonality and tend to surge around the holiday season but otherwise show greater consistency.

A closer look at state-by-state data reveals diverse trends

Optimove looked more closely at Pennsylvania, Michigan, New Jersey, New York, and Illinois, with January 2024 serving as a baseline to identify trends and insights. 

In H1 2024, Optimove’s iGaming Pulse recorded an overall downward trend in the number of sports bettors compared to the baseline. 

Meanwhile, the casino sector showed growth. New York State experienced a surge in sports bettors in May and June, while other states recorded a drop (see Fig. 2, above). Michigan showed the most significant fall, with a 54% decrease in July compared to January. 

In the casino sector (see Fig. 3, below), Pennsylvania is leading the charge, finishing H1 with a 17% increase in the number of bettors compared to the baseline. Conversely, Illinois saw a sharp decline, with 37% fewer bettors.

January brought new players in their droves

Unsurprisingly, and with the strong tailwinds of the NFL playoffs, January brought the highest number of depositors compared to other months. The overall H1 trend shows a decline in the number of new depositors from that point on. 

While most states experienced a decrease, Pennsylvania saw an increase of 2% in March, most likely related to the March Madness tournament (see Fig. 4, below). 

In contrast, Illinois displayed a consistent downward trend throughout the year, ending with only 20% of the new depositors compared to January. Perhaps the Chicago Bears’ absence from the playoffs in recent years played a part in that decline.

Growing deposit amounts

Although the overall trend of new depositors shows a decline, we noticed a rise in deposit amounts, which makes sense (see Fig. 5, below). 

New players tend to deposit smaller amounts and bring down the overall deposit amount trend. It demonstrates that existing bettors are depositing larger sums, which compensates for the lower number of new depositors.

Throughout most of the period, Optimove’s iGaming Pulse detected an increase in deposit amounts across the five states. 

Michigan, New Jersey, and Pennsylvania consistently stayed above the baseline throughout. March stood out with an impressive surge, showing deposit increases between 21% and 47% in all states. 

In contrast, Illinois and New York experienced a downturn, ending H1 with a 7% to 24% reduction in deposit amounts compared to the beginning of the year.