United States Online Gambling Market Analysis
The United States online gambling industry is no longer a niche segment—it has evolved into a dynamic pillar of the broader entertainment economy. According to Renub Research, the United States Online Gambling Market is projected to expand from US$ 28.69 billion in 2024 to US$ 52.60 billion by 2033, growing at a Compound Annual Growth Rate (CAGR) of 6.97% between 2025 and 2033.
This expansion reflects a convergence of regulatory progress, digital innovation, cultural acceptance of gaming, and the explosive rise of sports betting. As consumer behavior increasingly shifts toward mobile-first and on-demand entertainment, online gambling platforms are capitalizing on accessibility, personalization, and immersive user experiences.
United States Online Gambling Market Outlook
Online gambling refers to wagering or staking money on games, sports, or events through internet-based platforms. It includes:
· Online casinos
· Sports betting
· Poker
· Bingo
· Lottery-style games
The U.S. market has transformed dramatically over the past decade, particularly after the 2018 repeal of the Professional and Amateur Sports Protection Act (PASPA), which allowed states to legalize sports betting individually.
States such as New Jersey, Pennsylvania, and Michigan have established regulated ecosystems, generating significant tax revenue while ensuring consumer protection. Meanwhile, the COVID-19 pandemic accelerated digital adoption, as land-based casinos temporarily closed and consumers sought online alternatives for entertainment.
The result is a rapidly maturing industry combining regulation, innovation, and mainstream appeal.
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Key Growth Drivers in the United States Online Gambling Market
1. Expanding Legalization and Regulatory Support
One of the strongest growth catalysts is state-level legalization. While there is no unified federal framework, an increasing number of states have legalized sports betting and online casino operations.
Regulated markets offer:
· Consumer protection
· Responsible gambling frameworks
· Transparent licensing systems
· Tax revenue generation
The American Gaming Association (AGA) reported that as of January 2025, responsible gaming statutes exist in 38 states and the District of Columbia, underscoring the growing regulatory foundation.
States like New Jersey and Pennsylvania permit a wide range of online gambling activities, while others continue exploring legislative reforms. As more states legalize digital gaming, the addressable customer base expands significantly.
2. Technological Advancements and Enhanced User Experience
Technology has reshaped the gambling experience. Platforms now leverage artificial intelligence, data analytics, blockchain security, and live-streaming capabilities to deliver immersive gaming environments.
Key innovations include:
· AI-driven personalized recommendations
· Live dealer casino games
· Real-time sports data integration
· Secure e-wallets and cryptocurrency payments
· Augmented and virtual reality experimentation
Mobile-optimized platforms ensure seamless access across devices, while robust encryption systems protect user transactions.
In January 2025, Penn Entertainment expanded the ESPN BET brand to additional retail sportsbook locations in collaboration with ESPN, reflecting the integration of media, sports, and digital betting.
3. Rapid Expansion of Sports Betting
Sports betting has become one of the fastest-growing segments within the online gambling market. Following PASPA’s repeal, millions of sports fans began placing wagers on NFL, NBA, MLB, NHL, and college sports.
Operators now provide:
· In-play betting
· Live streaming
· Real-time odds adjustments
· Integrated statistics
Strategic partnerships between gaming operators and professional sports teams further drive brand recognition and user acquisition.
In March 2025, Bet365 entered the Illinois sports betting market via partnership with Walker’s Bluff Casino Resort, marking its 13th live U.S. state for mobile sportsbook operations.
Challenges Facing the U.S. Online Gambling Industry
1. Regulatory Fragmentation
The absence of a cohesive federal framework creates complexity. Each state sets its own rules regarding:
· Licensing requirements
· Tax rates
· Permitted game categories
· Operational restrictions
For example, while New Jersey supports full-scale online casinos and poker, states like Utah prohibit all forms of gambling.
This patchwork system increases compliance costs and complicates nationwide expansion strategies.
2. Concerns Over Problem Gambling and Addiction
With 24/7 accessibility and mobile convenience, online gambling presents increased risks of addiction. The anonymity and immediacy of digital platforms may encourage excessive behavior, particularly among younger users.
To address these concerns, operators implement:
· Self-exclusion tools
· Spending and deposit limits
· Real-time behavioral monitoring
· Responsible gaming awareness programs
Regulators continue to emphasize safeguards to ensure sustainable market growth.
Segment Analysis
United States Online Casino Market
Online casinos represent a major revenue contributor in regulated states. Players access slots, blackjack, roulette, baccarat, and live dealer games through digital platforms.
High-definition graphics, real-time interaction, and immersive features have significantly improved user engagement. Cross-platform integration allows customers to switch between sports betting and casino games seamlessly.
States such as New Jersey and Michigan have become benchmarks for online casino regulation and profitability.
United States Online Bingo Market
Though smaller than sports betting and casino segments, online bingo continues to grow, particularly among older demographics and community-focused players.
Digital bingo platforms offer:
· Interactive chat rooms
· Themed gaming rooms
· Loyalty rewards programs
Mobile integration has broadened accessibility, allowing players to participate from anywhere.
United States Online Gambling Desktop Market
Desktop platforms traditionally dominated the industry due to larger screens and stable internet connections. Professional poker players and high-frequency bettors often prefer desktops for:
· Multi-table play
· Enhanced analytics
· Better integration of live dealer features
Although mobile adoption is increasing, desktop usage remains significant among dedicated players.
United States Online Gambling Mobile Market
Mobile gambling is now the fastest-growing device segment. Smartphone penetration and app-based betting platforms have transformed how consumers interact with gambling services.
Features driving mobile growth include:
· Push notifications
· Instant deposits and withdrawals
· Biometric security
· In-app promotions
Sports betting apps, in particular, see peak usage during major tournaments and live events.
State-Level Insights
California Online Gambling Market
California represents the largest untapped potential market. Despite its strong gambling culture supported by tribal casinos and card rooms, online casino and sports betting legislation remains politically complex due to tribal exclusivity debates.
If legalized, California could become the largest online gambling market in the country due to its population size and digital adoption rates.
New York Online Gambling Market
New York rapidly emerged as a leading sports betting state after launching mobile wagering in 2022. The state generates billions in betting handle and substantial tax revenue annually.
Its dense population and strong sports culture make it one of the most profitable regulated markets in the nation.
New Jersey Online Gambling Market
New Jersey is widely regarded as the pioneer of regulated online gambling in the U.S. Since legalizing online poker and casinos in 2013, it has built a stable, competitive ecosystem.
Partnerships between Atlantic City casinos and digital operators have driven consistent revenue growth. The state’s comprehensive regulatory framework provides stability and strong consumer confidence.
Washington Online Gambling Market
Washington maintains one of the strictest online gambling environments, permitting only limited tribal-run sports betting. Online casinos and poker remain illegal.
In July 2024, BetMGM launched its mobile sportsbook in Washington, D.C., acquiring exclusive mobile betting rights near Nationals Park through a partnership with the Washington Nationals.
Although Washington state remains restrictive, its large population and passionate sports fan base suggest strong potential if regulations evolve.
Market Segmentation
By Type
· Sports Betting
· Casinos
· Bingo
· Poker
· Others
By Device
· Desktop
· Mobile
· Others
Top States
California, Texas, New York, Florida, Illinois, Pennsylvania, Ohio, Georgia, New Jersey, Washington, North Carolina, Massachusetts, Virginia, Michigan, Maryland, Colorado, Tennessee, Indiana, Arizona, Minnesota, Wisconsin, Missouri, Connecticut, South Carolina, Oregon, Louisiana, Alabama, Kentucky, and the Rest of the United States.
Competitive Landscape
The U.S. online gambling market features a mix of global gaming operators and domestic industry leaders. Major companies include:
· Betsson AB
· Kindred Group
· Entain plc
· Bet365
· Flutter Entertainment
· MGM Resorts International
· DraftKings
· Super Group
Each company is evaluated across five viewpoints: overview, key personnel, recent developments, SWOT analysis, and revenue performance.
Final Thoughts
The United States Online Gambling Market stands at a pivotal growth stage. With revenues projected to rise from US$ 28.69 billion in 2024 to US$ 52.60 billion by 2033, the sector reflects strong structural momentum driven by legalization, technological innovation, and consumer demand.
However, regulatory fragmentation and responsible gaming concerns remain critical issues that must be carefully managed. Sustainable expansion will depend on balancing profitability with ethical safeguards and consistent policy frameworks.
As digital entertainment continues reshaping consumer habits, online gambling is poised to remain a powerful and evolving force within the U.S. gaming economy—blending technology, sports, and interactive engagement into one of the fastest-growing segments of the entertainment industry.
