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The US iGaming industry has hit revenue records in 2024, reflecting a pivotal year of growth and transformation. Followed by increased legalization in more states, evolving consumer habits, and advanced technology, online gaming has positioned itself as a major player in the digital economy. The stability of the online iGaming industry in the United States depends on several factors, making it a complex market that is dynamic and sometimes unpredictable but promising and lucrative.
In 2023 the American Gaming Association (AGA) revealed that the US gross gaming revenue reached $66.5 billion, the market’s third straight record year. Compared to 2022’s revenue of $53 billion, 2023’s total increased by 10% and reached $60.4 billion.
According to a new Vixio report from July this year, the US is very likely to become the leading iGaming market, surpassing even the UK by the end of 2024. Considering that only seven out of fifty states in the US have officially legalized online gambling, these statistics look more than optimistic.
The iGaming industry and its various forms (sports betting, lotteries, etc.) are slowly becoming recognized in more states, making more online casino games and betting options available. Though progress has been slow, several states are moving forward with legalizing online gambling in 2025. This gradual shift reflects growing interest in expanding gambling markets as more states recognize the potential for increased revenue and consumer demand. States such as Illinois, Indiana, New York, California, and Massachusetts, are expected to be among the first to do so, as BettingUSA claims. The consequences of the 2024 elections will tell us more about the matter in the near future.
The certain thing is that mobile apps have significantly transformed iGaming, like almost any other industry. The convenience of playing from anywhere, together with increasingly sophisticated technology, has expanded user engagement and spending. Apart from making gambling accessible 24/7 to everyone who uses a smartphone and has an internet connection, online gambling also provides both anonymity and security to the players, making it a desirable choice for entertainment to more users around the globe. Whether you decide to bet on basketball or play slots online, you may be sure that your money and personal data are secure.
All of the points mentioned above lead us to an obvious conclusion: mobile gaming has a significant impact on iGaming revenue.
The iGaming sector attracts nearly half of the global population, especially young adults, and has been experiencing rapid growth since the beginning of the new millennium. Experts predict that the industry’s revenue will surge by 52.4% by 2030.
Apart from accessibility, safety, and anonymity, the iGaming sector provides numerous technological innovations. These include VR, which offers different interactive and immersive experiences, and AI, which improves customer experience and design and provides a variety of themes. The rise of artificial intelligence brings us numerous benefits, among which are personalization and individualization in terms of promotions and rewards, helping increase players’ engagement, which then consequently boosts revenue.
Online gambling is legal under US federal law, but each state has its own regulations. Some states fully allow online gambling, including games at online casinos and poker, while others allow only lotteries or sports betting. On the other hand, some states have very strict regulations with corresponding bans and restrictions (such as Texas) and little to no will to change this in the near future. How can this affect iGaming revenue and its overall success?
Regulations are vital in shaping iGaming’s success by creating a structured legal framework that protects users and ensures fair play. States with clear licensing requirements and user safeguards attract reputable operators and reduce illegal competition. Regulations also include taxation, which directly generates state revenue. Ultimately, ensuring standard rules across the state or at the country level will lead to sustained success in this industry.
In a conversation with CDC Gaming, Chad Beynon with Macquarie Equity Research presented a report that shows 27% growth in iGaming for the current year, which is expected to drop to 11% in 2025. Wall Street analysts said they expect the US gambling and betting industry to grow quickly over the next five to ten years. Morgan Stanley has released its 2024 outlook on the US gambling industry, expecting the global revenue to grow by 17% from 2023 to 2026.
As a current revenue leader in the iGaming market, the US shows strong potential for continued growth and expansion. The US market leads in revenue due to increasing legalization, advanced technology, and changing user interests.
As more states adopt online gaming laws and technology continues to enhance player experiences, the industry is set for sustained growth. While challenges like regulatory limitations persist, we may agree that strong demand and innovation ensure a bright future for the sector.
