The US online gambling market, encompassing online casinos, is already soaring, and this may just be the beginning.
With technological advancements, expanding legalization, and changing consumer preferences paving the way, 2025 is expected to be a landmark year for the industry.
Gross revenue from the seven legal online casinos in the U.S. was recorded at slightly over $898 million in May, reflecting a 33% increase from May 2024's total of almost $675 million.
Forecasts predict a compound annual growth rate (CAGR) of 11.6% from 2024 to 2029.
This growth rate will add roughly $54.8 billion in market value over this period. Some analyses even suggest a CAGR of 12.1%, specifically for 2025 to 2030. These figures highlight the robust expansion anticipated in the sector, driven by increased participation and innovation.
States Where You'll Find Legal Online Casinos
Online casinos are fully legal and regulated in the following seven U.S. states:
- Rhode Island (the newest addition, legalized in 2024)
- Delaware
- Pennsylvania
- New Jersey
- West Virginia
- Michigan
- Connecticut
Pennsylvania stands out as the leading state, generating $289 million in May gross revenue, a nearly 35% increase from the previous year.
Each of these states has its own regulatory framework, and major operators, such as Caesars Palace Online Casino, BetMGM Casino, and DraftKings Casino, are active in these markets.
Market Drivers Fueling Growth
Mobile Gaming Revolution
One of the main drivers propelling the online casino market forward is mobile gaming.
The widespread adoption of smartphones and tablets has made online gambling more accessible and convenient than ever before. Players can now enjoy their favorite casino games on the go, contributing significantly to the market’s growth.
Rise of Live Dealer and Esports Betting
Live dealer casinos and esports betting are changing the landscape of online casinos. One of the most recent launches of online dealer games was Caesars' live dealer NBA blackjack.
They are attracting new demographics and offering exciting, interactive experiences. As more users gravitate towards these offerings, they contribute to the industry's overall expansion.
Legalization Expanding the Online Casino Market Base
Legalization plays a critical role in the market's growth. More states are permitting online casino gaming, widening the market base.
This trend of expanding legalization opens new avenues for both operators and consumers, enhancing the viability and appeal of online gambling.
Several states are actively considering or have pending legislation to legalize online casinos. The most notable among them are:
Illinois: Lawmakers have filed companion bills in both legislative chambers after public support from the governor. The state already has a strong online sports betting market, making iGaming a likely next step.
Maine: Legislators have held hearings on bills to allow tribal casino operators to offer online casino games. The latest bill is sitting on the Governor's desk.
Massachusetts: Multiple bills have been filed to regulate online casino apps.
New Hampshire: An updated online casino bill has been proposed in the state senate.
New York: Senator Joseph Addabbo has re-filed a proposal to legalize online casinos and is leading the charge to ban sweepstakes casinos in the state.
Other states showing potential or ongoing discussions for legalization include Colorado, Indiana, Iowa, Maryland, and Virginia, though some of these have shelved the issue for 2025.
Nevada allows for online casino gaming under its laws, but only online poker is currently authorized and operational.
Technological Advancements
Technological innovations, like the live studio slots at the Tropicana, are at the heart of the online casino industry’s evolution.
Developments in artificial intelligence, blockchain technology, and improved payment solutions are enhancing user experience and security. These innovations make online gambling more attractive and trustworthy for users, thus driving further adoption.
User Base and Engagement
The average revenue per user (ARPU) in the US gambling market is expected to reach $594.13 in 2025.
This significant figure underscores the high level of engagement anticipated among users. Furthermore, user penetration is projected to hit 58.8%, indicating a broad acceptance and participation level across the country.
Record Year for Online Casinos Expected to Continue
2025 is poised to be a record-breaking year for the US online casino industry.
With double-digit growth projected, increasing user engagement, and expanding state-level legalization, the sector is set to thrive. As technology continues to evolve and more states embrace online gambling, the market's future looks brighter than ever.
Whether you’re a player, operator, or industry observer, the expected growth presents intriguing opportunities and developments worth watching.
