Growth Forecast for the iGaming Market in the USA by 2025: Online Casinos and Sports Betting

Online gambling in the USA continues to develop at an incredible pace, with forecasts predicting that its total revenue will reach $26.8 billion by 2025.

This market is one of the fastest-growing, with an expected annual growth rate of 7.63% until 2033. Let’s look at the key trends shaping the future of iGaming in the USA.

iGaming Market in the USA: Key Facts and Forecasts

According to reports from iGamingToday and market research, revenue from online games in the USA will amount to $26.8 billion by 2025, a 15% increase compared to 2024. The revenue leaders in 2024 will be Michigan ($2.4 billion), New Jersey ($2.39 billion), and Pennsylvania ($2.18 billion). The leading verticals remain online casinos and sports betting, with sports betting reaching $149 billion in 2024.

Unlike last year when online casinos were legalized in 7 states, sports betting is now legal in 11 states. The most popular types of games remain slots, poker, and sports betting. It is important to note that the majority of players are between 18 and 34 years old, with a nearly equal gender distribution (52% men and 48% women).

Regulatory Situation and Taxes

While the online gaming market in the USA is growing rapidly, issues with legislative and tax regulation remain a significant barrier for operators.

In some states, such as Michigan and Pennsylvania, online casino bets are taxed heavily – for example, in Pennsylvania, the tax rate on slots is 54%, while for tables it’s 16%. For new players looking to enter the market, these high taxes and licensing challenges can pose serious obstacles.

New laws, like those in Wyoming and Indiana, aim to simplify the licensing process, but the overall landscape remains fragmented, with differences in tax rates and licensing requirements from state to state.

Technological Trends and Player Preferences

With the development of technology, the iGaming market is also undergoing changes. Younger players are increasingly choosing mobile platforms for betting, with Android devices remaining the most popular.

Artificial intelligence (AI) technologies are actively being used for personalizing the gaming experience, creating bonuses, and improving security. In the coming years, blockchain technology is expected to grow in popularity to ensure transparency and fairness in games.

Evolution of Gaming: From Mobile Platforms to VR

The gaming industry in the USA is becoming more and more mobile-oriented. Over 53% of players prefer to play via mobile phones, which highlights the importance of mobile platforms for further market growth.

At the same time, virtual reality (VR) is starting to attract attention, despite its high cost. In the future, VR may become an important direction for creating more immersive and innovative gaming applications.

Market Leaders and Competitive Struggles

The main players in the market remain DraftKings, FanDuel, BetMGM, and Caesars, which continue to expand their presence in various states. While large operators dominate in states like New Jersey, Michigan, and Pennsylvania, new companies are also looking for ways to carve out their niche. An important aspect for new players is forming partnerships with local casinos, which makes the licensing process easier and facilitates interaction with regulatory bodies.

Social Influence on the Market

With social features and gaming platforms allowing players to interact with each other, iGaming in the USA is attracting increasing attention. Young players, especially those interested in esports betting, are increasingly choosing platforms that offer opportunities for communication and social play. This creates unique opportunities for growth and player engagement, which is an important factor for operators looking to retain their audience.

Growth Prospects and Challenges

Despite regulatory difficulties, the iGaming market in the USA continues to show impressive results. The growth potential in states that have not yet legalized online gaming, such as Texas and California, offers great opportunities for new operators. It is important to note that successful market entry requires strategic partnerships and significant investments in technological innovations such as AI and blockchain.

Conclusion

According to forecasts, the iGaming market in the USA will continue to grow, with the possibility of doubling revenues by 2033. It is expected that new technologies and changing player preferences will contribute to further development. However, to successfully enter the market, one must consider the peculiarities of each state’s legislation, high taxes, and the need for a constant innovative approach to service delivery.