The online gambling market in the United States has consisted of various game types: sports betting, online casinos, and other game types. These games are played on either computer or mobile devices and are legal in most states, particularly Pennsylvania, New Jersey, Delaware, and Michigan.
Here is a quick report that offers a forecast and market size for the United States’ online gambling market value for all game types and real money online casinos.
The value of the online gambling market in the United States in 2020 was around $1.978 million. Furthermore, it is predicted to hit a compound annual growth rate (CAGR) of 17. 32% for the 2022-2026 forecast period.
The COVID19 pandemic has had the strongest impact on industry worldwide, including the United States. This has caused gambling venues, lottery outlets, and casinos to close and has suspended sporting events where the betting system takes place.
This led the gambling market to move from offline to online activity. Due to the closure of many gambling establishments, some gambling operators have switched to digital mode. Most players have extended their services online, providing a positive impact on the market.
The iGaming industry in the country is projected to grow, with more states proposing regulations. Moreover, the increasing number of online casino games downloads may create more revenue streams in the whole online gambling market. After the forthcoming launch of online gambling in 2019 in Pennsylvania, companies have started forming partnerships to manage the increase in demand for online gambling platforms and offer gamblers a better gambling experience.
Regulated online gambling in New Jersey is today’s largest gambling market in the United States. More than a dozen licensed and legal online casino and poker room sites compete annually for a market of over $ 225 million. Moreover, that state has also several online sports betting apps and sportsbooks.
According to 2019 data from the Division of Gaming Enforcement (DGE), about the revenues from the major online casinos in New Jersey: the Borgata/Party, $5.66 million; AC Resorts, $ 6.39 million; and the Golden Nugget/Betfair, $13.6 million.
Major market trends
Live casinos are developing in the country
The market for live casinos is still developing in the country due to its strict regulations. But the software providers Evolution Gaming and Ezugi are licensed to offer live dealer games in New Jersey. As a result, global companies are entering and investing heavily in this market to expand their customer base and geographic footprint.
For instance, Evolution Gaming has initially started its live casino studio in January 2018 in Vancouver. Furthermore, the software provider has partnered with licensed operators like Hard Rock Hotel & Casino Atlantic City, Ocean Resort Casino, PokerStars Casino New Jersey, and 888casino.
Aside from these major players, various software providers have started on acquisitions and mergers as one of their strategies to optimize their offerings and achieve consolidation. In particular, Evolution Gaming bought Ezugi, another live dealer games provider, in January 2019.
Pennsylvania: Fastest growing market
The fourth and largest state to regulate and legalize online gambling is Pennsylvania. The new law has allowed the operation of iGaming, such as online casinos, sports betting, online poker, and more.
Casino gaming such as slots and table games like blackjack and roulette, fantasy betting, and horse race/ sports betting is managed by Pennsylvania Gaming Control Board. On the other hand, the lottery is run by the Pennsylvania Lottery.
According to the American Gaming Association, Pennsylvania casinos have a total gambling income of about $3.226 million in 2017, next to Nevada. With this in mind, the regulation of online casinos within the state is projected to increase various casino games downloads, adding more revenues to the total online gambling market.
While the state is doing its best to offer the best online gambling experience to its users, Pennsylvania has high online gambling tax rates:
- Poker (16%)
- Table games (34%)
- Slots (54%)
A highly fragmented market, the US gambling market comprises regional and global gambling corporations like Caesars Entertainment Corporation, 888 Holdings PLC, William Hill PLC, and others. Huge corporations aim at acquisitions and mergers to broaden their presence and improve their brand portfolio to provide diverse consumer preferences.
For instance, The Stars Group Inc, a part of Flutter Entertainment PLC, announced in 2019 that it has partnered with the Akwesasne Mohawk Casino Resort. In addition, they have partnered to expand sports betting operations and gaming and betting market access in New York State.
Huge players also get into agreements/associations to boost their services. Moreover, these corporations also want to bring their services to new markets. In 2018, for instance, 888 Holdings PLC had launched a new live dealer casino game service in New Jersey as part of their business expansion in the Garden State.
Many things may still happen in a few years, but the online gambling industry seemed unstoppable that even the pandemic only boosts their business. Meanwhile, these major gambling corporations in the US will never stop improving and evolving and do whatever it takes to stay on top of the competition.