Already exceeding expectations, it may be that legal and regulated US online gambling is barely scratching the surface when it comes to growth of the industry.
According to projections from Reseachandmarkets.com, a leading market research firm, the upward trends in terms of growth in the industry is anticipated to continue right through the end of the current decade. The company’s US Online Gambling – Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2018 – 2029 report is painting a positive future for the US gambling industry.
According to this report, the sector is expected to show continued upward mobility at a solid compound annual growth rate (CAGR) of 16.52% from 2024 to 2029, with a projected valuation surge from $5.12 billion to as much as $10.98 billion.
The US gambling industry has been displaying steady traction since the conclusion of COVID-19 restrictions in 2021. There was $52.99 billion wagered at legal and regulated US gambling options in 2021. Leading the way were Pennsylvania ($4.83 billion) and New Jersey ($4.74 billion).
New Technology Will Continue Growth
Projections for this continued growth in betting revenue are based upon a number of factors. The age of the online betting customer in the US, especially in sports betting, is skewing younger, with much of the action coming from millennials and Gen Z demographics, who are doing the vast majority of their betting via mobile apps.
It’s this trend toward new technology that has often been the story of growth within the industry in the past, and that is projected to continue to fuel the upward trajectory of online US gambling.
Recent developments such as the blockchain are expected to spike growth, as more of the population moves toward cryptocurrency. Its anonymity makes crypto payments very popular among online gamblers.
Continued developments in virtual reality also figure to be integrated into the industry. Live dealer studios have taken a significant step in creating the actual casino experience online. The next step in this process would be the advent of VR technology.
New States and Online Casinos
More states adopting online casino gambling would also serve to create exponential growth in the bottom line among US betting sites. While 38 states currently offer legal and regulated sports betting, only six are delivering a similar online casino product.
New Jersey was one of the first states to legalize online casinos and remains one of the more liberal US states in terms of the number of competing brands and favorable gaming taxes. As of 2024, New Jersey hosts over 30 online casino brands and has a gaming tax rate of 15% on online casino revenue, making it (still) a competitive and attractive market for operators, such as new NJ casinos Stardust, Playstar and Wheel of Fortune. Whay NJ succeded to attract business?
In our opinion, New Jersey is like the Amazon of gambling, while New York has been discussing online casino legalization for almost four years with no progress. Pennsylvania has a 50%+ tax rate, and other states are considering increases (Ohio, for example), which we believe pushes players and businesses into the grey market. While it’s understandable that states want to maximize tax revenue, these high rates may have the opposite effect.
As well, it’s apparent that online gambling isn’t merely a fad among the US population. There was expected to be a positive impact caused by simple curiosity when legal restrictions that previously prohibited widespread online gambling were lifted in 2018 by the US Supreme Court. Since then, a strong gambling culture has developed across the USA and is offering no indications that it will be dissipating going forward into the future.
Challenging Reality for Online Gambling Growth in the USA
Despite positive forecasts about the growth of online gambling in the USA, the reality presents a contrasting picture. Several brands, including Superbook, TheScore, Unibet, Betway, Tipico, PointsBet, Wynnbet casino, and PlayUp, have either left or are planning to exit the market.
The US gambling industry is dominated by major players (Draftkings (DraftKings Inc), Fanduel, betMGM, PENN Entertainment, Inc and Boyd), unlike the UK market, which boasts over 1,000 online casino and betting brands. Marketing budgets in the USA focus on big media, making it challenging for affiliates like NJ.bet to attract customers organically via Google, which is increasingly providing AI-generated answers, and the new search engine SearchGPT is about to challenge the way people search. While the market is tough, there remains hope that future opportunities may arise, as suggested by positive reports.
