Online gambling in the United States - statistics & facts
When it comes to physical gambling locations, the United States is certainly holding a few aces. Hearing the name of Las Vegas alone is enough to conjure images of stacked poker tables, whirling slot machines, and opulent casinos. However, regarding the digital side of the industry, the rise of online gambling in the last two decades has not been as seamless in the U.S. as it has been in other parts of the world. In fact, only seven states had fully legalized online casino games and poker as of December 2023. On the other hand, state legislators have been more permissive with online sports betting, with 30 states having fully legalized it between 2018 and 2024. Nevertheless, in-person gambling in the U.S. has continued to dominate, with the gross gaming revenue (GGR) from commercial land-based gambling being over three-fold that of the GGR from online gambling in 2023.
Calls for legalization in other states, however, were noticeably subdued in 2024, with concerns about the cannibalization of the land-based market and the heightened risk of problem gambling looming large on the minds of legislators. This comes on the back of research that shows the higher prevalence of problem gambling among those who participate in online gambling compared to those who take part in-person. Nevertheless, with tax rates on iGaming reaching as high as 28 percent in states such as Michigan, the financial incentive to legalize online casinos might convince more and more states to follow suit in the coming years.
What are the most popular forms of online gambling in the U.S.?
During a 2024 survey, it was found that online sports betting was more popular in the U.S. than either online casino games or online slot machines. In total, 10 percent of U.S. adults said they took part in online sports betting. In the same survey, it was also revealed that online sports betting was also the form of gambling with the largest disparity between male and female participants, with 15 percent of men in the U.S. betting on sports online, while only six percent of women did. The popularity of sports betting in the U.S. is reflected in the market size of the online gambling industry in the U.S. increasing nearly ten-fold between 2018 and 2023, going from 2.5 billion U.S. dollars to close to 20 billion U.S. dollars.What does the future hold for online gambling in the U.S.?
Estimates from Statista Digital Market Insights predict the market size of the U.S. online gambling industry will continue to grow in the coming years, reaching nearly 40 billion U.S. dollars by 2029. Increased participation in all gambling forms in the U.S. between 2021 and 2023 and a higher level of acceptance surrounding gambling in recent years both suggest that the online gambling markets (in the current states that have legalized it) will contribute significantly to the overall growth of the industry.Calls for legalization in other states, however, were noticeably subdued in 2024, with concerns about the cannibalization of the land-based market and the heightened risk of problem gambling looming large on the minds of legislators. This comes on the back of research that shows the higher prevalence of problem gambling among those who participate in online gambling compared to those who take part in-person. Nevertheless, with tax rates on iGaming reaching as high as 28 percent in states such as Michigan, the financial incentive to legalize online casinos might convince more and more states to follow suit in the coming years.
