United States Online Gambling Market By Type (Sports Betting, Casinos, Poker, Bingo, Others), By Device (Desktop, Mobile, Others), By Region, Competition, Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 9.87 BIllion
CAGR (2026-2031)	9.11%
Fastest Growing Segment	Mobile
Largest Market	Northeast
Market Size (2031)	USD 16.65 BIllion

Market Overview

The United States Online Gambling Market will grow from USD 9.87 BIllion in 2025 to USD 16.65 BIllion by 2031 at a 9.11% CAGR. The United States Online Gambling Market encompasses internet-based wagering activities, including virtual casino games, poker, and sports betting, facilitated via digital platforms such as desktop computers and mobile devices. The growth of this sector is fundamentally supported by the legislative expansion of state-level legalization and the widespread proliferation of high-speed mobile connectivity, which collectively ensure greater consumer accessibility. These structural drivers are distinct from transient consumer trends and provide a stable foundation for the industry's continued commercial development.

However, a significant challenge impeding broader market expansion is the complex regulatory fragmentation, where operators must navigate disparate compliance frameworks and tax structures across each jurisdiction. According to the American Gaming Association, in 2024, revenue from legal iGaming across seven active states increased by 28.7 percent to reach $8.4 billion. This substantial figure underscores the sector's financial vitality, yet the lack of a unified federal framework remains a hurdle for seamless multi-state operations and efficiency.

Key Market Drivers

The continuous expansion of state-level legalization and regulation functions as the primary catalyst for the industry by transitioning activity from illicit markets to taxable and protected revenue streams. As jurisdictions authorize mobile sports betting and online casino operations, the aggregate market size expands significantly owing to consumer confidence in regulated platforms. According to the American Gaming Association, February 2024, in the 'Commercial Gaming Revenue Tracker', annual commercial sports betting revenue reached a record $10.92 billion in 2023 which represented a 44.5 percent increase from the prior year. This growth trajectory highlights how legislative momentum directly correlates with increased gross gaming revenue as new markets launch and mature under approved regulatory oversight.

Strategic partnerships with major professional sports leagues further accelerate market penetration by integrating betting ecosystems directly into the fan experience through official sponsorships and media alignments. These collaborations enhance brand visibility and normalize wagering as a component of sports consumption which increases user acquisition rates during high-profile events. According to the American Gaming Association, February 2024, in the 'Super Bowl LVIII Betting Estimates', a record 67.8 million American adults were expected to wager on the championship game. This figure marks a significant rise in participation and demonstrates the efficacy of league-aligned marketing in driving volume. Additionally, substantial operator growth reflects this trend as according to DraftKings Inc., in 2024, the company reported fiscal year 2023 revenue of $3.67 billion driven largely by strong customer engagement and retention across these expanding verticals.

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Key Market Challenges

Regulatory fragmentation serves as a primary structural barrier to the seamless scaling of the United States Online Gambling Market. Operators are required to navigate a disjointed patchwork of state-specific mandates rather than a cohesive federal standard, which necessitates the creation of redundant compliance and legal teams for each jurisdiction. This lack of uniformity forces companies to divert capital toward administrative overhead rather than product innovation or user acquisition, effectively slowing the pace of market entry and expansion. The complexity is further compounded by the distinct tax obligations imposed by individual states, which creates unpredictable operating margins across the country.

According to the American Gaming Association, in the first nine months of 2024, commercial gaming operators paid approximately $11.66 billion in direct gaming taxes to state and local governments. This substantial financial contribution highlights the heavy fiscal weight placed on the industry by varying state-level tax regimes. Consequently, the absence of a unified framework not only increases the cost of doing business but also creates an uneven playing field that limits the potential for streamlined multi-state operations and overall commercial efficiency.

Key Market Trends

The mainstream adoption of micro-betting and granular in-play wagering is fundamentally altering the product consumption model by shifting user activity from static pre-match stakes to high-frequency, real-time events. This trend is powered by low-latency data feeds and machine learning algorithms that allow operators to price instant outcomes, such as the result of the next pitch or play, thereby transforming sports betting into an active, second-screen experience. This technological evolution is directly monetizing user engagement during live events, significantly expanding the volume of wagers placed per session. According to Genius Sports, March 2025, in the 'Fourth Quarter and Full-Year 2024 Results' release, revenue from the company's betting technology, content, and services segment increased by 29 percent year-over-year to reach $354.9 million, underscoring the escalating operator demand for real-time pricing capabilities.

Simultaneously, the market is undergoing a decisive demographic shift characterized by increasing female participation and engagement, driven largely by the surging popularity of women's professional sports. Operators are capitalizing on this trend by tailoring inclusive marketing strategies and expanding wagering markets for leagues like the WNBA, which serves as a primary entry point for this growing user cohort. This diversification of the player base is reducing the industry's historical reliance on male demographics and fostering a more sustainable, broad-based growth trajectory. According to bet365, December 2024, in the '2024 Year in Sports Betting' report, the operator recorded a 67 percent increase in global WNBA betting, a figure attributed to the rising profile of emerging star athletes and heightened media coverage of women's sports.

Segmental Insights

The Mobile segment currently represents the fastest-growing category within the United States Online Gambling Market, driven principally by widespread smartphone usage and enhanced network connectivity. This rapid expansion is supported by favorable legislative frameworks, as state authorities in jurisdictions like New Jersey and New York authorize remote betting operations to capture digital revenue. The resulting convenience of application-based wagering allows users to engage with sportsbooks and casino platforms efficiently from any location. Consequently, operators continue to prioritize mobile interface development, ensuring this segment remains the central engine of regional market progression.

Regional Insights

The Northeast United States currently holds the leading position in the domestic online gambling market, driven by early legislative adoption in key states such as New Jersey and Pennsylvania. This dominance is supported by robust regulatory frameworks established by agencies like the New Jersey Division of Gaming Enforcement, which fostered a secure environment for operator expansion. Furthermore, the region benefits from a dense population and the successful integration of digital platforms with existing land-based casino operations. These factors collectively ensure the Northeast remains the primary hub for sports betting and internet gaming revenue.

Recent Developments

• In October 2024, Caesars Entertainment launched Horseshoe Online Casino, a new iGaming platform designed to complement its existing digital offerings. Debuting in Michigan, this multi-brand strategy leveraged the legendary Horseshoe casino brand to attract seasoned players with a focus on high-limit slots, classic table games, and an integrated loyalty experience linked to Caesars Rewards. This product launch marked a significant expansion of the company's digital footprint, aiming to capture a specific segment of the online gambling market that values the heritage and distinct gaming style associated with the Horseshoe name. The platform was subsequently rolled out to other regulated states.
• In September 2024, Rush Street Interactive formed a strategic partnership with Playtech, a global gambling technology company, to integrate Playtech's content onto its BetRivers and RushBet platforms. This collaboration enabled Rush Street Interactive to offer a wide range of Playtech’s slots, table games, and live dealer experiences to players in multiple North American markets, including New Jersey, Michigan, and Pennsylvania. The deal was designed to enhance the operator's iGaming library with high-quality, immersive content, thereby improving player retention and differentiating its offering in the crowded online casino sector. The partnership highlighted the growing importance of diverse content portfolios in the United States market.
• In May 2024, DraftKings completed its acquisition of Jackpocket, a leading digital lottery app, for a total consideration of approximately $750 million. This strategic move allowed DraftKings to enter the massive United States lottery vertical and cross-sell its sports betting and iGaming products to Jackpocket's extensive customer base. The company integrated the lottery app into its ecosystem, aiming to enhance customer lifetime value and strengthen its position in the competitive online gambling market by diversifying its product portfolio beyond traditional sports betting and casino games. The acquisition significantly expanded the operator's reach and total addressable market across multiple jurisdictions.
• In February 2024, BetMGM announced a strategic partnership with X (formerly Twitter) to become the social media platform's exclusive Live Odds Sports Betting partner. This first-of-its-kind collaboration integrated BetMGM's betting odds and branding directly into the X platform, featuring a user interface that allows users to view real-time odds and click through to the BetMGM app or website to place wagers. The partnership aimed to leverage X's massive user base to drive engagement and acquisition, initially focusing on major professional sports leagues. By embedding betting data within social conversations, the companies sought to create a seamless link between sports content and wagering activities.

Key Market Players

• FanDuel Group
• Caesars Entertainment Corporation
• 888 Holdings PLC
• Kindred Group PLC
• William Hill PLC
• PENN Entertainment, Inc
• Boyd Gaming Corporation
• Churchill Downs Incorporated

By Type	By Device	By Region
Sports Betting Casinos Poker Bingo Others	Desktop Mobile Others	Northeast Midwest South West

Report Scope:

In this report, the United States Online Gambling Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• United States Online Gambling Market, By Type:

• Sports Betting
• Casinos
• Poker
• Bingo
• Others

• United States Online Gambling Market, By Device:

• Desktop
• Mobile
• Others

• United States Online Gambling Market, By Region:

• Northeast
• Midwest
• South
• West