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Understanding the US iGaming Landscape unveils a period of remarkable growth driven by technological advancements and regulatory changes. The iGaming industry in the United States has experienced remarkable growth in recent years, driven by technological advancements and regulation changes. As more states embrace online gambling and sports betting, businesses and players alike face new opportunities and challenges. In this guide, we will delve into the current state of iGaming in the US, examining the regulatory landscape, revenue trends, and the impact of mergers and acquisitions on the industry’s evolution.
I. The Resurgence of iGaming in the US
In recent years, the iGaming industry has grown remarkably in popularity, with its resurgence largely attributed to the transformative impact of the COVID-19 pandemic coupled with rapid technological innovations. As underscored by comprehensive analysis from Grander View Research, the convenience, exhilaration, and unique experiences offered by online gambling have not only captured but also captivated a burgeoning community of players. This substantial shift in consumer behaviour has translated into a pronounced upswing in revenue generation, painting a vivid picture of the industry’s dynamic transformation.
Ohio launched sports betting on January 1, 2023. Image Source © Ohio Bobcats
II. Regulatory Efforts and Legalization
States have been actively working on legalizing online gambling and iGaming, resulting in a varied regulatory landscape. For example:
California:
California is highlighted as a significant potential state for expansion, but the recent ballot result suggests no progress on sports betting legalization for at least four years.
Ohio:
Ohio launched sports betting on January 1, 2023. It is mentioned as one of the states contributing to new state launch forecasts.
Massachusetts:
Massachusetts launched sports betting on January 31, 2023. Similarly to Ohio, it represents a portion of the anticipated growth from new state launches.
Michigan:
Online gambling gross receipts in Michigan reached $185.8m in May, an improvement on last year but the second consecutive month of decline.
According to Gambling Insider, the gross win from US sports betting will climb to $23.2 billion by 2030. Within this projection, a notable 57% of the growth stems from states where sports betting is already authorized. In comparison, the remaining 43% originates from states anticipated to legalize sports betting in the forthcoming years.
In states where sports betting is legal, the present pace of online sports betting’s gross win relative to the Gross Domestic Product (GDP) stands at approximately 0.065%. Notably, this figure experienced a peak of around 0.075% during the fourth quarter of 2021, attributed to the inherent seasonality of the industry.
This percentage aligns reasonably well with the established average standards when juxtaposed with various significant European markets.
According to Gambling Insider, the gross win from US sports betting will climb to $23.2 billion by 2030.
Graph Source: Gambling Insider.
III. The Rise of SPACs in the iGaming Industry
In 2018, the repeal of the Professional and Amateur Sports Protection Act (PASPA), an act which has been in place since 1992 and acted as a federal ban on sports betting, opened the door for gaming companies to explore various routes to the public market. This shift has now placed the responsibility on individual states to decide whether to legalize and regulate sports betting, similar to their existing authority over various types of non-sports gambling like Casino gaming.
Special Purpose Acquisition Companies (SPACs) have emerged as a popular option due to their ability to facilitate quicker access to public funding and more transparent revenue projections. According to an article by the Legal Sports Report, notable gaming companies that have gone public using SPACs include DraftKings, Genius Sports, and Golden Nugget Online.
IV. The Industry Reset: Challenges
As the US iGaming landscape evolves, challenges arise that require careful consideration. Operators’ shift towards emphasizing repetitive wagering opportunities over hold margin, as discussed by Gambling Insider, can lead to operational and strategic complexities. This presents the industry with a pivotal challenge to adapt strategies to optimize revenue and customer engagement while maintaining responsible gaming practices.
V. The Industry Reset: Opportunities
Amid challenges, the evolving landscape also presents exciting opportunities for growth and innovation. Operators can capitalize on exploring new avenues, such as the adoption of Affiliate Marketing tracking platforms to enhance player experiences and expand their customer base. By embracing these opportunities, businesses can position themselves for success in the dynamic US iGaming market.
VI. The Ongoing Evolution of the US iGaming Landscape
As more states consider legalizing online gambling and sports betting, the US iGaming industry will continue to evolve rapidly. The regulatory framework will play a crucial role in shaping the opportunities and challenges for businesses in the space. For Operators and players, staying informed about the latest developments and seeking legal guidance, as recommended by iGaming Business, will be essential to navigate the dynamic landscape successfully.
Conclusion
The US iGaming industry is on a trajectory of remarkable growth, presenting significant opportunities for businesses and players alike. Understanding US iGaming regulations, online casino regulations in the US, and licensing requirements will be essential for operators to thrive in this dynamic landscape. As the market evolves, businesses must adapt and explore iGaming opportunities that align with their strengths. Partnering with the right Affiliate Marketing Platform can provide a competitive advantage and unlock new avenues for growth in the burgeoning US iGaming market.
Team NetRefer
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Our team of attendees include Account Management Manager Amanda Camenzuli, Account Manager Rafael Nunes, Global Acquisitions Manager David Buhagiar, and Senior Regional Acquisitions Specialist Michael Saliba. We are eager to connect with you and learn more about your business, aiming to empower your company with NetRefer’s cutting-edge Affiliate Marketing Program.
Join them from the 19th to the 22nd of September at Fira Barcelona Montjuïc to discuss your Affiliate Marketing needs or simply have a chat.
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