The iGaming industry has grown tremendously worldwide, and the United States has become a pivotal market in this evolution. As more states embrace legal online gambling, the industry continues to expand, presenting stakeholders with a mix of opportunities and challenges.
The State of iGaming in the US
iGaming, which includes online casino games, poker, and sports betting, has experienced a transformative shift in the US over the past decade. The repeal of the Professional and Amateur Sports Protection Act (PASPA) in 2018 paved the way for states to individually regulate sports betting. Since then, many states have chosen to legalise not only sports betting, but also broader iGaming operations.
Up until 2025, more than 30 states will have legalised some forms of online gambling, with leaders like New Jersey, Pennsylvania, and Michigan setting the standard. These states have shown how robust regulatory frameworks and partnerships between operators and local stakeholders can foster thriving ecosystems that benefit players, governments, and businesses. For instance, New Jersey’s iGaming revenue surpassed $1.6 billion in 2024, highlighting the sector’s tremendous potential.
However, the regulatory landscape remains fragmented. States like Texas and California, despite their significant populations and potential markets, have yet to pass comprehensive iGaming legislation. This patchwork regulation creates complexity for operators seeking to expand nationwide, as they must navigate differing legal, tax, and technological requirements.
Opportunities in the US iGaming Market
Market Growth Potential
The US is poised to become the largest iGaming market globally, driven by its massive population, technological adoption, and evolving regulatory frameworks. Analysts predict that the market could surpass $93 billion by 2030, with new states coming online and existing ones expanding their offerings.
Innovation and Technology
Emerging technologies like artificial intelligence (AI), blockchain, and virtual reality (VR) are reshaping the iGaming experience. Personalised gaming experiences, secure transactions, and immersive gameplay are becoming industry standards, appealing to tech-savvy American consumers. Companies leveraging these technologies can gain a competitive edge and foster customer loyalty.
Economic Benefits
States that have embraced iGaming have reaped substantial economic rewards. In addition to tax revenue, the sector generates jobs, from IT and customer support roles to marketing and compliance positions. For instance, Pennsylvania’s iGaming industry contributed over $150 million in tax revenue in 2024, funding public programs and infrastructure projects.
Challenges Facing iGaming in the US
Regulatory Hurdles
The primary challenge for iGaming in the US is regulatory inconsistency. The lack of federal oversight means that operators must adapt to state-specific rules, which can be costly and time-consuming. Moreover, the legislative process in many states is slow, delaying market entry and revenue potential.
Responsible Gambling
As the industry grows, so does the need for responsible gambling initiatives. Irresponsible gambling poses a significant risk, both ethically and reputationally. Operators must invest in robust tools and programs to promote responsible play, such as self-exclusion mechanisms, spending limits, and access to support services. Failure to address this issue could lead to stricter regulations and public backlash.
Market Saturation
While growth potential remains high, the US iGaming market could face saturation in mature states. With numerous operators vying for customer attention, the competitive landscape becomes fierce, driving up marketing costs and reducing margins. Companies will need to differentiate their offerings and focus on customer retention to sustain profitability.
Emerging Trends to Watch
Cross-State Collaboration
As more states legalise iGaming, there is growing interest in interstate agreements. Cross-state poker networks and shared liquidity pools, similar to those seen in Europe, could significantly boost player engagement and revenues.
Esports Betting
The rise of esports presents a new frontier for iGaming. Younger demographics are increasingly drawn to competitive gaming, and integrating esports betting into iGaming platforms could unlock a lucrative market segment.
Mobile Gaming Dominance
Mobile-first gaming continues to dominate, with smartphones accounting for the majority of online gambling activities. Optimised apps and mobile-responsive platforms are critical for operators looking to capture and retain this audience.
Conclusion
The iGaming industry in the US is at a pivotal point, which is characterised by rapid growth and significant potential. While the opportunities are vast, stakeholders must navigate regulatory complexities, promote responsible gambling, and adapt to emerging trends to thrive in this competitive landscape. As more states embrace legalisation and innovative technologies reshape the gaming experience, the US iGaming market is poised for a dynamic future.