The online casino sector in the US has seen marked growth in the past few years. With more and more states legalizing betting online, huge sums of revenue have been generated, with further growth forecasted.
In this guide, we review the performance of the US online casino sector to date. We explore the reasons for its growth, as well as the key current metrics. And we turn to the future to examine what further developments could impact performance.
Let’s begin with some key facts on the US online casino sector.
Key Facts on the US Online Casino Sector
Here are some of the most significant facts and figures on the US online casino sector
- 35 US states currently allow, or are set to allow, online gambling, including New York, Philadelphia, and Florida
- Around 11% of Americans bet at least once per month, whether online or in a physical casino
- The current market value of US online gambling is around $9.3 billion, however, this figure includes online sports betting as well as casinos
What Games do People Play in Online Casinos?
Part of the growth in popularity of online casinos is the improvements made by gambling firms on their mobile and computer platforms. In addition, some firms, like Vulkan Vegas, have partnered up with leading computer game developers, like Konami, to produce more entertaining and immersive games.
Currently, in the US, it’s possible to play baccarat, roulette, poker, blackjack, and a host of slots in online casinos. Also growing in popularity are live casino games, which can offer a more immediate gaming experience.
The Financial Performance of the Online Casino Sector
The US online casino sector is still relatively young. Legalization properly kicked in around 2017, and it took some time for firms to move in and establish themselves. Some states, as discussed below, still refuse to legally acknowledge online gambling.
Since the change in law, the sector has consistently and steadily improved its revenue. In 2021, the sector achieved its most notable results. The total figure was $3.7 billion, which is a significant sum considering the industry was opened up just four years prior.
In 2023, the total revenue is set to hit $6.5 billion, which is nearly double the amount from just two years before and a $1 billion increase compared to 2022.
It should be noted that not all states in which online casinos are legal have posted consistently positive figures. Sometimes, the month-to-month growth has been negative. Suggestions have also been made that the market could be slowing down, though there are many forecasts, which we’ll discuss below, that suggest otherwise.
It’s important to remember that these markets are still new, and more are opening up. This can lead to spikes and fluctuations in the revenue generated in the sector. There are also seasonal fluctuations at play within the sector, with revenue generally falling in the summer months.
What Does the Future Hold for the Online Casino Sector in the US?
The future of the online casino sector in the US looks set to continue to increase. Between 2023 and 2028, the market value is set to improve to around $16 billion—nearly doubling in size.
One of the biggest factors behind this predicted growth is a greater adoption of smart devices and devices capable of running software like casino apps.
Another factor contributing to growth is the adoption of cryptocurrencies like Bitcoin. Crypto-only casinos have now sprung up and don’t show any signs of slowing down.
Other external factors, like the coronavirus pandemic, also contributed to the growth of the online casino sector. With brick-and-mortar establishments closed, players were forced to try online apps. This has led to more online visitors, some of whom have found the online experience enjoyable enough to return.
However, success could be impacted by the complex legal position in the US with regard to online gambling. With the rapid development of the sector, legislation is lagging behind. While some states have embraced online evolution, others have taken a firm stance on it.
For example, in both Hawaii and Utah, gambling in all forms is illegal. Online gambling is also illegal in the following states
- North Dakota
- South Carolina
- South Dakota
If the legal position changes in these states, as well as others that have pending legislation in place, the predicted performance of the online casino sector could be even greater.
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