Overall revenue from iGaming in the United States reached $9.5 billion in 2023. That’s a significant increase year on year since the practice was legalized in the country.
Growth has been significant over the last five years, and, at the moment, there is no sign of the sector slowing down. Even in harsh economic conditions, iGaming has succeeded, but how did that growth develop, and what does the future hold?
Global Development
Prior to the US Supreme Court’s decision to overturn an earlier PASPA ruling in 2018, iGaming was already an established and lucrative industry. Digital platforms had started to open up from the mid-1990s while sportsbooks and online casino real money outlets enjoyed a boom period at the start of the new millennium.
This was already a multi-billion-dollar industry before the United States fully came on board, but there is no doubt that the legalization of betting in the country has had a big impact on the global revenue that is being generated.
Prior to 2018, iGaming was developing at a steadier rate.
Contributory Factors
In countries such as the UK, iGaming has long been established as a powerful and productive industry. Sports betting was legalized here in the early 1960s, so the nations that make up the United Kingdom were ready to embrace digital sportsbooks and casinos when they first came online.
This is also a country where residents love their sports, and that will naturally help the betting side of iGaming. As interest in sport has grown, the industry has flourished.
A good example of this can be found in the early 1990s. At the start of the 1992/93 football season in England, the top clubs broke away from their organization and began to play in the Premier League.
Major investment followed, and the top clubs began to attract the biggest players in the sport. That, in turn, led to greater interest in the Premier League on a global scale.
This has a knock-on effect in other industries. TV companies earn more revenue through advertising and subscriptions as they broadcast live games to a growing audience. The sports betting industry has also benefited from increased revenue as interest in the EPL grows.
The English Premier League is just one example, but we’ve seen this type of development in other sports. The Indian Premier League in cricket was established in 2008 and it has helped to revolutionize the sport.
As interest grows amongst fans, associated industries such as the iGaming sector will enjoy increased revenue.
Heading Online
The biggest boost to the iGaming industry came with the digital revolution of the 1990s. Bookmakers started to come online from 1996 onwards, and we saw some established brands set up a web presence.
The advent of online sports betting and casino play also opened the door for a host of new operators. Many of the top brands that we see today were set up from the late 1990s onwards and have never owned a physical betting shop.
Those outlets have taken advantage of the growth in sport across the world. The last few years in particular have seen a boom period with the rise in TV broadcasting and new, major tournaments that we’ve referenced here.
While it may be true that some sportsbooks and casinos have closed, most have thrived in the time that they have been online. In addition, the fact that new operators set up a digital presence on a regular basis is a sign that the industry has room for future growth.
From 2020 onwards, the world has faced serious challenges, but iGaming has succeeded against an uncertain economic backdrop. The question is, will this trend continue?
The Future
The immediate future of the iGaming sector looks to be positive and, once again, the United States is a driving factor. While many states legalized the practice of betting from 2018 onwards, other regions were slower to take it up.
States such as North Carolina only legalized sports betting in 2023, and that means that many operators are ready to go online here in the New Year. Other states have yet to fully legalize the industry, but it seems certain that more will follow.
Further, significant growth is likely in the short term, thanks largely to the continued development across the United States. Beyond 2024, the picture for iGaming is less clear.
At some stage, every state that intends to open up to sports betting and casino will have done so. Similarly, every top sport will have a major competition in place that has boosted interest to a maximum level.
In short, we may reach a saturation point where iGaming begins to plateau. But, for the next 12 months at the very least, the indications are for further growth and increase in revenues.
