In recent years, the iGaming sector, consisting of online gambling and betting activities, has grown tremendously in the USA. With advancing technology and evolving consumer behaviors, experts predict the market will continue to expand rapidly in the coming years.

By 2027, Statista estimates the market could reach $31.09 billion, growing at a CAGR of 12.89%. Let’s look at some key growth drivers.

Increasing Legalization

Since 2018, several states, including New Jersey, Pennsylvania, Michigan, and West Virginia, have legalized online gambling. As more states regulate iGaming, new opportunities are unlocked.

Today, sports betting is legal in 30 US states, which includes Connecticut, Ohio, Maryland, Louisiana, Iowa, Kansas, Pennsylvania and others. The American Gaming Association estimates that more states could legalize online gambling within the next 3-5 years. With growing interest among US residents, the legalization of iGaming could be a game changer for the country.

As regulations ease up, iGaming operators invest heavily in advertising and customer acquisition, further fueling market growth.

DraftKings, BetMGM, FanDuel, and Caesars have been top spenders nationally on iGaming advertising. This intense competition for players will continue as more states legalize iGaming.

Demographic Shifts

Millennials and Gen Z, digital natives, and avid mobile users, are increasingly becoming the core target market for iGaming operators. Younger generations are generally more accepting of gaming as a form of entertainment. Marketing campaigns and tailored gaming experiences will draw in younger demographics.

Research shows that 42% of tech-savvy millennials gamble online. Besides, Gen Z will quickly shift towards casino sites with AR/VR technology in the coming days.

COVID-19 Impact

There was a boost in iGaming revenue during the COVID-19 pandemic. Many land-based casinos shut down temporarily due to safety protocols. However, it drove millions of new users to explore online casino games and betting for the first time. According to industry insights, these newer users will likely continue using iGaming services in the long run.

Moreover, the impact of the pandemic wasn’t temporary on the iGaming sector. The return of full-scale live events like sports, concerts, and conferences doesn’t appear to decelerate market growth significantly.

It indicates that iGaming isn’t just a short-term behavior change but part of a long-lasting digital transformation.

Advances in Technology

5G networks, improved payment processing, and innovations like in-play betting are enhancing the iGaming experience for users and opening up new possibilities. Augmented and Virtual Reality could take the experience to the next level.

Blockchain-based iGaming platforms are also emerging, providing benefits like transparent odds and provably fair gaming. Besides, cryptocurrency integration could enable faster deposits and withdrawals for players.

The ability to stream live sports events directly from phone apps is also a technological advancement engaging mobile users.

New Jersey – A Case Study

New Jersey provides an example of just how successful regulated iGaming can be. The state legalized the activity in 2013, becoming the biggest iGaming market in the USA.

In 2022, New Jersey’s iGaming revenue reached $1.3 billion. The state now accounts for over 1/3rd of all legal iGaming revenue in the country.

Sports betting has been the biggest contributor, generating $1.01 billion in 2021 revenue in the state. However, online slot game revenue grew 21.4% to $161.4 million, while casinos generated $2.4 million through poker games. Poker remains a small segment, but the genre could expand as player pools grow with more states legalizing them.

New Jersey’s success has been attributed to its population density, early mover advantage, and experience in regulating gaming activities. The state provides a model for others to follow.

Competitive Landscape

Competition between online operators also intensified as more states legalized iGaming. European gaming giant Entain partnered with BetMGM, merging its technology with MGM’s brand presence.

Similarly, international operators are looking to expand into the opening American market. These iGaming companies are making major investments in product development, marketing, and license acquisitions to gain market share across states. The casinos at have various gaming genres, live dealer sections, cutting-edge security, digital payment methods, and generous bonuses. These features entice several gambling enthusiasts in the US.

The biggest offshore iGaming providers in the USA currently include:

  • Bovada
  • Red Dog
  • Ignition
  • DuckyLuck

Challenges Ahead

While the future looks promising, there are also challenges ahead for the sector:

  1. Responsible gambling measures are crucial for mobile bettors. The easy access can lead to increased problem gamblers. Thus, operators should invest in identifying issues early and self-exclusion tools.
  2. There are concerns about geolocation manipulation, age verification, and identity fraud with app-based gambling. Maintaining rigorous regulatory standards as more states legalize is crucial.
  3. As a novel industry for many states, designing appropriate tax structures and license fees for iGaming activities can be complex. Policymakers need to strike a balance between revenue generation and business viability.
  4. Cybersecurity threats will likely rise as more gaming moves online, putting customer data at risk. Operators need robust systems to counter hacking, fraud, and cyberattacks.


The combination of technological advances, shifting consumer behavior, and pragmatic policies toward legalization indicate an industry poised for substantial growth in the coming decade.

For investors and businesses, the emergence of a legal iGaming market in the USA presents huge opportunities. Analysts predict iGaming could be a multibillion-dollar industry in America with a robust regulatory environment.