U.S. Online Gambling Market Size, Share & Trends Analysis Report By Type (Sports Betting, Casinos, Poker, Bingo), By Device (Desktop, Mobile), And Segment Forecasts, 2024 - 2030

U.S. Online Gambling Market Size & Trends

The U.S. online gambling market size was valued at USD 11.68 billion in 2023 and is expected to grow at a CAGR of 12.0% from 2024 to 2030. The growing use of mobile phones and other digital devices, coupled with access to the internet is creating growth opportunities for online gambling. Internet penetration was 92% of the United States’ total population in 2022. Moreover, legalization of online gambling, celebrity endorsements, and corporate sponsorships are also helping market grow in the country.

In 2023, the U.S. accounted for over 16.0% of the online gambling market. With the growing adoption of high speed internet technology, the number of digital devices’ users is also rising, which is having a direct impact on the market. In addition, Smartphones support AR/VR and artificial intelligence-powered applications, which help developers create immersive and interactive gambling applications. Many developers focus on solutions that support and assist gamblers, ensure the authenticity of gambling activities, and prevent fraudulent activities.

VR in gambling also creates simulation of surroundings. Users can interact with them realistically with specific hardware. VR lets gamblers interact with other gamblers and dealers and offers a more realistic gambling experience, better sound quality, and a realistic game design. Various online gambling platforms offer a free-play version of their games to attract new users. In-app or website advertisements are used to generate revenue in the free-to-play versions.

Another major factor driving the market is the adoption of blockchain technology. Many gambling applications and websites accept payments via blockchain. For instance, BitStarz, a gambling platform with approximately 4 million regular players, accepts Bitcoin. Gambling through cryptocurrency offers vast opportunities as they are fast transactions. With fewer regulations and restrictions for cryptocurrency transactions, they are now widely used by users in online gambling.

Market Concentration & Characteristics

The market is characterized by a high degree of innovation. Companies have introduced virtual reality (VR) to provide their customers with an enhanced gaming experience. Several gaming apps designed particularly for VR headsets have been launched. Moreover, the integration of AI in online gaming that predicts player preferences and helps companies reward their customers, accordingly, is also playing an important role in the market.

Levels of mergers and acquisitions are also high in the market. Key companies are involved in partnerships and acquisitions to develop their offerings and attract new users. For instance, in 2019, Flutter Entertainment plc acquired The Stars Group for nearly USD 11 billion to create the largest online betting company.

Impact of regulations is also high on the market. The Unlawful Internet Gambling Enforcement Act of the U.S. does not specifically make online gambling illegal. However, it made it illegal for banks and financial institutions to initiate transactions between gambling sites and U.S. residents. Moreover, many companies are focusing on expanding their online gambling business in the U.S. market when the Supreme Court lifted the ban on sports betting in 2018.

End-use concentration is also high in the market. Online gambling users are increasingly shifting from desktop computers to tablets and smartphones. The growing prominence of social media sites as a platform for accessing online gambling games is attracting more users to these games.

Type Insights

Based on type, the market can be segmented into poker, sports betting, bingo, and casinos. The sports betting segment dominated the market with the largest revenue share of approximately 50.0% in 2023. According to the insights published by Uplatform in 2021, a sports betting and online casino operator, eSports betting recorded a 170% rise in 2021. In addition, rising disposable income has also increased consumer expenditure on sports betting, contributing to segment growth.

The casino segment captured the second largest share of the market. The increasing popularity of social gambling and gambling apps is the major factor driving the segment's growth. Moreover, the increasing adoption of mobile devices is also encouraging vendors to focus on developing social gambling games. The segment growth can also be attributed to the increased spending capability of the population on gambling. The increasing sales of smartphones are also encouraging vendors to offer casino games through online platforms.

Device Insights

Based on devices, the desktop segment accounted for the largest revenue share in 2023. This is due to the benefits provided by desktops, such as easy accessibility, etc. Moreover, the large display of desktops offers users a superior and intuitive experience. The user-friendly interface of the device and navigation in between games encourage users to opt for desktops. Performance factors like storage capacity, sound volume, and picture quality can also be adjusted on desktops.

The mobile segment is expected to witness the highest CAGR during the forecast period. Mobile gambling offers players an opportunity to play anytime and from anywhere. Moreover, rapid technological advancements in mobile devices are expected to offer an improved gaming experience to users. Mobile devices offer better experiences at relatively lower costs.

Key U.S. Online Gambling Company Insights

Some of the leading companies in the market include 888 Holdings Plc., Bally’s Corporation, Bet 365 Group Ltd., and Betsson AB.

• 888 Holdings is a global sports betting and gambling company that owns brands such as 888casino, 888poker, 888sport, Mr Green, and William Hill. In 2018, the company expanded its U.S. online poker business by becoming the sole owner of the All American Poker Network.

• Bet 365 offers services in online gambling and online betting platform, which deals with American football, baseball, basketball, bowls, boxing, cricket, cycling, etc., and live casino games such as roulette, blackjack, baccarat, etc.

Entain Plc., FireKeepers, and Flutter Entertainment Plc. are some other companies in the U.S. online gambling market.

• Entain offers online gambling and betting activities from mobile and online operations. The company owns many brands, including Bwin, Ladbrokes, Coral, etc.

• Churchill Downs Incorporated is a multi-American-state-wide company. It is a publicly traded company with racetracks, casinos and an online wagering company among its portfolio of businesses.

Recent Developments

• In January 2023, Entain announced the acquisition of BetEnt B.V., an online betting and gaming website. The acquisition is aimed at providing customers with various product offerings.

• In October 2022, Betsson AB acquired 80% shares in KickerTech Malta Limited, a B2B sportsbook operator. This acquisition helped Betsson to grow its B2B client base and provide additional scalable technology.

U.S. Online Gambling Market Report Scope

U.S. Online Gambling Market Report Segmentation

The report forecasts revenue growth at country level and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the U.S. online gambling market report based on type, and device:

• Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Sports Betting

  • Casinos

    • iSlots

    • iTable

    • iDealer

    • Other iCasino Games

  • Poker

  • Bingo

  • Others

• Device Outlook (Revenue, USD Billion, 2018 - 2030)

  • Desktop

  • Mobile

  • Others