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Booming US Online Casino Market Not Slowing Down

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The US online gambling market, encompassing online casinos, is already soaring, and this may just be the beginning.

With technological advancements, expanding legalization, and changing consumer preferences paving the way, 2025 is expected to be a landmark year for the industry.

Gross revenue from the seven legal online casinos in the U.S. was recorded at slightly over $898 million in May, reflecting a 33% increase from May 2024’s total of almost $675 million.

Forecasts predict a compound annual growth rate (CAGR) of 11.6% from 2024 to 2029.

This growth rate will add roughly $54.8 billion in market value over this period. Some analyses even suggest a CAGR of 12.1%, specifically for 2025 to 2030. These figures highlight the robust expansion anticipated in the sector, driven by increased participation and innovation.

States Where You’ll Find Legal Online Casinos

Online casinos are fully legal and regulated in the following seven U.S. states:

  • Rhode Island (the newest addition, legalized in 2024)
  • Delaware
  • Pennsylvania
  • New Jersey
  • West Virginia
  • Michigan
  • Connecticut

Pennsylvania stands out as the leading state, generating $289 million in May gross revenue, a nearly 35% increase from the previous year.

Each of these states has its own regulatory framework, and major operators, such as Caesars Palace Online Casino, BetMGM Casino, and DraftKings Casino, are active in these markets.

Market Drivers Fueling Growth

Mobile Gaming Revolution

One of the main drivers propelling the online casino market forward is mobile gaming.

The widespread adoption of smartphones and tablets has made online gambling more accessible and convenient than ever before. Players can now enjoy their favorite casino games on the go, contributing significantly to the market’s growth.

Rise of Live Dealer and Esports Betting

Live dealer casinos and esports betting are changing the landscape of online casinos. One of the most recent launches of online dealer games was Caesars’ live dealer NBA blackjack.

They are attracting new demographics and offering exciting, interactive experiences. As more users gravitate towards these offerings, they contribute to the industry’s overall expansion.

Legalization Expanding the Online Casino Market Base

Legalization plays a critical role in the market’s growth. More states are permitting online casino gaming, widening the market base.

This trend of expanding legalization opens new avenues for both operators and consumers, enhancing the viability and appeal of online gambling.

Several states are actively considering or have pending legislation to legalize online casinos. The most notable among them are:


The fate of the online casino bill in Maine is now in the hands of Governor Janet Mills. Image Credit: Camille Fine, Camille Fine / USA TODAY NETWORK

Other states showing potential or ongoing discussions for legalization include Colorado, Indiana, Iowa, Maryland, and Virginia, though some of these have shelved the issue for 2025.

Nevada allows for online casino gaming under its laws, but only online poker is currently authorized and operational.

Technological Advancements

Technological innovations, like the live studio slots at the Tropicana, are at the heart of the online casino industry’s evolution.

Developments in artificial intelligence, blockchain technology, and improved payment solutions are enhancing user experience and security. These innovations make online gambling more attractive and trustworthy for users, thus driving further adoption.

User Base and Engagement

The average revenue per user (ARPU) in the US gambling market is expected to reach $594.13 in 2025.

This significant figure underscores the high level of engagement anticipated among users. Furthermore, user penetration is projected to hit 58.8%, indicating a broad acceptance and participation level across the country.

Record Year for Online Casinos Expected to Continue

2025 is poised to be a record-breaking year for the US online casino industry.

With double-digit growth projected, increasing user engagement, and expanding state-level legalization, the sector is set to thrive. As technology continues to evolve and more states embrace online gambling, the market’s future looks brighter than ever.

Whether you’re a player, operator, or industry observer, the expected growth presents intriguing opportunities and developments worth watching.

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