US Online Gambling and Betting Market 2024–2033

Reports Description

As per the current market research conducted by the CMI Team, the US Online Gambling and Betting Market is expected to grow with a CAGR of 12.2% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 9,367.5 million. By 2032, the valuation is anticipated to reach USD 29,245.7 million.

The US online gambling and betting market involves a range of digital platforms and services that provide gambling and betting activities throughout the region. This market includes diverse forms of online gambling, such as sports betting, casino games, poker, lotteries, and other betting options that are accessible through digital platforms.

Licensed operators and platforms provide online gambling services, enabling individuals to engage in remote gambling and betting using devices such as computers, smartphones, or other internet-enabled devices. The market reflects the rising popularity of online gambling and the adoption of digital advancements like mobile apps, virtual reality, and blockchain, which enhance the overall gambling experience.

US Online Gambling and Betting Market- Significant Growth Factors

The US Online Gambling and Betting Market has several significant growth opportunities that are expected to drive its expansion in the coming years. These opportunities include:

• Mobile Gambling on the Rise: The increasing popularity of mobile gambling has been a significant driver for the market growth of the online gaming and betting industry. With the widespread adoption of smartphones and tablets, consumers now have the flexibility to enjoy gambling and betting anytime, anywhere. The availability of mobile apps and optimized websites have made it incredibly convenient for users to access their favorite games and place bets on the go.

• Expansion of the Sports Betting Market: The online sports betting market has experienced remarkable growth due to its legalization and rapid expansion. The integration of sports betting into mainstream media and the establishment of partnerships between sports leagues, teams, and gambling operators have greatly contributed to the increased activity in online sports betting.

• Enhanced Convenience and Accessibility for Consumers: The convenience and accessibility offered by online gambling platforms have attracted a larger consumer base. The ability to engage in gambling activities from the comfort of one’s home, access a wide range of games and betting options 24/7, and utilize secure payment methods have proven highly appealing to a growing segment of the population. This ease of access has led to increased participation in online gambling.

• Effective Marketing and Promotional Strategies: Online gambling operators have employed aggressive marketing campaigns and promotional activities to drive market growth. Through various strategies such as targeted advertising, sponsorship deals, loyalty programs, and enticing promotional offers, operators have successfully attracted and retained customers, contributing to the expansion of the market.

• Growing Disposable Income: The overall rise in disposable income among the population has provided individuals with greater financial means to engage in online gambling and betting activities. With higher discretionary spending, consumers are more inclined to participate in the market and increase their expenditure, fueling its growth.

Overall, these growth opportunities are expected to fuel the expansion of the North America Online Gambling and Betting Market in the coming years.

US Online Gambling and Betting Market- Mergers and Acquisitions

The US Online Gambling and Betting Market has seen several mergers and acquisitions in recent years. Some notable examples include:

• Flutter Entertainment acquisition of The Stars Group: In 2019, Flutter Entertainment, announced the acquisition of The Stars Group, the parent company of PokerStars and Full Tilt Poker. Flutter Entertainment acquired in an all-stock transaction valued at $6 billion, or an estimated $11 billion including assumed debt

• DraftKings acquired SBTech and Diamond Eagle Acquisition Corp: In 2020, DraftKings, merged with SBTech and Diamond Eagle Acquisition Corp, to form a special purpose acquisition company (SPAC). This allowed DraftKings to expand its offerings to include sports betting and online casino games.

• Caesars Entertainment’s acquisition of William Hill: In 2020, Caesars Entertainment announced the acquisition of William Hill, a well-known sportsbook operator. The acquisition strengthened Caesars’ position in the sports betting market and provided them with a strong online gambling platform.

These mergers and acquisitions have allowed companies to expand their product offerings, reach new markets, and strengthen their positions in the US Online Gambling and Betting Market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

US Online Gambling and Betting Market – Significant Threats

The US Online Gambling and Betting Market faces several significant threats that could impact its growth and profitability. Some of these threats include:

• Regulatory Challenges: Online gambling and betting are subject to various complexities and Regulatory Uncertainty: Despite the gradual legalization of online gambling in the US, regulatory uncertainty remains a significant threat. The regulatory landscape varies across states, with some imposing strict regulations or outright bans on online gambling. Inconsistent regulations and potential changes in legislation can create challenges for operators and hinder market growth.

• Competition from Illegal Gambling Sites: Illegal offshore gambling sites continue to pose a threat to the regulated online gambling market in the US. These unlicensed operators often offer attractive promotions and a wide range of betting options, attracting customers away from legal platforms. The presence of illegal gambling sites undermines consumer protection and tax revenue generation.

• Consumer Protection and Responsible Gambling Concerns: As the online gambling market expands, ensuring consumer protection and promoting responsible gambling practices become crucial. Issues such as underage gambling, problem gambling, and fraudulent activities can harm the reputation of the industry and erode public trust. Regulatory authorities and operators need to prioritize robust measures to address these concerns.

• Payment Processing Challenges: Payment processing remains a challenge for the online gambling industry. Financial institutions and payment processors may have restrictions or hesitations when dealing with gambling-related transactions due to regulatory concerns or compliance issues. This can lead to difficulties in depositing and withdrawing funds, hindering the overall user experience and deterring potential customers.

• Cybersecurity and Data Privacy Risks: The online gambling industry faces cybersecurity threats and data privacy risks. The storage and transmission of sensitive customer information make operators vulnerable to cyberattacks and data breaches. A significant breach can result in financial losses, reputational damage, and the loss of customer trust, affecting the overall market.

• Social Stigma and Public Perception: Despite the increasing acceptance of online gambling, there still exists a social stigma surrounding the activity. Negative public perceptions, misconceptions, and concerns about the potential for gambling-related harm can influence public opinion and impact market growth. Education and responsible gambling initiatives are necessary to address these concerns.

Overall, these threats pose significant challenges for the US Online Gambling and Betting Market and require companies to be vigilant in addressing them to ensure sustainable growth and profitability.

Report Scope

Category-Wise Insights

By Gaming Type:

• Casino Games: Online casinos include various games such as blackjack, slots roulette, poker, baccarat, and more. These games simulate the experience of playing in a physical casino and are quite popular among online gamblers.

• Sports Betting: Online sports betting allows users to place bets on various sports matches, such as football, basketball, baseball, soccer, tennis, and horse racing. Users can bet on the outcome of games, individual player performances, or even specific events in a match.

• Poker: Online poker platforms let players play in online poker games and tournaments against other players. These platforms provide different variations of poker, such as Texas Hold’em, Omaha, Seven-Card Stud, and more.

• Lottery: Online lottery platforms allow users to purchase tickets and participate in draws. These platforms often feature a variety of lottery games with different jackpot sizes and odds.

By Device Type:

• Desktop/Laptop: Many users use Traditional desktop and laptop for online gambling and betting. These devices offer a larger screen size, more processing power, and a full keyboard, providing a comprehensive and immersive gaming experience.

• Mobile Devices: The popularity of online gambling and betting has been on the rise, particularly with the increasing use of mobile devices like smartphones and tablets. The availability of mobile gambling apps and websites optimized for mobile use has made it convenient for users to access their preferred games and make bets while on the move. The portability and ease of use offered by mobile devices have played a significant role in the expansion of mobile gambling in North America.

US Online Gambling and Betting Market- Regional Analysis

The US Online Gambling and Betting Market can be analyzed regionally based on the market presence of key players.

• Northeast Region: The Northeast region, which includes states like New Jersey, Pennsylvania, and Delaware, has emerged as a significant center for online gambling. Notably, New Jersey has taken a leading role in legalizing and regulating various forms of online gambling, including casino games and sports betting. The region benefits from a high population density and proximity to major metropolitan areas, creating a large customer base and significant market potential.

• Mid-Atlantic Region: The Mid-Atlantic region encompasses states such as New York, Maryland, and West Virginia, and it is experiencing notable growth in online gambling. Although New York has not fully legalized online gambling, progress has been made, and its potential entry into the market could have a significant impact on the region. The Mid-Atlantic region benefits from its proximity to major cities and a strong interest in sports betting, which creates opportunities for market expansion.

• Midwest Region: The Midwest region, including states like Illinois, Michigan, and Indiana, has witnessed rapid growth in online gambling. Illinois recently legalized online sports betting and casino games, opening up a substantial market. Michigan has also emerged as a key player with a comprehensive online gambling framework in place. The Midwest’s large population, passionate sports culture, and regulatory advancements contribute to its growing prominence in the online gambling market.

• Southern Region: The Southern region comprises states such as Florida, Virginia, and Tennessee, which are gradually embracing online gambling. While some states in the region are yet to legalize online gambling, progress has been made in others. For example, Florida has considered legalizing online sports betting, and Virginia has already launched online sports betting and casino gaming. The region’s significant population size, robust tourism industry, and growing interest in sports create opportunities for market growth.

• Western Region: The Western region, encompassing states like Nevada, Colorado, and Oregon, boasts a well-established gambling industry. Nevada, with Las Vegas as its prominent hub, has long been synonymous with gambling. While online gambling in Nevada is limited to poker, other states such as Colorado have legalized online sports betting and are exploring further expansion. The region’s existing gambling infrastructure, appeal as a tourist destination, and strong interest in sports contribute to the growth potential of online gambling.

Competitive Landscape – US Online Gambling and Betting Market

The US Online Gambling and betting Market is highly competitive and is dominated by several major players, including:

• DraftKings: DraftKings operates as a sports betting and daily fantasy Sports Company that offers a wide range of sports betting options to its users.

• FanDuel: FanDuel is an American gambling company that offers sportsbooks, daily fantasy sports, horse racing, and online casino.

• BetMGM: BetMGM is a sports betting and gaming entertainment company, pioneering the online gaming industry. The company offers a combination of sports betting, casino games, and poker. BetMGM has expanded its presence in multiple states and is recognized as a strong player in the US market.

• Caesars Entertainment: With a strong reputation in the gambling industry, Caesars Entertainment operates online sports betting and casino platforms, offering a diverse range of gaming options to customers in the US. In addition to its online presence, Caesars Entertainment boasts an extensive network of land-based casinos across the country.

• 888 Holdings: As a global online gambling company, 888 Holdings has made its mark in the US market. Through its platform, it provides online casino games, poker, and sports betting options. To enter the regulated online gambling market, 888 Holdings has strategically partnered with several US casinos.

• Rush Street Interactive: Specializing in online sportsbooks and casinos, Rush Street Interactive is a prominent player in the US market. Its focus lies in delivering a user-friendly experience to customers. The company has established a strong presence in multiple states, including Pennsylvania, New Jersey, and Illinois.

• PointsBet: Originally from Australia, PointsBet has successfully expanded into the US market. It offers innovative sports betting opportunities, featuring its distinctive PointsBetting feature. PointsBet has obtained market access in various states and continues its efforts to expand its footprint.

BetRivers, Golden Nugget Online Gaming, MGM Resorts, William Hill, Barstool Sportsbook, FOX Bet, Hard Rock Online, Unibet, BetAmerica, Others.

These companies compete on the basis of service quality, pricing, target market, and marketing strategies to maintain their market share and gain a competitive advantage.

The US Online Gambling & Betting Market is segmented as follows:

By Gaming Type

• Poker
• Casino
• Social Gaming
• Lottery
• Bingo
• Fantasy Sports

By Device Type

• Desktops & Laptops
• Mobiles & Tablets