In 2024, the U.S. commercial gaming sector set a new record with revenues totaling $71.92 billion, marking its fourth consecutive year of growth, as reported by the American Gaming Association (AGA).
This represents a 7.5% increase from 2023, driven largely by robust online betting and sports wagering, although there are indications that this growth may be slowing.
When tribal gaming revenue is included, which is expected to be reported later this year, the overall U.S. gaming revenue could approach $115 billion.
The fourth quarter of 2024 also broke records, with commercial gaming revenue hitting $18.62 billion, a 6.2% year-over-year increase.6
However, December experienced a 2% decline compared to the previous year, marking the first decrease in nearly four years due to lower-than-anticipated sports betting hold rates.
While traditional in-person gaming remains predominant, generating $50.32 billion (70% of total revenue) for the year, the online segment is growing swiftly, contributing $21.54 billion (30% of total revenue).
Key revenue figures include:
- Slot machine revenue at $36.06 billion (+1.6% YoY)
- Table game revenue declining to $10.14 billion (-1.7% YoY)
- iGaming revenue soaring by 28.7% YoY to $8.40 billion
- Sports betting revenue rising by 25.4% to $13.71 billion
The thriving industry generated $15.66 billion in state and local gaming taxes, reflecting an 8.5% increase from the previous year, supporting various nationwide public programs.
Of the 36 commercial gaming jurisdictions in the U.S., 28 set new annual revenue records. The states with the most significant growth in traditional casino gaming were Nebraska, Virginia, and Illinois.
Nebraska experienced a remarkable increase of 60.1%, Virginia saw a 32.0% rise, and Illinois had an 11.0% growth, all attributed to the opening of new casinos.
In the sports betting arena, Illinois overtook New Jersey to become the second-largest market in the U.S., achieving a growth rate of 21.1%. Massachusetts also saw a substantial revenue increase of 38.8%, moving it into seventh place.
Despite being the largest gaming market in the U.S., the Las Vegas Strip faced a revenue decline of 4.4% in 2024. In contrast, other markets in Nevada showed growth:
- Downtown Las Vegas improved its ranking from 17th to 13th largest U.S. gaming market.
- Reno-Sparks rose to become the 11th largest market.
- Boulder Strip maintained its position as the 10th largest market.
In total, Americans legally wagered $147.91 billion on sports in 2024, reflecting a 23.6% year-over-year increase, with 95% of bets placed online. Despite fluctuations in sportsbook hold rates, revenue grew by 25.4% to reach $13.71 billion.
The iGaming sector experienced explosive growth, reaching $8.41 billion, a 28.7% increase from the previous year, with key markets including:
- Pennsylvania ($2.71 billion, +28.5%)—the largest iGaming market in the U.S.
- Michigan and New Jersey both surpassed $2 billion in annual iGaming revenue.
- Rhode Island launched iGaming in Q1 2024, further expanding the market.
- Q4 2024 set a new record for iGaming revenue at $2.38 billion (+33.1% YoY).
Despite these positive trends, AGA President and CEO Bill Miller raised concerns about illegal gambling’s impact: “Illegal operators cost legal operators $44.2 billion in gaming revenue and shorted state governments by $13.3 billion in lost tax revenue.” He stressed the need for enhanced enforcement at both state and federal levels to address consumer confusion and regulatory loopholes.
Jason Giles, Executive Director of the Indian Gaming Association, noted that tribal gaming generated over $42 billion in gross revenues, benefiting tribal communities directly.
Chicagoland solidified its position as the third-largest gaming market due to new casino openings, while Resorts World New York City remained the highest-grossing casino outside Nevada.
Additionally, Rivers Casino Portsmouth in Virginia quickly became a top-grossing property within just two years of operation.
Looking forward, Missouri legalized sports betting at the end of 2024; however, operations have not yet commenced.
Industry leaders are also monitoring potential trade and tariff impacts on gaming equipment manufacturing.
Overview of Growth Potential in the U.S. Gaming Market (2025–2027)
The U.S. gaming industry is poised for substantial growth from 2025 to 2027, driven by technological advancements, evolving consumer preferences, and regulatory developments.
This analysis explores key factors contributing to the industry’s expansion during this period.
Technological Advancements
The mobile gaming segment is expected to continue its upward trajectory, fueled by technological innovations such as augmented reality (AR), virtual reality (VR), and the rollout of 5G networks.
With mobile gaming surpassing console and PC gaming in popularity, the market is projected to reach approximately $63.36 billion in 2025.
Cloud gaming will further enhance accessibility, allowing users to play high-quality games on various devices without powerful hardware.
This trend is anticipated to attract a broader audience, particularly among casual gamers.
Integration of Advanced Technologies
Integrating AR and VR into gaming experiences will likely enhance user engagement and retention.
As developers invest in these technologies, the gaming experience will become more immersive, attracting new players and retaining existing ones.
The anticipated growth in cloud gaming revenue, projected to reach $18.71 billion by 2027 with a CAGR of 44.09%, underscores the increasing consumer demand for flexible gaming options.
Market Expansion and Consumer Trends
The total number of gamers is expected to rise significantly, with forecasts suggesting an increase from 1.50 billion paying gamers in 2024 to 1.67 billion by 2027.
This growing player base will contribute to higher revenues across all gaming segments. The overall U.S. gaming market revenue is projected to reach $141.84 billion in 2025, reflecting a robust annual growth rate.
Diverse Gaming Experiences
The rise of hyper-casual games and free-to-play models will cater to a broader audience, driving participation among those who may not have engaged with traditional gaming formats.
The increasing popularity of live-streaming platforms like Twitch also indicates a shift towards community-driven experiences, which can enhance player loyalty and engagement.
Regulatory Environment
The continued legalization of sports betting across various states will significantly impact market growth.
As states like Missouri prepare to launch sports betting operations, the potential for increased tax revenues and consumer participation is substantial.
The sports betting market alone saw Americans wagering $147.91 billion in 2024, with expectations for further growth as more states join the fold.
Focus on Responsible Gaming
As the industry expands, there will be an increased focus on responsible gaming practices and regulatory compliance.
This emphasis protects consumers and enhances the industry’s reputation, potentially attracting more players who prioritize safe gaming environments.
Trends in Online Gambling Legality in the USA (2025–2027)
The landscape of online gambling legality in the United States is rapidly evolving, influenced by technological advancements, changing consumer preferences, and shifting regulatory frameworks.
As we look towards 2025 and beyond, several key trends are expected to shape the future of online gambling legislation across the country.
Increasing State-Level Legalization
One of the most significant trends is the continued push for state-level legalization of online gambling, particularly iGaming and sports betting.
According to this website, as of now, seven states have legalized online casinos, including New Jersey, Pennsylvania, and Michigan. However, many more states are considering similar legislation.
Notable contenders include California, Illinois, and New York, where discussions about legalizing online casinos are gaining traction.
The potential for states like New York to legalize online casinos could have a domino effect neighboring states.
If New York moves forward with such legislation, it may prompt states that currently prohibit online gambling to reconsider their stances due to the substantial revenue potential.
For instance, New Jersey’s online gaming revenue has already surpassed $2 billion annually, demonstrating the financial benefits that other states could realize.
The Impact of Economic Pressures
Economic factors will play a crucial role in the push for legalization. Many states are facing budget deficits and looking for new revenue sources.
Online gambling presents an attractive option for generating tax revenue without raising taxes on residents directly.
As states continue to grapple with financial challenges, the allure of tapping into the lucrative online gambling market will likely drive further legislative efforts.
States like Connecticut and Massachusetts have already included iLottery in their budgets for 2025, indicating a growing acceptance of digital gambling products.
This trend suggests that as lawmakers become more comfortable with online gambling formats, they may be more inclined to expand legalization efforts to include full-fledged iGaming.
Consolidation and Competition Among Operators
The U.S. online gambling market is witnessing consolidation among operators, which will influence future legislative trends.
Major players like FanDuel and DraftKings dominate the sports betting landscape, making it challenging for smaller operators to compete.
As these larger companies expand their market share, they may lobby for favorable regulations that streamline operations and reduce competition.
This consolidation could lead to calls for regulatory reforms that simplify licensing processes and reduce barriers to entry for new operators.
Additionally, partnerships between traditional casinos and technology firms may emerge to enhance digital offerings and improve customer engagement.
Such collaborations can help established brands transition into the online space more effectively.
Regulatory Challenges and Banking Issues
Despite the growth potential in online gambling, regulatory challenges remain a significant hurdle.
States are grappling with how best to regulate this burgeoning industry while ensuring consumer protection and responsible gaming practices.
Recent reports indicate that banks have been blocking payments related to online gambling transactions, creating obstacles for operators and consumers alike.
These banking restrictions highlight the need for more transparent regulations surrounding payment processing in the online gambling sector.
As operators like BetMGM and DraftKings face these challenges, there may be increased advocacy for legislative changes that facilitate smoother banking operations within the industry.
The Rise of Sweepstakes Platforms
Another emerging trend is the rise of sweepstakes platforms as an alternative form of online gambling.
These platforms operate under different legal frameworks compared to traditional online casinos or sportsbooks, allowing them to circumvent some regulatory hurdles.
Consumers becoming more familiar with these platforms may drive demand for broader legalization efforts.
Regulators must keep pace with these developments to ensure that all forms of online gambling are adequately monitored and regulated. The challenge will be balancing innovation with consumer protection as new business models emerge.
Evolving Consumer Preferences
Consumer preferences are also shifting towards more engaging and interactive gaming experiences. Younger generations, particularly millennials and Gen Z, are driving demand for mobile-friendly platforms that offer seamless user experiences.
As these demographics increasingly favor online gambling over traditional formats, state legislatures will likely respond by prioritizing legislation that supports innovative gaming solutions.
Moreover, as responsible gaming becomes a focal point for regulators, there may be calls for enhanced player protection measures across all forms of online gambling. This could include stricter advertising regulations or limitations on certain promotions aimed at vulnerable populations.
Conclusion
The future of online gambling legality in the United States from 2025 to 2027 is poised for significant transformation driven by state-level legalization efforts, economic pressures, consolidation among operators, regulatory challenges, and evolving consumer preferences.
As lawmakers grapple with how best to regulate this dynamic industry while ensuring consumer protection and maximizing tax revenues, they must remain adaptable to emerging trends.
The interplay between innovation in gaming technology and regulatory frameworks will define how quickly states can adapt to changing market conditions.
Ultimately, those states that embrace a proactive approach toward legalization while ensuring responsible gaming practices will likely reap the benefits of this rapidly growing industry.
The coming years promise to be pivotal as stakeholders navigate these complexities to pursue a more robust online gambling landscape in the U.S.
