Who Will Win in The Online Gambling Industry in the US?

A thorough analysis of the US gambling market provides a detailed insight into the size, revenue, and growth forecast. A recently conducted survey highlights the significant challenges that need to be overcome, strategies that will help along the way, and the list of manufacturers that came on board to accompany the industry on its next leg of the journey.

The US online gambling industry was last valued at $47.57 billion in 2018 and the figures are expected to reach $94.37 within the next five years, sporting an average annual growth rate of 10.28%. Visit NJPunter for an updated list of current operators or NJ online casinos that accept PayPal.

Analyzing the Current Status of the US Online Gambling Industry

Before we begin, it’s crucial to remember that gambling is a game of luck and hence the results aren’t guaranteed. Online gambling involves a broad-spectrum including casino games like poker, blackjack, roulette, video slots, and related card games, apart from sports betting, and lottery.

Online gambling differs from physical casinos as the former lacks any sort of human interaction. Live casinos are the only exception. Online casinos follow a simple working principle similar to land-based casinos, and they offer a range of bonuses similar to physical casinos.

Online casinos are segregated based on three categories, including type, region, and platform. Following these regulations, the US market has four divisions, including online casino, online lottery, online betting, and mobile casinos.

The primary reasons for the increasing demand for online casinos are simple. While mass-market mobile penetration is the root cause, secondary causes include relaxation on deposit and withdrawal norms and the ease of access. Smartphone gambling, for instance, is responsible for introducing about 25% of young gamblers to the game.

Key Factors Driving Growth

1. Increased Legalization in the States – While sports betting is historically among the most regulated forms of gambling in the US, the historic Supreme Court decision overruling PASPA in 2018 boosted the growth of online casinos through the states. The volume of daily wagers multiplied across online platforms with an increasing number of people opting to place their bets on eSports, overseas football, and similar sporting events.

2. Decriminalizing Online Poker – Perhaps the most popular card game in the history of the United States, poker draws the maximum crowd after video slots. According to the recent statistics, the number of new poker players in the country increased by 255% since the lockdown and the industry predicts another 43% growth within the end of the year.

3. Growing Demand in Pennsylvania and New Jersey – After COVID-19 restrictions forced physical casinos to shut shop, the demand for an alternate solution jumped tenfold. Online casinos in NJ and PA stepped up to the challenge. And we all know what happened next! While revenue from physical casinos was down 61% in the first month of lockdown, online casino revenue was up by 65.7%. The tax collected filled state coffers, offering temporary relief to the exchequer.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes