The gaming industry has been an unstoppable force throughout the United States of America and across the globe. Without the expediential growth of iGaming (online gaming), the industry was already grossing a higher revenue than the North American sports and movie industries combined. The market estimated to be valued at $173 billion could exceed $200 billion before 2023, which may double by 2027.
Physical brick-and-mortar gaming establishments will forever be a part of U.S. gambling culture. Still, the explosion of online gambling websites in the USA, like the ones listed on Gambling.com, are providing iGaming services anytime and anywhere using a mobile device or desktop is becoming extremely popular.
The Evolution of the iGaming Market
The first question most people will ask is, what is iGaming?
iGaming is the term often used when referring to the online gambling world. Gambling games have long existed for centuries, initially surrounding card games that later evolved into the modern-day games we partake in today.
Poker, roulette, slots, and blackjack would initially be accessible at physical land-based casinos. Still, with the evolution of technology and the internet, more and more people are utilising online casinos.
The value of online iGaming hasn’t reached the heights of its counterpart, but the estimations of its worth in 2023 are expected to exceed more than $90 billion.
Statista revealed in 2022 that the iGaming market value had reached $59 billion, a rapid growth that’s trending towards doubling its worth within the next twelve months.
The Legalisation of Sports Wagering Was Crucial
A significant progression in the iGaming industry came when the state of New Jersey succeeded in a court battle with PASPA (The Professional and Amateur Sports Protection Act). The victory meant that N.J. and countless other states could make sports betting legal in their state.
The Professional and Amateur Sports Protection Act prevented every state besides Nevada from offering a legal avenue to wager on sports games. When New Jersey won the battle in court (see here), more than twenty U.S. states introduced newly formed legislation to provide legal sports betting in their district.
With the legalisation of sports betting came the opportunity for states to provide online gambling for their citizens without using offshore or illegal bookmakers.
When using New Jersey as a prime example, you’ll notice the significant benefits in state tax revenue from when PASPA was overturned in 2018.
- June 18’ revenue – $3,458,668 ($337,077 paid in tax)
- January 19’ revenue – $18,777,582 ($2,532,619 paid in tax)
- August 21’ revenue – $25,210,341 ($6,5678,542 paid in tax)
- January 22’ revenue – $60,195,902 ($8,019,106 paid in tax)
As you can see, since the legalisation of sports betting was introduced, a gradual but significant rise in revenue for New Jersey played out. This doesn’t include the numerous other U.S. states that have received huge benefits from the iGaming industry.
While PASPA was huge for the industry and sports wagering, bill No. A2578 was a complete release of a thorn that was on the side of the overall gaming market. The bill restricted online gambling under the Unlawful Internet Gambling Enforcement Act and The Federal Wire Act.
When the bill passed, authorization and legal licences became simple and online gambling sites could flourish within the industry. The removal of underground and unregulated websites (more information about this) saw a complete rush of new businesses and consumers.
Caesars Entertainment was one of the first establishments to move into the market. BetMGM, Golden Nugget, and numerous other market leaders of today were quick to follow. Although some of these companies are still developing their product, the iGaming market in the United States will be well established in 2022.
A Helping Hand From COVID-19
The global pandemic forced us to remain in our households. Between the summer of 2020 and 2021, many U.S. states saw curfews and closures of many land-based establishments.
With the closure of casinos and sportsbooks, consumers looking to gamble or place sports bets had no choice but to use social platforms. An overall surge in streaming apps boomed, and the iGaming market was no different.
The iGaming industry turned its focusses to mobile optimization and mobile applications. Many people utilise television or mobile devices to pass the time. While casinos weren’t available, the possibility of enjoying the same delights of the casino from home was taken advantage of.
When pandemic restrictions were eased, and the brick-and-mortar casinos/sportsbooks reopened, the previously taught convenience kept the online market booming. Most of us were joyous at the return of normality, but some of the pandemic pressures gave gaming customers a new method to entertain themselves with much more convenience. Food deliveries, online shopping, and a plethora of other no-stress tasks removed the old school methods of putting in the added effort. The gambling markets offering online options saw the benefits.
Land-based casinos will forever have a position within the industry. Still, since the pandemic revealed an entirely new gaming world to many U.S. states, many people continue to enjoy the casino accessibility that can be achieved at home on a phone or laptop.
iGaming is Here to Stay
Technology advancements have propelled the iGaming industry into a new stratosphere. The gaming experience of 2022 provides services we could’ve never dreamt of. The alluring nature of a gaming website offers high speed, attractive interfaces, quick payouts, excellent and rapid customer service, and more options than ever before.
Live casinos deliver the atmosphere and enjoyment of a real casino live from customers’ homes. Almost every device that can connect to an internet connection can be used to play these games.
The United States has fallen behind in dominating the iGaming industry because European markets have long conducted business without laws preventing them. However, the U.S. continues breaking nationwide records, and we should expect to see the growth of the iGaming market continue to rise at a rapid rate in 2022 and beyond.
Last Updated: April 6, 2022