Overview of US Gambling Market

Huynh NguyenJune 27, 2022

Overview of US Gambling Market — Online casino concept. Laptop with roulette, slot machine, casino chips and playing cards isolated on black background. 3d illustration

US gambling is a huge industry that generates billions of dollars in revenue every year. In 2021, the U.S. Gambling revenue hit a record $53 Billion. This number was driven by land-based casinos and NJ online casinos (NJ is the state with the largest online gambling market) as well as betting on sports. The US gambling industry is also expected to grow further over time due to the legalization of online gambling in more states. Also, offshore sites are being blocked by Google Chrome and Mozilla Firefox browsers due to changes in their policies regarding online ads.

Gambling Is a Huge and Profitable Industry in the US

In the US, gambling is a huge and profitable industry. The following statistics are only a few examples of how large this industry has become:

In 2020, the US gambling market was worth more than $180 billion.
Revenue from sports betting in America increased by more than 20% from 2016 to 2017.
Americans spent over $10 billion on lottery tickets at Michigan online casinos and many others in 2017 alone—that’s about 35 cents for every man, woman, and child living in the country at that time!
The US gambling online market is expected to reach growth momentum at a CAGR of 12.47% from 2022 to 2026.

The US States Where Gambling is Legal

Online gambling USA is legal in only six states: Connecticut, New Jersey, Michigan, Pennsylvania, Delaware, and West Virginia. However, that doesn’t mean it’s prohibited in all the other states. The majority of Americans have been under the impression that online gambling sites in the USA are illegal everywhere in their country, but this is not true at all. There are some legal gambling states where you can play poker or bet on sports.

Let’s first examine what exactly makes a gaming site legal or illegal. In general terms: if a certain type of gambling activity has been legalized by the government in states that allow gambling, citizens are allowed to participate or enter contests; otherwise, they’re breaking federal law and can be punished accordingly. There are two main types of laws regarding this matter: criminal statutes (that make certain things illegal) and civil statutes (which let private actors sue each other).

Online Sports Betting and Online Casinos in the US

Online sports betting has been legal in some of the US sports gambling states for quite some time now, making it one of the most popular types of gambling Americans enjoy today.

COVID19, a pandemic that plagued the global market in 2020, has strongly affected the online gambling market in the United States. There was a significant drop in the economic growth rate due to a series of restrictions and regulations being imposed by several governments, in addition to the sudden outbreak of a new virus. Economic growth rates have fallen in the first quarter of fiscal 2021, resulting in a decline in the money supply chain in the market, which caused many consumers to save their money to sustain their basic needs. Ultimately, the pandemic has led to an increase in the United States online gambling market from the third quarter of the fiscal year 2021.

The majority (62%) of all sports bettors in America place their wagers on football, followed by baseball (14%) and basketball (12%). When it comes to casino games like slots or poker, however, Americans’ tastes vary greatly between the two sexes: men tend to prefer slots over poker while women generally prefer playing poker over slots.

US Gambling Laws Made to Protect Consumers

The US gambling laws are made to protect consumers. They require that operators tell players about the rules of each game and provide a way for them to verify prizes won. The laws also ensure that all games are fair and random, so there’s no advantage given to either the player or operator.

Setting the Competitive Scene

There are many domestic and international players in the market for online gambling in the United States, which is indicative of it being a mature market. There are several top companies in this sector, such as 888 Holdings PLC, William Hill PLC, Eldorado Resorts Inc, MGM Resorts International, and Cherry Gold Casino. Mergers and acquisitions are major players’ methods to expand their market share and enhance their brand portfolio to meet the diverse preferences of consumers.

Further, companies invest increasing amounts of money in R&D to create more user-friendly online games, as well as mergers and acquisitions in an effort to expand their brand portfolio. Additionally, companies are focusing on entering into strategic alliances in order to reach a wide range of markets and enhance their growth prospects.

Land-based Casinos in the US

Las Vegas is the largest gambling city in the United States. The largest casino in Las Vegas is the MGM Grand, followed by the Bellagio and Venetian. In 2018, there were approximately 45 land-based casinos operating in Nevada.

These included multiple large resorts with thousands of slot machines and table games spread over several floors:

Caesars Palace
Cosmopolitan Resort & Casino
Encore at Wynn Las Vegas Resort & Spa

The Issue of Offshore Casino Sites in the US

Offshore casinos, like those that operate in Costa Rica, are illegal in the US. The federal government has made it clear that it will not allow foreigners to run these sites and profit from American players. This is because such sites are outside of the jurisdiction of US laws and regulations.

In a move to protect its citizens from offshore gambling sites, the United States government has shut down internet casinos that do not have any connection with American businesses or individuals (and thus cannot be held accountable under US law).

Private companies have also stepped up efforts against offshore gamblers by taking legal action against them for playing games online without paying taxes on winnings or even registering as business entities in their home countries.

Conclusion

The US gambling industry is one of the largest in the world, and it’s not showing any signs of slowing down. In the United States, about 85 percent of adults have gambled once or more in their lives. With legalized sports betting, online casinos and poker rooms are becoming more common throughout online gambling legal states like New Jersey, Pennsylvania, Nevada, and Delaware. Ultimately players can enjoy their favorite games in states with online gambling without having to worry about being arrested by local law enforcement officials.

Read More: