FFGrowing iGaming Markets In TFhe USA

Long ago, gaming was restricted to mortar and brick houses before the dot-com era. But today, from your cozy living room in Las Vegas or Ohio, with your mobile device and the click of a few buttons, you can enjoy the same excitement with even more attractive rewards. This is all thanks to the good fortune that is iGaming.

Over the years, the United States iGaming market has become a booming industry worth billions of dollars following a 2011 Supreme Court ruling that granted each state autonomy to determine the legal status of internet gaming within its borders. 

As of today, 29 states in the United States have embraced iGaming in some form, from the grand canyons of Arizona to the snow-capped mountains of Wyoming. And no one is prepared to miss out on the rush, even as many more states continue to join the constantly growing ranks. 

In this article, we’ll explore the leading states shaping the future of the U.S. iGaming industry.

States Growing Faster With iGaming in The United States.

A market analysis conducted by Modor Intelligence revealed exciting statistics about the prospects of iGaming in the US, with the market size estimated at USD 5.12 billion in 2024 and expected to reach an astonishing 10.98 billion by 2029, growing at a CAGR (Compound Annual Growth Rate) of 16.52% during the forecast period. 

This growth is a consequence of legalizing and regulating responsible online gaming activities in several states. Currently, six states are leading the race with intriguing growth trajectories in the industry. They are Pennsylvania, New Jersey, Delaware, Michigan, West Virginia and Connecticut.

Let’s delve in to see what these states are doing differently:

• New Jersey

The state is famous not only for its incredible theatrical landscape but also for being the pioneer of iGaming in the US, launching online games as early as 2013 and online sports in 2018. The Garden State boasts a mature and competitive market with more than 20 online operators offering a variety of games. 

New Jersey also benefits from its proximity to New York and Pennsylvania – two large markets that drive cross-border traffic. In November 2023, New Jersey recorded a whopping $165.4 million in iGaming revenue, a 16.8% growth compared to November 2022. It is also interesting to note that New Jersey’s iGaming market share alone was 28.2% of the total U.S. iGaming revenue in November 2023.

• Michigan

Michigan is one of the fastest-growing iGaming markets in the US, launching online gaming and sports in January 2021. The Great Lake State has a population of nearly 10 million people and a rich gaming history, with more than 20 iconic onsite gaming facilities where you can enjoy a galaxy of exciting games.

 Michigan’s prospect in the iGaming industry is evident in its December 2023 iGaming gross receipts, which totaled $181.4 million, up a 15.9% increase compared to November and the highest to date. Michigan’s main challenge would be to sustain its high growth rate and market share as more states enter the iGaming space.

• Pennsylvania

Looking for the most diverse and one of the largest iGaming markets the United States has to offer? Pennsylvania is the answer. The Keystone State, with nearly 13 million residents, is prided for its strong gaming culture and availability of appealing gaming facilities. The 2021/2022 fiscal year was fascinating for the state iGaming industry as it marked the beginning of its incredible growth. Overall revenue from games surpassed $5 billion for the first time, with tax revenue hitting over $2 billion.

• West Virginia

The Mountain State may have a relatively small population, but it is not to be underrated as far as iGaming is concerned. Interestingly, West Virginia was one of the first states to legalize iGaming within its borders, even as much larger states like Ohio took the back seat. 

The state’s revenue figures are also impressive, with total wagers climbing to a high of $361.4 million in December 2023 – an increase of 27%. iGaming wagers also rose by 36% compared to the previous year, totaling $308.2 million. West Virginia’s consistent growth in iGaming revenue showcases its active participation in this rapidly evolving industry.

• Connecticut

Connecticut began its iGaming journey in May 2021 when Governor Ned Lamont signed the bill to legalize online gaming on Connecticut online casinos and sports  through the state’s resort . The legislation received the unanimous support of legislators in both chambers of the state’s general assembly.

In terms of revenue, Connecticut’s iGaming market has been performing well. The state’s iGaming revenue stepped over the billion-dollar mark in December 2023 to hit an impressive $1.003 billion. Though among the new entrants into the industry, Connecticut is making incredible strides toward providing a 21st-century gaming experience for its residents.

• Delaware

Delaware is a small state with less than a million residents, but its growth in the iGaming market has been one of the most incredible so far. The state had a robust performance in 2023, with a 40% increase in total wagers and an impressive 51% increase in iGaming wagers recorded by the state’s three licensed iGaming operators.

This enabled the state to hit a mark of $44.1 million in revenue for the month. And, while the revenue may be lower than in other states, the leap in growth and revenue gap from month to month promises it is one to watch.

More States Expected to Embrace iGaming in 2024

The US iGaming landscape is gradually evolving, and several states are expected to embrace this exciting industry in 2024. New York lawmakers, for example, are making moves to push for legal iGaming in the Empire State.

In Connecticut, after legalizing iGaming, the state is now on its way to seeking the approval of the Bureau of Indian Affairs to amend its compact agreement with tribal operators. Other states, like Rhode Island, are also expected to join the industry eventually.

Frequently Asked Questions (FAQs)

How Does iGaming Regulation Work in The US?

iGaming regulation in the United States operates on a state-by-state basis, giving states the freedom to determine the status of iGaming legalization within their borders.

How Much Revenue Does The US iGaming Industry Generate Annually?

Annual revenue varies year by year as more states join the industry. In 2023, iGaming revenue stood at a mouthwatering $5.02 billion.

A Bright Future Ahead For The US iGaming Market

iGaming is a dynamic and evolving industry that offers exciting opportunities for operators, customers, and regulators alike. As more states join the iGaming space, we can expect more growth, diversity, and innovation in the US gaming market.