iGaming Business in the United States
The year 2021 served as a dynamic period for the different economies following the COVID pandemic. Lockdowns across the globe ensured businesses and industries were introduced to unfamiliar terrains. Yet, since then, the iGaming industry has witnessed a new revival. So much so that it's predicted to soar within the next few years.
iGaming has created vast business and entertainment opportunities, causing major global shockwaves and changes. The United States is a perfect example of this, with many states proposing new iGaming laws. If successful, these laws will replace current legislation prohibiting many forms of online gambling in the US.
Needless to say, iGaming has developed into a massive industry worldwide. with the United States sitting fourth in global online gambling traffic. Hence, we examine iGaming as a profitable business for both operators and players in the US. For iGaming enthusiasts in this region, CasinoUSA.com can help you find online casino sites that offer real-money casino games.
iGaming in the United States
iGaming in the United States has been anything but straightforward. The country's complex legal sector consisting of semi-autonomous states is likely the reason for the stalemate in iGaming legalization. Today, some forms of online gambling are permitted in the United States, including sports betting and fantasy sports. However, games of chance are yet to have the same level of acceptance.
The laws applicable to iGaming work on both federal and state levels. As such, each state can make laws concerning iGaming operations, regardless of the federal legislation. Currently, seven US states allow iGaming, with online licenses mostly granted to operators with an existing gambling license. These states include;
- New Jersey
- West Virginia
Three types of entities run the iGaming business across these seven states. These entities include state lotteries, tribal or state-owned casinos or racinos, and licensed third-party operators.
Evidently, the United States remains a distance away from being completely iGaming-friendly. However, the future does offer promise, especially when iGaming is viewed as just another business.
As one of the most significant aspects of entertainment, iGaming has been a case study for different research. As such, a wide selection of statistics evidences how big a business iGaming has become. There's hardly any better way to understand iGaming growth than with numbers. For this reason, we explore an overview of the iGaming business in the US in recent years.
Sports Betting Role In iGaming Growth
The country's increased interest in sports and sporting events has become apparent. This interest has increased the demand for sports betting in the iGaming industry.
The sports betting market was valued at USD 76.75 billion in 2021. It is also estimated to reach USD 83.65 billion by the end of 2022. These figures show an upward trend in sports betting, mainly offered online for better transparency and convenience.
Online sports betting is one form of iGaming allowed across the United States. As such, the market is currently flooded with different reputable sportsbooks. These operators offer a better level of security fostered by different protocols. Some of these protocols include players' verification and terms and conditions.
iGaming Revenue In The United States
Online casinos remain the most significant aspect of the iGaming industry. In 2021, iGaming businesses in all six legal states generated $970 million in tax revenue. As of September 2022, New Jersey gathered the most revenue, with $135.2 million. Other significant revenues generated include;
- Michigan, with $128.7 million
- Pennsylvania, with $112.7 million
- West Virginia with $10.3 million.
The United States aims to become a more prominent name in the iGaming industry. And with changing legislation, we can expect to see a consistent growth of iGaming businesses in the country.
The iGaming US market has been accelerated via different novel technologies. One vital feature has been online payment. Digital and mobile payments have become more widely accepted, making it easier for online gamblers. Implementing this tech in the iGaming business has also improved safe and secure transactions. Additionally, innovations such as VR, web3, AI, and blockchain have been tipped to trigger a new wave of business possibilities.
Biggest iGaming Businesses In The United States
Let's consider the most prominent players in the US online casino market. This list is based on GGR's market share during the COVID pandemic, which was the strongest year for iGaming globally.
Across the US iGaming market, DraftKings takes the top spot as the biggest online casino with 16% of the GGR market share. The company operates online casinos in New Jersey, West Virginia, and Pennsylvania. It's also known for providing daily fantasy sports across the country.
Rush Street Interactive owns this business and accounts for 16% of the GGR market share. The company only operates in Pennsylvania and New Jersey. It became one of the first companies to apply for a license in Pennsylvania and began business in 2018.
Betfair-FanDuel accounts for 15% of the US iGaming GGR market share. In 2018, Paddy Power Betfair from Pennsylvania and FanDuel from New Jersey merged their businesses. Both businesses are owned by Flutter Entertainment, a major gaming operator with a global player base of about 13 million.
Accounting for 13% of the GGR market share, ROAR is the fourth biggest iGaming business in the US. ROAR represents a joint investment between MGM Resorts and GVC Holdings. The company comprises some of the biggest iGaming brands, including BetMGM, PartyPoker, and PartyCasino.
Golden Nugget is the fifth biggest iGaming business in the United States. However, they operate exclusively in New Jersey, a market they lead comfortably. The company had a record-high online activity in the third quarter of 2020, exceeding $100 million in GGR in New Jersey.
PokerStars makes up 5% of the US GGR market share. Having always been popular across Europe, PokerStars first launched in New Jersey in 2016. Today, players can access the site for online poker, slots, and other casino games in NJ.
Aside from online casinos, sportsbooks also make up a significant portion of iGaming. Some of the biggest online sportsbooks in the United States include;
- FOX Bet
iGaming is a massive business in the United States, tipped to reach new heights with time. As it continues to be a significant revenue stream, more states will be poised to review their legislation. And this will bring more substantial adoption of iGaming across every corner of the United States.