These data are presented in the latest report by the regional regulator — the American Gaming Association (AGA). According to their estimates, this is 27.9% more than the same period in 2023.
What is legal online gambling in the USA?
The key feature of this sector in the country is its fragmented regulation, which can vary significantly from state to state. For instance, in two states — Utah and Hawaii — all forms of gambling are completely banned. In all others, they are legalized in some form.
This prevalence of local over federal governance is also evident in taxation laws. For example, some states are considering tightening tax burdens on online gambling.
Take New Jersey. Currently, by law, operator companies in this jurisdiction pay a tax rate of 15% on GGR (Gross Gaming Revenue). However, this year a bill was introduced to raise the current rate to 30%. But even this potential change doesn't compare to the taxation in Pennsylvania. Here, a more burdensome rate is set for online slots — 54% of the GGR.
Here’s some brief market statistics on online gambling, according to AGA:
- iGaming activities are permitted and regulated in 7 states;
- iLottery activities (essentially online lotteries) are permitted and regulated in 10 states;
- Online betting is legalized in 38 states and the District of Columbia.
In total, for 2023, the online segment of the gambling industry generated $16.55 billion.
To clarify: in the USA, this includes both iGaming (the association doesn’t provide a clear definition) and sports betting through websites or apps.
Current State of the Online Industry Segment
- In the third quarter of 2024, the online gambling market — including betting and iGaming — earned $5.14 billion (+37.9% YoY). This is nearly a third — specifically 29% — of the total revenue of the entire U.S. gambling business. It is worth noting that as of October, industry revenues have been continuously growing for 44 months.
- The main growth driver was the sports betting sector. Online, it generated $3.06 billion (+42.4% YoY).
- Top 5 states by share of online betting in total revenue: District of Columbia (South Carolina) — 36%; Louisiana and West Virginia — 14% each; New Jersey and Kentucky — 12% each.
- Quarterly revenue from the iGaming segment was $2.08 billion (+30.3% YoY). From January to October 2024 alone, its revenues reached $6.79 billion (+27.9% YoY).
- Interestingly, Delaware showed the most significant annual growth — by 393%. It partnered with operator Rush Street Interactive to conduct the state's lottery. Also, games from three local casinos — Delaware Park, Bally’s Dover Casino, and Harrington Raceway & Casino — appeared on the platform.
- However, each of the other six states where online gambling is allowed also showed annual growth, ranging from 25% to 68%. These are Rhode Island, West Virginia, Connecticut, Michigan, New Jersey, and Pennsylvania.