Online Gambling Trends: The Evolving Landscape in the US

Over the past decade, the online gambling industry in the USA has exploded in popularity. As more states legalize online gambling options, bettors have never had more options when it comes to convenient gameplay. But how exactly is the market progressing, and what do the current online gambling trends tell us about the future of the industry?

We have begun this article by looking at the current state of the market and have discussed interesting figures about online casinos and online sports betting. We’ve then looked at some future innovations that are set to revolutionize the market, such as virtual reality, artificial intelligence, and cryptocurrencies.

The Current State of US Online Gambling

Before we can discuss the current state of the US online gambling market, it’s worth taking a look at how we got here in the first place. While the first online casinos and poker sites came to prominence in the late 1990s, these gambling sites existed in a legal gray area.

While the Unlawful Internet Gambling Enforcement Act of 2006 shut down many of these sites, it didn’t explicitly outlaw online gambling. It wasn’t until 2013 that Nevada, Delaware, and New Jersey legalized online casinos and online poker. When PASPA, the federal ban on sports betting, was overturned in 2018, this paved the way for states to legalize online sportsbooks.

Within these few short years, many states have either legalized online sports betting or online casinos. The way that casino gaming trends are going, the market is in for a seismic shift, as more players are introduced to the excitement of these fun gambling options. We’ve discussed these trends in the upcoming sections.

Online Casinos and Poker

There are currently seven states that have legalized online casinos. These include Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia. In addition to these, there are several more that are looking to legalize casino options, with Rhode Island legalizing them in 2024 and California, Illinois, Indiana, Massachusetts, and New York debating legislation.

As online casino trends data shows, the industry has been hugely profitable despite only being available in a handful of states. In 2022, the annual online casino revenues exceeded $5 billion, and this number is expected to reach roughly $9.5 billion by 2028. Of course, this will depend on which states decide to legalize.

Each state has its own rules and regulations about the types of casino games that can be offered, as well as varying numbers of licenses to award. In Delaware, Nevada, New Jersey, Michigan, Pennsylvania, and West Virginia, players are also able to enjoy online poker. Annual online poker revenues hover at around $60 million.

As for the available games, players have access to a broad suite of options that include land-based classics and unique digital-only titles. The most popular of these options is online slots, which include classic-style games, video slots, and progressive jackpots. Table games fans can enjoy virtual roulette, blackjack, baccarat, video poker, and craps.

Some sites provide special options such as bingo, scratch cards, and Keno. Many of these have broad betting options to suit all budgets. One of the most popular options is live dealer casinos, which have been hugely popular in international markets for over a decade but are just starting to take hold in the US now.

Live Dealer Casinos

Live dealer casinos are an exciting gambling option that allows players to enjoy casino games that are hosted by real-life dealers. These games are streamed live from elegant local studios, with the biggest US software developers being Evolution Gaming and eZugi. There are plenty of game options available and versatile betting limits.

Games include blackjack, roulette, baccarat, craps, poker, and game shows. There are often several variants of each option to enjoy, with some offering multipliers and fun themes. The game show options often include spin-the-wheel games, and while these variants are currently limited, we expect that they will grow to offer dozens of game types as there are in Europe.

Mobile Casino Gambling

With more than 50% of casino players using their mobile phones to play, it’s important that online casinos provide reliable native mobile apps that are compatible with iOS and Android devices. Current data shows that all licensed online casinos have developed special apps with varying features, with some offering hundreds of games.

Casino users can enjoy slots, table games, and live dealer games through their mobile devices. They are also able to complete standard account functions such as making payments, creating an account, adjusting account controls, and claiming promotions. We predict that mobile usage will soon make up a huge share of usage, with 74% of users in the UK using apps to gamble.

Online Sports Betting

Since the federal ban on sports betting was overturned in 2018, a majority of states have legalized some form of gambling on sports. While some have yet to authorize online wagers, most provide the opportunity to bet at land-based casinos and through websites. We’ve listed all legal sports betting states below.

• Arizona
• Arkansas
• Colorado
• Connecticut
• District of Columbia
• Illinois
• Indiana
• Iowa
• Kansas
• Louisiana
• Maryland
• Massachusetts
• Michigan
• Nevada
• New Hampshire
• New Jersey
• New York
• Ohio
• Oregon
• Pennsylvania
• Rhode Island
• Tennessee
• Virginia
• West Virginia
• Wyoming

Of these states, Delaware, Mississippi, North Carolina, and South Dakota limit wagers to in-person only. Because of its wide availability, sports betting is the most popular online gambling activity in the USA. The total sports betting revenue hit $7.5 billion in 2022, up roughly 75% from the previous year.

It is estimated that the federal government received nearly $1 billion from online sportsbooks alone in 2022, and as the market grows, this figure is only going to balloon. Recent estimates put sports betting industry revenues at $14.4 billion by 2027, and online gaming is bound to be a major factor in this.

Currently, there are several online betting trends that have been noted. One is the ability to cash out winnings early, which means that players can either receive a return on their stake if a bet looks like it will be unsuccessful or a lower payout to secure a likely win. Another popular feature that is expanding is live betting and streaming.

Live Betting and Streaming

All major US online sportsbooks offer players a chance to bet on sports as they unfold in real-time. This is a fast-paced activity that regularly offers the chance to cash out your wins early. Betting sites offer varying tools to aid your wagers, including live overviews of games and up-to-date statistics.

The most exciting feature is the ability to live-stream games as you watch them. While not all states and sportsbooks offer this, many offer the chance to stream international sporting events, while others allow for streaming of major US league games. In the future, we expect the streaming options to grow.

Daily Fantasy Sports

Daily fantasy sports differ from sports betting in that contestants must draft lineups of players from one sports league. They then earn points based on the performances of their drafted players in that week’s competition, and the players with the most points earn a share of a prize pool.

These competitions vary in regard to rules and drafting processes, and you can draft from a range of major sports leagues. As most states don’t consider DFS to be gambling, it is available in most states across the nation. In 2022, the activity generated roughly $9.5 billion, and this is expected to grow as major sportsbooks offer these additional contest modes.

Mobile Betting

It is expected that online sports betting alone will generate over $7.5 billion in 2023. Due to the versatility and portability of mobile devices, over 50% of online bets are made through sportsbook apps. Not only are sportsbook apps incredibly convenient, but they also support live bets and live streams.

If we look at trends in overseas markets with a more established industry, it’s safe to assume that mobile app wagering will continue to grow as younger demographics reach the legal gambling age in their respective states. In Europe, mobile use has grown from 41% to 55% in five years, so we expect a similar trend in the US too.

The Future Outlook for the Industry

Now that you understand where the market currently lies, we can look forward to the future technological trends that are expected to shake up the industry over the next decade. There has already been much talk of investment in these technologies by US operators, and gambling sites in the UK and Europe have already started to implement them.

Below, we’ve looked at how virtual and augmented reality will be employed to create more immersive gaming experiences. We’ve also discussed how artificial intelligence and cryptocurrencies will be utilized, as well as how gambling legislation will likely evolve to address the changing market.

Virtual and Augmented Reality

As virtual reality headsets become more affordable and usage rates increase, we expect that online casinos and sports betting sites will provide games for VR. These devices could put players in digital casinos, playing slots or live dealer table games in realistic settings as though they were at a land-based casino.

Some have posited placing cameras on sports players’ helmets so live bettors could experience the action on the ground and wager from there. With augmented reality, players could project virtual table games on to their desks. There is already one VR online casino in Europe, so as more games are developed, we’re confident they’ll be released to the US market.

Artificial Intelligence

The applications for Artificial Intelligence (AI) in the online gambling market are endless. One way that it could be used is to learn the types of games that each player enjoys and create customized platforms for them. Chatbots could also become more intelligent and reliable.

In the not-too-distant future, AI may even create customized slots for players with unique themes, paylines, and volatility rates to suit their tastes. Sportsbooks could use AI to create more accurate and favorable odds, and even pre-build optimal wagers for users. We’re excited to see where this technology takes us.

Cryptocurrencies

Another major topic of discussion around future technology is the adoption of cryptocurrencies as a viable payment method. In Europe, many online casinos now accept Bitcoin and Ethereum, and sites such as BetMGM have already announced that they are considering these payments once regulatory issues are addressed.

There are plenty of perks to cryptocurrencies for gambling. One is that crypto payments are transparent while adding added layers of security and anonymity. Once a payment has been made, this is recorded in an online ledger. This protects the website’s integrity as fraudulent transactions can be quickly identified.

Laws and Regulations

Admittedly, the current online casino and online poker in the USA is relatively small. However, there are several states that are considering legalization. If states such as California legalize online casinos, this will have a major impact on the industry, as it will greatly increase users and investment in more games, software, and technology.

As the market matures, we expect that lawmakers will need to adjust legislation to protect the well-being of players, which could include updates to responsible gambling protocols. For example, several European countries have now outlawed payments with credit cards and limited the types of promos that can be offered. This could be introduced to the US too.

Frequently Asked Questions

Now that you’ve reached the end of this guide to online gambling trends, we hope you are as excited about the future of the industry as we are. If you didn’t have time to read the whole guide and are looking for quick answers to your queries, keep reading. Below, we’ve addressed some frequently asked questions about the topic.