Continued Restriction of Power Sources for the U.S. Entertainment Industry Limits Expansion to a Seven-State Area with Estimated Value Exceeding $7 Billion
In 2024, the iGaming industry in the United States has experienced a significant surge, transforming the digital economy and creating numerous job opportunities. With a revenue of over $7.8 billion and approximately 63,000 jobs generated in California alone, the sector has positioned itself as a major player [1].
The success and rapid growth of iGaming can be attributed to several key factors. One of the primary drivers has been the strong revenue growth and market momentum. In Q1 2025, iGaming gross gaming revenue (GGR) increased by 27.3%, significantly outpacing traditional land-based casino gaming growth of 1% and sports betting growth of 13.6% [1].
Mobile gaming and technological advancements have also played a significant role in iGaming's growth. Operators are adapting by incorporating AI-based personalization, virtual reality (VR), and immersive gaming technologies that enhance the user experience [2]. The adoption of advanced technology allows for quick decision-making, scalability, and meets the rising player demand for speed, personalization, and seamless gaming experiences [2].
Regulatory evolution and market expansion have also contributed to iGaming's growth. The gradual legalization and launch of online gambling in new states, such as Rhode Island’s online casinos in March 2024, drive growth by expanding market reach [2][4]. While regulations remain complex and frequently changing, operators who anticipate and adapt swiftly to regulatory shifts position themselves for continued expansion [2].
Increasing digital penetration and user base are also fueling the growth of iGaming. The digital gaming segment in the US is forecast to grow revenue by 28% in 2025 and continue strong double-digit growth through 2026 [3]. More states potentially adopting digital gaming laws will further amplify this growth trend [3].
Focus on security and player acquisition is another crucial factor. Rising player expectations demand the highest standards of online casino security and innovation in payment options [2]. Managing acquisition costs while offering personalized experiences and cross-platform loyalty systems helps operators attract and retain customers effectively [2].
Market complementarity with traditional gaming is another aspect that has aided iGaming's growth. Though digital and traditional gaming coexist, online gambling markets are growing faster. The combined online gambling revenue share increased to 32.8% from 29.3%, highlighting how iGaming complements but also drives new revenue streams within the US gaming ecosystem [1].
The growth rate of iGaming in the US, at 27.9 percent, is projected to surpass the $7.5 billion iGaming market of the UK [1]. Tribal casinos in California have been a powerful growth driver [1]. As of 2024, iGaming is making billions in the US, specifically in seven states, and it's expected that, for the year, iGaming revenue will easily average $1 billion per state [1].
Sources: [1] https://www.businessinsider.com/igaming-market-growth-us-2024 [2] https://www.forbes.com/sites/forbesagencycouncil/2023/12/12/the-key-factors-behind-the-growth-of-the-igaming-market-in-the-us/?sh=56e8e8052b44 [3] https://www.statista.com/statistics/1186667/us-online-gambling-market-size/ [4] https://www.gamblingtimes.com/news/2024/03/23/regulatory-shifts-drive-igaming-growth-in-the-us/
- The success of iGaming has led to increased interest in community news, as the industry's transformation of the digital economy and generation of over 63,000 jobs in California attract attention and discussion among locals.
- As iGaming continues to grow, entertainment and events related to technology, such as AI, VR, and immersive gaming experiences, are increasingly popular to engage and attract new users.
- The expanding iGaming industry across the United States affects the finance sector, as the growth in revenue from mobile gaming and online gambling in states like Rhode Island provides new opportunities for investors and financial institutions.
