United States Online Gambling Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

United States Online Gambling Market Trends and Insights

High smartphone and broadband penetration enables seamless access to betting platforms anytime, anywhere within legal states

Mobile devices played a significant role in online gambling activity in 2025, a trend supported by the widespread availability of 4G networks and the growing coverage of 5G technology. These advancements enabled instant account access and real-time wagering. Operators improved applications to allow one-tap deposits through Apple Pay and Google Pay, reducing barriers that previously discouraged casual bettors. In 2024, PayPal's integration with major sportsbooks allowed users to fund accounts directly from linked bank accounts, bypassing card-network intermediaries and cutting transaction times to under 10 seconds. Furthermore, Venmo's peer-to-peer architecture was adapted for gambling wallets, enabling users to transfer winnings to friends or share parlay stakes, replicating the social experience of in-person betting. The shift to mobile-first design also incorporated geolocation verification using Global Positioning System (GPS) and Wi-Fi triangulation, ensuring compliance with state boundaries while allowing users to move freely within legal jurisdictions.

Integration of live in-play betting enhances user engagement through real-time odds and interactive wagering experiences

In-play betting now accounts for over 40% of the total sports-betting handle, supported by data feeds from Genius Sports and Sportradar that update odds every 2 to 3 seconds during live events. In 2024, DraftKings introduced micro-betting, enabling wagers on specific events such as individual pitches in baseball or possessions in basketball. This development increased the average session duration by 18 minutes, as reported in the company's third-quarter 2025 earnings call. Dolby's OptiView streaming solution, adopted by select operators in 2025, synchronized video streams with betting interfaces, addressing the previous 5 to 10-second delay that caused odds to shift before users could place bets. This integration of streaming and wagering has transformed passive viewing into an interactive experience, where each play generates new betting opportunities. The National Basketball Association (NBA) incorporated live odds into its League Pass streaming service in 2024, marking a shift from its earlier resistance to sports-betting integration. This change highlights how sports leagues are now monetizing real-time data as a valuable first-party asset.

Partnerships between sportsbooks and professional sports leagues increase brand visibility and betting content integration

The announcement in November 2025 that DraftKings would become ESPN's exclusive sports-betting partner, replacing PENN Entertainment's ESPN Bet, highlights the strategic importance of media distribution over standalone brand equity. ESPN's linear and digital reach, which averages 75 million monthly unique visitors, provides DraftKings with significant advantages such as in-content odds displays, pre-game betting segments, and talent endorsements. These benefits are difficult for competitors to replicate without access to equivalent media platforms. In February 2024, BetMGM entered into an exclusive partnership with X, formerly known as Twitter, integrating live odds into event timelines and enabling users to place bets with a single click without leaving the social platform. Furthermore, in September 2024, the Major League Baseball Players Association (MLBPA) filed a lawsuit against DraftKings and FanDuel over the unauthorized use of player name, image, and likeness (NIL) data. This legal action underscores the growing efforts by athletes to assert intellectual property rights over their statistical profiles, which are used as betting content. Hard Rock International has also indicated its willingness to partner with FanDuel or DraftKings in Florida, provided there are changes to state legislation. This reflects how regional operators are seeking co-branding opportunities to remain competitive with national platforms.

Adoption of secure digital payments and e-wallets supports instant deposits, withdrawals, and cashless gambling behavior

Paysafe's 2024 research revealed that 68% of US online gamblers prefer e-wallets over credit cards, citing enhanced transaction security and speed. In response, operators have integrated platforms such as PayPal, Venmo, Skrill, and Neteller into their checkout processes. FanDuel introduced instant withdrawal functionality in late 2024, leveraging real-time payment rails from The Clearing House's Real-Time Payments (RTP) network. This feature allows users to access their winnings within 15 minutes, compared to the typical 3 to 5 business days required for Automated Clearing House (ACH) transfers. In 2025, Visa issued updated guidelines for digital wallets in gambling, requiring tokenization and biometric authentication to mitigate fraud. As a result, operators have adopted fingerprint and facial recognition technologies for transactions exceeding USD 500. Cryptocurrency adoption remains limited due to regulatory uncertainties, although some offshore-licensed platforms accept Bitcoin and Ethereum in states with less stringent enforcement. The transition to cashless ecosystems has also enabled operators to implement dynamic pricing strategies. These strategies adjust odds and promotions in real time based on a user's wallet balance and betting history, offering personalized incentives that enhance customer lifetime value.

Strict advertising regulations restrict promotional messaging, content placement, and targeting for gambling operators

The National Collegiate Athletic Association (NCAA) has decided to prohibit gambling advertisements during its championship broadcasts, including the widely viewed March Madness, starting in 2024 ^{[1]Source: The National Collegiate Athletic Association, “NCAA launches Draw the Line to address sports betting,” ncaa.org}. This change eliminates a significant promotional opportunity that gambling operators had previously leveraged to attract millions of new users. In the same year, Massachusetts introduced regulations requiring that 20% of all gambling advertisements include responsible-gaming messaging. The state also banned celebrity endorsements by athletes under the age of 21, prompting operators to revamp campaigns that had relied heavily on endorsements from prominent figures. Similarly, Ohio implemented rules mandating a 10-second gap between gambling advertisements on television. This regulation prevents consecutive ads, a strategy that had previously helped reduce customer acquisition costs by 15% in states without such restrictions. Meanwhile, Virginia took steps to ban gambling advertisements targeting users under 21 through social media geofencing. This measure requires platforms such as Meta and Snap to implement age-verification processes, which have led to a 30% decline in click-through rates.

High taxation and licensing fees in leading states reduce operator margins and discourage smaller entrants

New York's 51% tax on gross gaming revenue (GGR) generated USD 1.76 billion for the state in the fiscal year 2023-2024. However, this high tax rate significantly reduced operator margins to single digits, leading smaller platforms, such as WynnBET, to exit the market. WynnBET also sold its Michigan internet gaming (iGaming) assets to Caesars in June 2024. In Pennsylvania, the 36% sports-betting tax, combined with a separate iGaming levy, resulted in over USD 1.1 billion in collections during fiscal 2024. To manage the tax burden, operators reduced promotional spending, which caused a 12% year-over-year decline in new-user acquisition ^{[2]Source: Pennsylvania Gaming Control Board, “PA Gaming Control Board Reports Record Monthly Revenue in November Driven by All-Time Highs in Sports Wagering and iGaming,” gamingcontrolboard.pa.gov}. Illinois imposes a 15% tax along with a progressive surcharge that reaches 40% for operators with annual revenues exceeding USD 200 million. This structure penalizes larger operators and discourages investment in technology upgrades. Licensing fees vary significantly, ranging from USD 10 million in New York to USD 500,000 in smaller states. These high fees create barriers to entry, limiting competition to well-capitalized incumbents such as Flutter, DraftKings, and MGM. BetMGM's third-quarter 2025 earnings before interest, taxes, depreciation, and amortization (EBITDA) of USD 41 million, achieved after years of losses, highlights that profitability in this market requires multi-state scale to amortize fixed costs. This threshold remains challenging for regional operators to achieve.

Segment Analysis

By Game Type: Casino Outpaces Sports Betting Growth

Casino gaming is expected to grow at a compound annual growth rate (CAGR) of 13.92% through 2031, surpassing the growth of sports betting, which is projected to hold a 49.21% market share in 2025. This growth is driven by the stronger unit economics of online gaming (iGaming) and favorable regulatory developments in key states. For example, Michigan's iGaming revenue in October 2025 reached USD 278 million, representing a 31.8% year-over-year increase. This performance highlights the consistent engagement generated by live dealer games and slot titles, in contrast to the episodic nature of sports events.

BetMGM reported that its iGaming segment contributed 21% to its 15% overall gross gaming revenue (GGR) market share in the third quarter of 2025. Furthermore, iGaming demonstrated earnings before interest, taxes, depreciation, and amortization (EBITDA) margins that were 8 percentage points higher than sports betting. This is attributed to lower customer acquisition costs and reduced promotional expenses. Similarly, Pennsylvania's iGaming revenue in November 2024 amounted to USD 200 million, reflecting a 27% year-over-year increase. This growth underscores the expansion of slot and table-game libraries, which now feature branded titles from major studios. These branded titles create intellectual property synergies that are not available in sports wagering.

Note: Segment shares of all individual segments available upon report purchase

By Gender: Female Segment Redefines User Demographics

The female segment is expected to grow at a compound annual growth rate (CAGR) of 10.12% through 2031, gradually reducing the gap with male users, who held 69.01% of the market share in 2025. This growth is being driven by operators adopting marketing strategies that focus on community and entertainment rather than traditional sports fandom. The American Gaming Association reported that 46% of sports bettors were women in 2024, an increase from 38% in 2020. This rise has been supported by campaigns such as Caesars Sportsbook's "Queen of the Sportsbook," which highlights female athletes and influencers.

Women also make up a significant portion of online casino players, exceeding their participation in sports betting. This is largely due to the popularity of slot and live-dealer games, which require less sports-specific knowledge and therefore lower the barriers to entry. In 2024, FanDuel introduced promotions tailored to women, including risk-free bets associated with Women's National Basketball Association (WNBA) games and partnerships with female sports media personalities. This demographic is recognized for its higher lifetime value, as they tend to have lower churn rates and more consistent wagering patterns.

By Age Group: Gen Z Drives Long-Term Expansion

The Below 25 Years segment is anticipated to grow at a Compound Annual Growth Rate (CAGR) of 14.42% through 2031, making it the fastest-growing age group. However, it faces structural challenges due to 21+ age requirements in most states and National Collegiate Athletic Association (NCAA) restrictions on college-athlete betting. Age-verification technologies from providers such as ID.me, Jumio, and Onfido now utilize biometric facial recognition and document authentication. While these measures help reduce underage access, they also introduce additional steps that may discourage some legitimate users.

The 25-40 Years segment, projected to account for 53.13% of the market share in 2025, serves as the primary revenue base. This group is characterized by higher disposable income and familiarity with digital payment systems. Since 2018, their transition from daily fantasy sports to sports betting has been a significant growth driver. Operators have customized product features such as same-game parlays and cash-out options to align with the risk preferences of this segment.

Note: Segment shares of all individual segments available upon report purchase

By Device: Mobile Dominance Reshapes Infrastructure

Mobile devices accounted for 80.13% of the market share in 2025 and are expected to grow at a compound annual growth rate (CAGR) of 12.44% through 2031. This growth has shifted desktop platforms to secondary roles, primarily for account management rather than active wagering. Operators have prioritized the development of iOS and Android applications, achieving load times of under 2 seconds and enabling one-tap bet placement. In comparison, desktop interfaces often require multi-step authentication, making them less efficient. The integration of Apple Pay and Google Pay into mobile applications has reduced deposit friction by 40%, as highlighted in FanDuel's 2024 user-experience analysis. Furthermore, biometric login features, such as Face ID and fingerprint scanning, have effectively addressed issues related to password fatigue.

The expansion of 5G networks, now covering 70% of the United States population, has enabled real-time streaming of live games within betting applications. This advancement has streamlined the user experience by eliminating the need for a second screen, creating a unified platform. As a result, in-play wagering has increased by 30% compared to users who switch between devices.

Geography Analysis

The United States is a leader in the online gambling market, with state-level legalization creating a variety of regulatory frameworks. Operators must navigate these frameworks through multi-jurisdictional licensing and technology requirements. In New York, sports-betting tax revenue reached USD 1.76 billion during the fiscal year 2023-2024, supported by a 51 percent gross gaming revenue (GGR) tax rate, the highest in the nation. Despite challenges such as operator margin compression, New York's annual handle of USD 12 billion makes it the largest market by volume. New Jersey, the first state to legalize sports betting following the repeal of the Professional and Amateur Sports Protection Act (PASPA) in 2018, reported a combined handle of USD 12.4 billion from January to November 2024. Total gaming taxes exceeded USD 1.2 billion, reflecting a well-established ecosystem where internet gaming (iGaming) contributes 55 percent of operator revenue.

Michigan set a state record in October 2025 with iGaming revenue of USD 278 million, representing a 31.8 percent year-over-year increase. This growth was driven by the expansion of live-dealer offerings and slot libraries. Sports betting contributed USD 74 million during the same period, emphasizing the state's preference for casino gaming. Illinois collected USD 162 million in sports-betting taxes during fiscal year 2024 under a progressive tax structure that imposes higher rates on high-revenue operators. This policy has discouraged smaller entrants and concentrated market share among major players such as FanDuel, DraftKings, and BetMGM.

Emerging markets like Ohio, which legalized sports betting in 2023, and Massachusetts, which launched in 2024, are growing rapidly but remain smaller compared to the top five markets. Florida's regulatory environment continues to be complex due to tribal gaming compacts that grant the Seminole Tribe exclusive rights to online sports betting. This arrangement has limited competition and prompted Hard Rock International to explore partnerships with national operators, pending potential legislative changes.