Since the PAPSA ruling was overturned in 1998, the online gambling market in the US has grown incredibly fast – and it is showing no signs of slowing down, despite the enduring popularity of physical casinos.

Sports betting became legal on a federal level, with each US state given the oversight to decide how they want to legislate and regulate sports betting – and so far, to the end of 2022, 32 states have made it possible to bet on the outcome of sporting events online or in person.

It is no surprise, then, that while the overall US gambling market is set to grow by a Compound Annual Growth Rate of 17.34% over the next five years (the global amount is under 12%), more than half of the revenue has come from sports betting.

What does that mean for the future of online gambling in the US – and should you get involved? Whether you are in any of the other states that allow online gambling, you need to know where to look to find the right casino for you. For most people, that includes looking into operators that are authorized by the state, and for New Jersey, you can find a lot of them published here by Bonusfinder US.

Internet Penetration

While the US might have a stricter market for online gambling than other economic areas, it is the internet penetration of the country that has really added to the drive for more online play.

In the US in 2022, the internet penetration was 92% of the total population – which means that nearly everyone has access to the web – and where legal and regulated, to online casino sites.

The availability of online casinos globally has had an effect on players in the US – with technology like Virtual Private Networks (VPNs) giving Americans access to casinos from different areas by masking their IP address and location. This is both a blessing and a curse for players – they can access the games that they want to play, even if it is illegal in their state – but they are not protected in the same way as they would be by a legal and regulated entity.

Mobile Phone Usage

Alongside the internet, smartphone availability and capability has meant that it has never been easier to complete almost any online transaction using a mobile phone. The rollout of super-fast 5G data connections, especially in the cities, means that wherever you are you can get online.

This convenience has fanned the flames of popularity when it comes to online casinos; it has never been easier to play your favorite games – and with native casino apps being developed to suit different operating systems, it is so simple.

Sports Betting

The biggest reason for the growth of the US casino industry was the legalization of sports betting at a federal level.

From 2018, multiple states have signed up to legalize and regulate sports betting, either in person or online (or both) – and more are likely to join in. While early adopters like New Jersey and West Virginia have led the charge towards simple sports betting for all, it has really hit the headlines when New York got involved.

The statistics around online gambling in the US all point towards the same thing – that revenue from sports betting is around half the total revenue of all other forms of gambling combined, including things like poker, slots, blackjack, and lotteries.

Increasing Legalization

Europe has had the lion’s share of the market for many years, with 41% of revenue coming from that continent – and while Asia Pacific might be the fastest growing region in the world when it comes to playing online casinos, it is the increasing legalization and regulation that is driving the growth of online betting in the US.

States are free to decide for themselves what (if any) legalization they want to apply to online gambling, which has made it a flexible way for states to monitor what is happening elsewhere before they decide for themselves.

States that have allowed sports betting and other forms of online gambling are being used as tests or examples, so that state-level governments can see what they might expect from a change in legislation.

It is worth mentioning, of course, that the figures around online casinos in the US do not consider the earlier mentioned illegal casino sites; players in the US have been able to access this software using technology like VPNs to mask their location.

Taxation and Governance

The final point that is helping the growth of online gambling, casinos, and sports betting is the taxation and the governance systems that are in place in the states where it is legal and regulated.

State legislators can essentially choose the level of taxation that they want casino operators to pay. This is over and above any declarations on personal tax forms that a player has to do.

As an example, in New York, online sports betting operations are expected to pay a 51% tax rate on their operations – a clear way for the state government to make a serious amount of money.

Future Outlook and Predictions for the USA’s Online Gambling Market

The future outlook for the USA’s online gambling market appears promising, with several predictions indicating continued growth and expansion. As more states legalize and regulate online gambling, the market is expected to experience a significant boost in revenue and participation.

Technological advancements, such as virtual reality and augmented reality, are likely to revolutionize the online gambling experience, offering immersive and realistic gameplay. Additionally, the integration of cryptocurrencies and blockchain technology may enhance security and transparency, attracting a wider audience. Mobile gambling is also anticipated to flourish, as smartphones and tablets become the preferred devices for online gaming.

Overall, the future of the USA’s online gambling market seems poised for substantial development and innovation.