There are various different reasons why iGaming is spreading so fast in the U.S. The legalization of online gambling is one of the main reasons. States in the U.S. have full control over whether to allow online gaming or not. They can also regulate it within the state as they see fit. According to Goldman Sachs, online gambling in the U.S. will be worth $39 billion by 2033.
Potential tax revenue
More and more states are realizing the benefit of the tax revenue online casinos can generate. Pennsylvania, Nevada, Illinois, New York, and New Jersey are leaders in the online gambling industry in the U.S. in terms of revenue.
New Jersey was the first to legalize online gambling and continues to be one of the states with the fewest restrictions. Data from the Division of Gaming Enforcement in New Jersey shows online sites generated over $1 billion in the first seven months of 2023. This is over 14% higher than it was for the same time period in 2022. In 2022, online casinos showed a growth pattern building up towards a December record. Every New Jersey online casino could follow the same trend in 2023. It could be a record year when it comes to iGaming revenue.
Improvements in technology
The iGaming industry relies on new technology and innovation to offer gamers more convenience, security, and safety.
Smartphone adoption: The growing adoption of smartphones is one of the factors driving market growth. Gamers look for games at mobile-friendly casinos to enjoy while traveling. They can play games from anywhere at any time.
Security and safety: Players expect protection of their personal information when registering and playing at online sites. Casinos use some of the most cutting-edge security measures to ensure they are safe and secure.
Innovative payment measures: Casinos also offer innovative payment measures. More casinos are using blockchain and cryptocurrencies than before. Blockchain helps to ensure secure payments.
Live streaming: Live streaming is currently enabling more immersive experiences when playing online games. In studios at casinos, real-life dealers will deal cards or spin the wheel and the action is live streamed to the player. This gives players more of a feel of being in a brick-and-mortar casino. Tech companies are looking for ways to make streaming video games as natural as streaming movies or music.
Virtual reality: VR creates artificial environments that mimic real ones. This offers great potential for online casinos to create immersive experiences. Bulky VR headsets and high prices are some of the factors that have held back the wide adoption of VR.
Market demographics are expanding
Players of all ages are involved in iGaming today. The gender mix is also becoming more equal. There are many women who enjoy iGaming today. Today, gamers can make money by streaming videos of themselves playing games. Top level gamers compete in eSports leagues and gain wide recognition. All of these new avenues of expression are expanding the demographics of those interested in iGaming.
According to iGaming market predictions, the global market is expected to grow at a compound annual growth rate (CAGR) of nearly 12% between 2023 and 2030. Predictions are that a further one billion gamers could sign up for online gambling worldwide by 2025.
The casino segment is growing
The casino segment of the industry is expected to grow significantly over the next decade. This is due to the popularity of games such as virtual slot machines and table games like poker and blackjack. Many states have now fully legalized sports betting. As Americans love their sports, more and more of them are starting to bet on sports.