Online gambling in the US has not always had smooth sailing in the United States. While we grew up to know Las Vegas as the home of gambling, the activity never received wide acceptance in the country. However, new legislation was promulgated, giving each state the autonomy to make gambling widespread. New Jersey was the first to allow it, followed by Delaware and Nevada.
Since this development, online gambling North America has grown at a rapid rate. Goldman Sachs recently stated that iGaming marketing in the US was valued at $900 million in 2021. Different projections suggest the industry will hit US$19.14 billion by 2023 and $33.15 billion by 2028. Read on as we dissect online gambling in the US and analyze the current trends.
Highlight Summary:
- Online gambling in North America has grown at a rapid rate
- US Gambling laws vary from state to state
- Millennials account for 46% of all online gambling, whilst Gen Z accounts for 36%
- Always hire an agency that understands the US iGaming market for your marketing needs
What is iGaming?
The iGaming market has experienced substantial growth in both Europe and the United States. This growth also extends to online gambling in North America, South America, Asia, Africa and other continents. However, online gambling in the USA started in 1994, when the first iGaming website, the Gaming Club was launched by Microgaming. It went on to become regulated in 1996 under the Kahnawake Gaming Commission. By 1998, more players had entered the market. As of 2001, iGaming had fully formed and started spreading. A diverse range of countries started legalizing and regulating online gambling.
Online gambling in the US became a thing in 2018 when the Professional and Amateur Sports Protection Act (PASPA) was repealed. This allowed states to legalize sports betting. Since then, several states have legalized online casino gambling, online poker, or both. States like New Jersey, Pennsylvania, Michigan, Delaware, and Nevada have been at the forefront.
While online gambling in the US has had different development rates in Europe, it maintains its upward growth momentum, and is one of the fastest growing markets worldwide.
Who Regulates Online Gambling in the US?
Gambling regulation in the United States is primarily handled at the state level, with each state having the authority to establish and update its own gambling laws & regulatory framework. However, there are also federal agencies that play a role in overseeing certain aspects of gambling activities. Here are the fundamental entities involved in gambling regulation in the US:
Federal Wire Act
The Federal Wire Act was enacted in the United States in 1961. It’s a federal law whose primary purpose is to combat organized crime. This included monitoring illegal gambling operations that used wire communications, such as telephone or telegraph, to facilitate wagers for bets across state lines.
Initially, it was interpreted as applying to sports betting, which didn’t prohibit other forms of online gambling in the US. However, in 2018, the DOJ reversed its 2011 opinion and issued a new interpretation of the Wire Act, stating that the law applied to all forms of online gambling, not just sports betting. This interpretation raised concerns and potential implications for online gambling activities, including online casino games and poker. There’s still an ongoing debate on the interpretation that should be given to this law.
UIGEA
The Unlawful Internet Gambling Enforcement Act (UIGEA) is a federal law promulgated in the United States in 2006. The main objective of UIGEA is to prohibit gaming operators from knowingly supporting payments in connection with illegal igaming marketing.
While UIGEA does not explicitly make online gambling in the US unlawful, it targets the financial transactions associated with it. It primarily places the responsibility on financial institutions to monitor and block transactions related to unlawful online gambling. It does not target individual players or impose criminal penalties for participating in online gambling activities.
PASPA
The Professional and Amateur Sports Protection Act (PASPA) was a federal law enacted in the United States in 1992. PASPA primarily focused on sports betting and regulated its legality at the federal level. However, in May 2018, the United States Supreme Court ruled that PASPA was unconstitutional, effectively opening the door for states to legalize and regulate sports betting, including online sports betting, if they chose to do so. As a result, PASPA no longer regulates online gambling in the US directly.
US Gambling Laws By State
US Gambling laws vary from state to state. Each state has the authority to establish its own regulations and determine the legality of different online gambling and betting markets. States like Nevada, New Jersey, Pennsylvania, Mississippi, and Michigan offer a variety of casino games, including slots, table games, and poker. California, Oklahoma, Florida, Washington, and Connecticut offer Tribal Casinos. Other states have other forms of gambling also. Below is a table showing their options.
US States and Where it is Legal to Gamble
| State | Available Since Year | Offline Sports Betting | Online Sports betting |
| Arizona | 2021 | Yes | Yes |
| Arkansas | 2019 | Yes | No |
| Colorado | 2020 | Yes | Yes |
| Connecticut | 2021 | Yes | Yes |
| Delaware | 2018 | Yes | No |
| Florida | N/A | Pending | Pending |
| Illinois | 2020 | Yes | Yes |
| Indiana | 2019 | Yes | Yes |
| Iowa | 2019 | Yes | Yes |
| Louisiana | 2021 | Yes | Yes |
| Maryland | 2021 | Yes | Soon |
| Massachusetts | 2022 | Yes | Yes |
| Michigan | 2020 | Yes | Yes |
| Mississippi | 2018 | Yes | No |
| Montana | 2020 | Yes | No |
| Nebraska | N/A | N/A | Pending |
| Nevada | 1949 | Yes | Yes |
| New Hampshire s | 2019 | No | Yes |
| New Jersey | 2018 | Yes | Yes |
| New Mexico | 2018 | Yes | No |
| New York | 2019 | Yes | Yes |
| North Carolina | 2021 | Yes | No |
| North Dakota | 2021 | Yes | No |
| Oregon | 2019 | Yes | Yes |
| Pennsylvania | 2018 | Yes | Yes |
| Rhode Island | 2018 | Yes | Yes |
| South Dakota | 2021 | Yes | land-based casinos only |
| Tennessee | 2020 | No | Yes |
| Virginia | 2021 | Yes | Yes |
| Washington | 2021 | Yes | No |
| Washington DC | 2020 | Yes | Yes |
| West Virginia | 2018 | Yes | Yes |
| Wyoming | 2021 | No | Yes |
States Where Gambling is Illegal
While different states are beginning to legalize online gambling in the US, there are still illegal gambling states. These states have made all forms of gambling completely illegal. They include Utah, Vermont and Hawaii. Some other states have partial restrictions, like Tennessee that doesn’t have a single brick-and-mortar casino or racetrack. However, online gambling is legal in the state.
Alaska, Georgia, and South Carolina also have strict gambling rules, which make gambling illegal. This is mainly because these states have not successfully passed gambling law bills since they were given the free will to do so in 2018.
What are the Current US Online Gambling Market Trends?
The digital gambling sector in the United States is projected to reach an impressive revenue of US$23.03bn in 2024. Moreover, it’s predicted to maintain a consistent yearly growth rate of 9.53%, leading to an estimated market value of US$33.15bn by 2028. With the current trends, in 2024, the US is projected to accumulate the most significant revenue globally.
Although online gambling in the US is just picking up, US citizens have been gambling offline over the years. With the introduction of online gambling, there have been different market trends in the gambling industry. Research conducted in 2022 by LaneTerralever and Jefferies found that millennials account for 46% of all online gambling and Gen Z 36%.
Offshore casinos are also a big part of the gambling trends in the US. However, the legality of such sites operating in the US is a dicey one. While gambling at offshore online casino sites is possible, the issue lies with financial transactions like placing deposits and withdrawals. Also, it is illegal, according to the Unlawful Internet Gaming Enforcement Act passed in 2006.
Despite that, players in America have continued to use the services of offshore betting sites every year. This has been a trend in the US gambling market and has been a problem for the US government.
Another major trend is how sports betting is the most prevalent form of gambling against casinos or lotteries. In 2024 it’s predicted to reach US$9.65bn in revenue. It’s no surprise as the United States is big on sports, which makes players prefer to gamble on things they know about. It makes it easier for players to manage their gambling bankrolls and strategies for effective gambling.
Why Using an Expert iGaming Marketing Agency for Your Online Gambling in the US?
Learning about the latest news on different subjects from experts is one rule that cannot be overemphasized. This is because they are always the most accurate and will save you a lot of time searching for verifiable data. This is why Pugu Digital is dedicated to bringing you only the most relevant and accurate information from different fields.
We have been doing this for a decade and have always left our clients satisfied with excellent results. We have a vast knowledge of the US market, with accurate data in sectors like web development, digital and content marketing or branding. Hiring an agency that understands the US iGaming marketing needs is also essential. Such agencies dedicate their time to knowing the laws regulating the iGaming sectors of different countries. They pay close attention to the little details you might overlook during digital marketing.
Ultimately, the pros of hiring an expert marketing agency far outweigh the benefits of branding your site yourself. The pros of using a professional agency include:
- Specialization in specific areas which makes information more accurate and precise.
- Offering scalability and flexibility for tasks given to them.
- Access to the latest technologies and tools that may be impractical for brands doing their marketing themselves.
- Saves you time and effort.
Using a gambling marketing agency also comes with some cons. It can be a bit more expensive to hire an expert than an amateur or someone who does not know the industry well. But, such an amateur will do your website more harm than good. For instance, he might not know about the latest Google core update on content marketing. He might even know nothing about wordpress or the recent WordPress 6.4 update. We are also in the era of ChatGPT and custom GPTs. Today, only the best marketing agencies can use custom GPTs to get excellent results.
So, you are benefiting far more than you think when you contact a professional marketing agency for site branding.
