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The US online gambling market size is estimated to grow by USD 46 billion, at a CAGR of 10.87% between 2023 and 2028. The market's trajectory is influenced by several pivotal factors, including the easing of government regulations surrounding online gambling, which opens up new opportunities for industry growth and innovation. Additionally, the wider reach of online gambling platforms expands the market's accessibility, reaching a broader audience and driving increased engagement. Moreover, the growth in spending capability of customers plays a significant role in fueling demand within the market, as consumers have more disposable income to allocate towards entertainment and leisure activities like online gambling. Together, these factors contribute to the dynamic evolution of the market, shaping its landscape and fostering opportunities for further expansion and development in the digital gambling industry.
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The market has witnessed significant growth in recent years, driven by the increasing popularity of casino games, sports betting, poker, bingo, and lotteries. The market is expanding beyond desktops to mobile devices, with 5G technology enabling faster and smoother gaming experiences. AI, VR, and AR are transforming the industry with immersive and interactive experiences. Sports Betting and Casinos are major segments, with the Gambling Commission regulating the industry to ensure fairness and security. Virtual casinos, live dealer games, and mobile gambling apps are becoming increasingly popular. Mobile-optimized websites and mobile payment systems facilitate seamless transactions. Virtual reality (VR) and augmented reality (AR) are revolutionizing the user experience, while blockchain technology and cryptocurrencies offer enhanced security and anonymity. The industry applications are vast, including rugby, soccer, and other sports. The market is expected to continue growing, with major events like the FIFA World Cup and the Olympics driving demand. Cybersecurity remains a concern, with measures being taken to ensure user privacy and data protection.
The easing of government regulations is a key driver boosting the market growth. In 2006, the Unlawful Internet Gambling and Enforcement Act prohibited online gambling in the US, but regulations evolved in 2012, allowing individual states to license online casinos, sportsbooks, and poker sites.
As of 2023, New Jersey, Delaware, Michigan, West Virginia, Pennsylvania, and Connecticut permit online gambling. Anticipating further state legalization, benefits include revenue through taxes, job creation, economic strengthening, and contributions to societal welfare. The relaxation of regulations is a key driver for the forecasted growth in the online gambling market in the US.
The emergence of VR as cure for gambling addiction is a key trend shaping the market. In addressing online gambling addiction, therapists employ VR as a method. This technique enables addicts to experience controlled virtual environments mirroring their cravings without exposure to real-life triggers. VR aids therapists in studying addicts' behavior during virtual gambling scenarios, allowing them to assess progress.
Moreover, therapists can tailor VR environments to individuals' needs, easing addicts into setups with reduced noise, slot machines, players, and overall intensity. The ongoing trend of using VR to treat gambling addictions is anticipated to contribute to market growth in the forecast period.
The security and credibility issues associated with online gambling is a key challenge hindering market growth. Security and credibility concerns are key impediments to the US online gambling market. Many gambling websites lack a robust dispute resolution system, transparent prize payouts, and fair gaming standards, diminishing the credibility of operators. This issue hampers casino business scalability and deters new user participation.
Further, online gambling platforms are susceptible to cyber threats, capturing sensitive user information vulnerable to hacking. Offshore-run Internet casinos may lack adequate cybersecurity measures, elevating the risk of cyberattacks. Some online casinos use poker bots for optimal play, inflating betting amounts. These security and credibility challenges are expected to restrain market growth in the forecast period.
The desktop segment is estimated to witness significant growth during the forecast period. There are significant advancements in smartphone technologies which is leading to the decline in the adoption of desktops and related technologies across the world. Additionally, there is an increasing shift in preference by consumers from desktop to mobile devices due to the lack of mobility and power consumption issues associated with desktops.
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The desktop segment was the largest segment and was valued at USD 26.50 billion in 2018. On the other hand, desktops are still preferred by some users because of their high-definition displays and better visual experience than small-screen devices such as smartphones. Additionally, there is an increasing preference for larger devices for online gambling by a majority of the US population mainly because of the better gaming experience and bigger display size. Furthermore, several developments in web technologies, including Hypertext Markup Language 5 (HTML5), flash technology, and new Cascading Style Sheets (CSS), have facilitated companies to develop new website- and web-based applications with more intuitive interfaces and features. Hence, such factors are fuelling the growth of the segment which in turn will drive the US online gambling growth during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
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The market has witnessed significant growth in recent years, driven by the increasing popularity of casino games, sports betting, poker, bingo, and lotteries. The market is expanding beyond desktops to mobile devices, with 5G technology enabling faster and smoother gaming experiences. AI, VR, and AR are transforming the industry with immersive and interactive experiences. Sports Betting and Casinos are major segments, with the Gambling Commission regulating the industry to ensure fairness and security. Virtual casinos, live dealer games, and mobile gambling apps are becoming increasingly popular. Mobile-optimized websites and mobile payment systems facilitate seamless transactions. Virtual reality (VR) and augmented reality (AR) are revolutionizing the user experience, while blockchain technology and cryptocurrencies offer enhanced security and anonymity. The industry applications are vast, including rugby, soccer, and other sports.
Further, the market is expected to continue growing, with major events like the FIFA World Cup and the Olympics driving demand. Cybersecurity remains a concern, with measures being taken to ensure user privacy and data protection. The market is evolving rapidly, driven by the B2B operations of platforms catering to younger demographics through mobile technology and desktop platforms. Key players, supported by associations like the Gaming and Betting Association, enhance engagement with push notifications for live betting and real-time data analytics. They attract users with jackpot offerings, bonuses, and loyalty programs, targeting enthusiasts of national leagues interested in personal computers and laptops for seamless gaming experiences. This dynamic environment emphasizes innovation in user experience and gamification, ensuring sustained growth and competitiveness in the global market.
Market Scope |
|
Report Coverage |
Details |
Page number |
123 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.87% |
Market growth 2024-2028 |
USD 46 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
9.54 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
888 Holdings plc, Ballys Corp., Bet365 Group Ltd., Betsson AB, BOVADA.LV, Caesars Entertainment Inc., Delaware Park, DraftKings Inc., Flutter Entertainment Plc, Game Taco Inc., Harrington Raceway and Casino, Infiniti Media Group Ltd., Landrys LLC, Light and Wonder Inc., MGM Resorts International, Midwest Gaming and Entertainment LLC, Rational Intellectual Holdings Ltd., Realtime Gaming, and Resorts Digital Gaming LLC |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Gender
8 Customer Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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