In recent years in the United States, in-person and online gambling has exponentially increased in popularity. This can be attributed to myriad influential factors, including the rapid advancement of gambling technology, the ubiquity of smartphones and tablets, more people working from home and living adaptable lives, and an overall uptick of participants engaging in this form of entertainment that continually diversifies its appeal.
Moreover, with many states legalizing online gambling websites, revenue streams are anticipated to continue to increase in 2023 as per aGamble.com. Sports betting has been a major contributor, with an overall increase of more than 68% in 2020 largely due to its legalization by the Supreme Court ruling two years previous.
Subsequently, 19 US states passed regional laws allowing sports betting, rising to 28 that accommodate mobile sports gambling (and 36 that allow some form of sports betting) at the time of writing. Analysts predict that the sports and iGaming market in the US alone will be worth $15 billion by 2025, with this figure potentially doubling by 2030.
However, 14 states still prohibit sports betting of any kind and are typically concerned with the potentially negative effects of betting on culture. This article presents an overview of the current state of gambling in the US, providing relevant statistics, analysis of recent trends, and commentary on positive and negative outcomes.
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The most popular forms of online gambling
According to a survey by Statista in September 2021, sports betting is the most popular type of online gambling in the US overall. This accounts for 40.3% of total gambling revenue in the US. According to Statista, this is closely followed by the lottery draw (31%) and casino games. Poker generates $3.7 billion of total revenue in the US, followed by casinos (generating $2 million) and lotteries ($1 million).
Typically, online gambling platforms attract more younger adults than older generations, perhaps reflecting the higher technology adoption rates of the former. Almost 10% of adults in the US who regularly bet online or in person engaged at least once a week. However, online gambling is exponentially increasing each year, with a record set in 2022 of $54.9 Billion in revenue generated.
US gambling revenue stats
In early 2023, the US is predicted to contribute about 50% to global revenue on online gambling sites. This has only been augmented by the emergence of innumerable diversified markets, such as esports and other outlets that involve a betting option. Live casinos remain less popular than other forms of betting, with only six states where this form of gambling is legal – including West Virginia, Michigan, Pennsylvania, Delaware, Connecticut and New Jersey. A survey conducted by Time2play indicated that 43.44% of bettors still prefer to play in a physical casino while 27% played in both land-based and online casinos (with 15.35% solely at online casinos).
In 2020, 61.6% of online gambling revenue was generated by sports betting. The industry has been exceptionally profitable; for example, the tax generated from Pennsylvania alone since the legalization of sports betting exceeds $1 billion. Revenue in sports betting online is anticipated to reach $7.62 billion in 2023, breaking further records in profits. Proponents of betting typically cite increased revenue streams for each state as beneficial, while detractors identify increased gambling as negative due to potential addiction for participants. The following sections give an overview.
The benefits of legalized gambling in the US
Supporters of legalized gambling in the US have commented that revenues from this form of entertainment facilitate different states to raise money for public services that circumvent directly raising taxes. Moreover, many operators advertise their services by promoting what portion of their profits will be donated to local development, such as education or charities.
In addition, gambling creates jobs in construction, operation and maintenance, as well as indirect employment created for the tech and advertizing industries. Additionally, it generates significant employment in the hospitality, retail, tourism, and service sectors.
Potential drawbacks of increased gambling
Critics of widespread gambling in the US typically cite addiction increases, higher levels of crime, social costs, and displacement of other forms of business as the most problematic drawbacks. However, in 2023, betting companies are endeavoring to reinvent themselves as more solicitous and progressive, investing in responsible gambling campaigns and providing confidential support to their patrons.
Moreover, new technology has been developed that provides self-limiting mechanisms on online platforms to prohibit problematic levels of gambling, with strict caps on bet sizes and time limits. With many prospective gamblers across the US traveling to states that allow these forms of entertainment, it may be only a matter of time before additional local governments pass new bills legalizing various elements of betting.
