The Expected Rise of America Online Casino Revenue in 2025

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When other countries were jumping at the chance to capitalize on online casinos, the US was on the sidelines, held back by its regulatory framework. After all, gambling laws in most states prohibited players from engaging in online casino gaming and barred online casino operators from offering their services.

But this landscape is slowly changing as it gives way to more of the top online casino sites to dip their toes into these largely unchartered waters. As such, casino revenues have been looking up and are expected to hit a new record in 2025. We explain the reasons for this growth and the numbers that you can expect.

What to Expect in 2025: The Numbers Speak for Themselves

The online casino market in the US is still picking up pace as online gambling is only legal in a few states. Even so, it’s been growing at a steady rate. Consider the figures below:

• 2020: $3.2 billion.
• 2021: $4.0 billion.
• 2022: $4.8 billion.
• 2023: $5.5 billion.
• 2024: $6.3 billion.

In as little as five years, the numbers have doubled. But they are not quite done growing yet. As of 2025, many research organizations have come forward with their market predictions. Grand View Research, for example, estimates that the market will hit a whopping $5.97 billion in 2025.

The American Gaming Association has its figure at a much higher rate, indicating that the year will end with $7.4 billion in revenue. Other reports have also come up, resulting in an average expectation of anything from $$6 billion to $8.8 billion.

These same projections show that this market will experience a compound annual growth rate (CAGR) of 9.2% in the next four years. As such, this figure will continue increasing with each year that passes.

Explaining the Growth

A 9.2% CAGR is the kind of growth that most industries would wish to have. For context, the tourism industry has 6%, fruit and vegetable processing has 5%, and airport operations has 6%. As such, for online casino revenue to show such promise, it must have some significant underlying factors that are fostering its growth. What are they?

Technological Advancements

The online casino industry would not exist were it not for technology. As such, it adapts to the current technological shifts to ensure that it meets the dynamic user needs. So far, the following changes have resulted in a larger uptake of casino games in the US:

1. Augmented reality (AR). Graphics go a long way in simulating the traditional casino experience. And with AR, players can barely tell the difference between playing at home and heading to the local casino. There are speculations that operators could soon introduce virtual reality in their games.
2. Social features. More players are signing up for casinos to have the chance to interact with others and form relationships with people who share their passions. After all, these spaces now have live chatrooms, community forums, and social media pages where people can meet. What’s more, many operators offer live games that allow players to see and talk to each other as the games ensue.
3. Mobile gaming. Many people have access to mobile phones. Casino operators have leveraged this accessibility by creating games that load fast on mobile devices, be it on web browsers or OS-compatible apps. As such, people can enjoy the games on the go which takes away geographical or time constraints that were previously present in desktop gaming or physical casino premises.

These changes have made the games much more engaging and accessible which makes all the difference for punters who have always craved such convenience.

Changing Consumer Attitudes

Markets rely on the direction of their target audiences. So, how has the US population changed in relation to casinos? Well, in the past, a casino night entailed dressing up and spending a significant amount of money and time on games.

But now, many people are content with staying home and playing games on their phones. Why?

1. The games are cheaper. Not only are the tickets more affordable, but players can also save money on fuel, food, tips, and other expenses that are typical in a physical casino.
2. The games are available night and day. There are no opening or closing times and players can pop in as they wish.
3. The games can be short and fast. Rather than dedicating hours to gaming, players can log in, play for a few minutes, and log off, which allows them to integrate the games into their lives.

While players will occasionally go to the physical casinos for their big gaming nights, they now know that they have a convenient and easily accessible alternative that can meet their needs.

Favorable Regulations

The US has huge potential when it comes to the online casino market. But for a long time, casino operators could not tap into this potential as the regulations did not allow them to offer their services.

Now, more states are opening up to the idea of online gambling, seeing as it offers them access to more revenue that they can use to build better infrastructure for their citizens.

What’s more, the number of people lobbying for the legalization of online gambling continues to grow, signaling that more states could also soon give the green light to online casinos.