Market Overview
| Study Period | 2022 - 2032 |
|---|---|
| Forecast Data Period | 2027 - 2032 |
| Base Year Market Size (2026) | USD 41.35 Billion |
| Market Size (2027) | USD 45.61 Billion |
| Market Size (2032) | USD 89.05 Billion |
| Growth Rate (2027 - 2032) | 14.32 % |
| Market Concentration | Medium |
Major Players *Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. | |
United States Online Gambling Market Analysis by Mordor Intelligence
The United States online gambling market size is expected to grow from USD 41.35 billion in 2026 to USD 45.61 billion in 2027 and is forecast to reach USD 89.05 billion by 2032 at 14.32% CAGR over 2027-2032. State authorization remains the central condition for growth because online sports betting and online casino products require approval in each jurisdiction. The United States online gambling market also benefits from wider mobile access, faster deposits, and product features that keep users active during sporting events. Operators are putting more resources into live wagering, customer data, and league relationships because these areas can support repeat engagement and stronger retention. The next phase depends on whether large states extend approval beyond sports betting, while tighter rules on promotions, deposits, and responsible gambling can raise operating costs. Competition is strongest among national brands with established technology, customer databases, and the ability to spread compliance costs across several states.
Key Report Takeaways
- By game type, sports betting held 45.12% of the United States online gambling market share in 2026, while lottery is forecast to grow at a 16.72% CAGR through 2032.
- By platform, mobile and tablets accounted for 80.12% of revenue in 2026 and are forecast to grow at a 15.78% CAGR through 2032.
- By age group, the 25–34 years segment held 31.14% of revenue in 2026, while the 18–24 years segment is forecast to grow at a 16.14% CAGR through 2032.
- By betting type, pre-match or fixed-odds betting accounted for 58.34% of revenue in 2026, while live or in-play wagering is forecast to grow at a 15.91% CAGR through 2032.
Note: Market numbers in this report are based on Mordor Intelligence's proprietary estimation framework, which combines nine months of actuals with Q4 projections for base year 2026.
Market Trends and Insights
Drivers Impact Analysis of United States Online Gambling Market*
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Legalization of online gambling across U.S. states | +3.8% | National; immediate gains in states approaching iGaming authorization | Medium term (2–4 years) |
| Rising adoption of mobile betting and casino applications | +3.2% | National; most acute in states with high smartphone penetration and younger demographics | Short term (≤ 2 years) |
| Increasing integration of online gambling platforms with professional sports leagues | +1.5% | National, with early gains in markets with NFL, NBA, and MMA franchise density | Medium term (2–4 years) |
| Growing popularity of live betting and in-play wagering | +2.1% | National; accelerating in states with mature operator competition and real-time data infrastructure | Short term (≤ 2 years) |
| Expansion of online sports betting advertising and promotional campaigns | +1.2% | National; concentrated in newly authorized states where brand awareness gaps are largest | Short term (≤ 2 years) |
| Rising use of digital payments and instant deposit technologies | +0.7% | National, with initial gains in jurisdictions where ACH/Open Banking adoption is highest | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Legalization of Online Gambling Across U.S. States
State-by-state authorization remains the strongest expansion path for the United States online gambling market. The American Gaming Association reported commercial sports betting revenue of USD 16.9 billion in 2025, while iGaming revenue in states where it was legal reached USD 10.7 billion[1]. New authorization changes the competitive field because operators must secure licenses, establish local partnerships, and meet jurisdiction-specific compliance requirements before accepting users. The pending discussion around online casino legislation in large states creates a clear opportunity, but its timing depends on political support and tax design. The market can gain scale when lawmakers view regulated activity as a source of public revenue and consumer protections. Rules on identity verification, geolocation, and responsible gambling shape where operators deploy capital and how quickly a newly authorized state can scale.
Rising Adoption of Mobile Betting and Casino Applications
The increasing preference for convenient, on-demand digital entertainment is encouraging consumers across the United States to access gambling services through mobile betting and casino applications. The widespread penetration of smartphones and the availability of high-speed internet enable users to participate in sports betting, online casino games, and lottery activities from different locations. Mobile applications provide features such as live betting, real-time odds updates, interactive gaming interfaces, and personalized promotions, enhancing user engagement. The integration of digital payment solutions further simplifies deposits and withdrawals across gambling platforms. In addition, operators are investing in application performance, security features, and user-friendly interfaces to attract new customers and improve retention.
Growing Popularity of Live Betting and In-Play Wagering
The growing demand for real-time sports engagement is encouraging bettors across the United States to participate in live betting and in-play wagering. These betting formats allow users to place wagers while sporting events are underway, with odds changing according to match progress, player performance, and other game developments. The availability of live betting markets across popular sports, including football, basketball, baseball, and hockey, is expanding wagering opportunities. Mobile sportsbook applications and real-time data feeds enable operators to deliver updated odds and facilitate faster betting decisions. In addition, features such as live statistics, cash-out options, and multiple betting markets within a single event enhance user engagement. Sportsbook operators are increasingly investing in platform capabilities to improve the responsiveness and accessibility of in-play wagering.
Rising Use of Digital Payments and Instant Deposit Technologies
The increasing preference for fast and convenient financial transactions is supporting the growth of digital payment solutions across the United States online gambling market. The integration of debit cards, online banking, digital wallets, and instant payment technologies enables users to fund gambling accounts with greater convenience. Faster deposit processing reduces transaction delays and allows bettors to participate in sports betting and online casino games with minimal interruption. In addition, streamlined payment interfaces and automated transaction processing improve the overall user experience across mobile applications and web-based platforms. Gambling operators are investing in secure payment infrastructure, fraud detection systems, and identity verification technologies to facilitate reliable transactions.
Restraints Impact Analysis of United States Online Gambling Market*
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Increasing scrutiny over problem gambling and gambling addiction | −1.8% | National; most acute in NY, PA, MA where regulatory action and legislative proposals are furthest advanced | Medium term (2–4 years) |
| Restrictions on payment methods, deposits, and financial transactions | −0.8% | National; Pennsylvania and New Jersey where enforcement actions have already materially changed operator behavior | Short term (≤ 2 years) |
| High customer acquisition costs and intense competition among licensed operators | −0.7% | National; concentrated impact in saturated markets where CAC has risen as payback periods lengthen | Medium term (2–4 years) |
| Cybersecurity threats, data privacy risks, and potential financial fraud | −0.6% | National, with elevated exposure in high-volume states and during major sporting events when platform traffic peaks | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Increasing Scrutiny Over Problem Gambling and Gambling Addiction
Problem gambling has become an operating issue for the United States online gambling market because it affects advertising, product controls, and regulatory trust. New York increased funding for problem-gambling services from USD 6 million to USD 12 million, although the State Comptroller reported that the funding remained inadequate relative to wagering activity[2]. The SAFE Bet Act, introduced in March 2025, would place federal limits on advertising during live sports, AI-driven individualized promotions, and large deposits. The National Consumers League found that 93% of notifications from major betting apps contained advertising material, which shows why notification practices are receiving closer attention[3]. Operators therefore face pressure to strengthen consumer safeguards while retaining users in a more disciplined marketing environment. State-level programs and federal proposals can raise compliance expectations even when individual measures are still under review.
Cybersecurity Threats, Data Privacy Risks, and Potential Financial Fraud
Cybersecurity creates a persistent restraint because gambling platforms process payments and retain sensitive customer information. A serious incident can lead to regulatory review, customer losses, and restrictions on payment methods. Failures in identity verification or transaction controls can affect product availability as well as compliance costs. Stronger security, identity verification, and transaction monitoring can protect user trust, but they add expense for operators and suppliers. High customer acquisition costs and intensive competition add a further constraint because weaker brands often lack the scale to spread these investments across a large user base.
*Our forecasts treat driver/restraint impacts as directional, not additive. The impact forecasts reflect baseline growth, mix effects, and variable interactions.
United States Online Gambling Market Segment Analysis
By Game Type:
Sports Betting Anchors Revenue While Lottery Leads GrowthSports betting accounted for 45.12% of the United States online gambling market share in 2026, supported by the growing adoption of digital wagering platforms and the increasing integration of betting services with live sporting events. The segment benefits from the widespread popularity of professional leagues, including the National Football League (NFL), National Basketball Association (NBA), and Major League Baseball (MLB). The expansion of legalized online sports betting across multiple states has improved consumer access to regulated wagering platforms. Mobile applications and user-friendly digital interfaces have further simplified account registration, deposits, and real-time betting activities.
The lottery segment is projected to grow at a CAGR of 16.72% through 2032, making it the fastest-growing game type in the United States online gambling market. This growth is supported by the increasing availability of digital lottery ticket purchasing and subscription services through authorized platforms. Online channels provide consumers with greater convenience by enabling participation without visiting physical retail outlets. The growing adoption of smartphones and digital payment methods is also improving access to lottery products. In addition, the expansion of online lottery services in states where such sales are permitted is creating opportunities for operators to reach broader consumer groups.
By Platform:
Mobile Dominance Shapes Platform Investment PrioritiesMobile and tablets accounted for 80.12% of the United States online gambling market revenue in 2026, making them the leading platform segment. The dominance of mobile devices is primarily supported by the widespread adoption of smartphones and the increasing preference for convenient, on-demand gambling experiences. Mobile applications and browser-based platforms allow users to access online casinos, sports betting, and lottery services without relying on desktop computers. User-friendly interfaces, secure payment options, and simplified account management further enhance the accessibility of mobile gambling platforms. In addition, real-time betting, live casino games, and personalized promotional offers encourage users to engage with gambling services through their mobile devices.
The mobile and tablets segment is projected to grow at a CAGR of 15.78% through 2032, reflecting the continued shift toward mobile-based gambling activities in the United States. The increasing integration of digital payment solutions, including mobile wallets and other electronic payment methods, is simplifying transactions across online gambling platforms. Sportsbook operators and online casino providers are also investing in application enhancements, personalized interfaces, and real-time gaming features to improve customer engagement. The growing availability of live sports wagering and interactive casino games further strengthens the appeal of mobile platforms. In addition, improvements in network infrastructure and smartphone capabilities are supporting faster access to gaming content and more responsive user experiences.
By Age Group:
Gen Z Redefines the Digital Bettor ProfileThe 25–34 years age group accounted for 31.14% of the United States online gambling market revenue in 2026, making it the largest age segment. The segment's leading position is supported by the widespread adoption of digital entertainment and online financial services among young adults. Consumers in this age group generally demonstrate familiarity with mobile applications, digital payment methods, and internet-based platforms, facilitating access to online gambling services. Their participation across sports betting, online casino games, and lottery platforms also contributes to revenue generation. In addition, the availability of mobile-friendly interfaces, live betting features, and personalized promotions enhances engagement among this digitally connected demographic.
The 18–24 years age group is projected to grow at a CAGR of 16.14% through 2032, making it the fastest-growing segment of the United States online gambling market. Growth is supported by the increasing familiarity of younger adults with mobile applications, digital entertainment, and interactive online platforms. The widespread use of smartphones and social media also increases exposure to sports-related content and online gambling brands. Furthermore, the availability of intuitive applications, digital payment options, and real-time wagering features can simplify access to eligible online gambling services.
By Betting Type:
Live Wagering Erodes Pre-Match DominancePre-match or fixed-odds betting accounted for 58.34% of the United States online gambling market revenue in 2026, making it the leading betting type. The segment's dominance is supported by the widespread familiarity of consumers with wagering on sporting events before they begin. Fixed-odds betting allows users to evaluate available odds and potential returns before placing their wagers, providing greater predictability when making betting decisions. The availability of pre-match markets across major sporting events, including football, basketball, baseball, and hockey, further supports participation. In addition, sportsbook platforms offer a wide range of betting options, including match winners, point spreads, totals, and player performance markets, attracting users with different preferences.
Live or in-play wagering is projected to grow at a CAGR of 15.91% through 2032, making it the fastest-growing betting type in the United States online gambling market. The segment's growth is supported by increasing consumer interest in interactive betting experiences that allow wagers to be placed while sporting events are underway. Real-time odds updates enable users to respond to changes in match conditions, team performance, and individual player statistics. The expansion of mobile sportsbook applications has further improved access to in-play markets, allowing users to place bets from different locations during live events.
Geography Analysis
The northeastern corridor holds the largest concentration of the United States online gambling market, led by Pennsylvania, New Jersey, Michigan, Connecticut, and Delaware. These established iGaming states generated nearly 90% of the country’s USD 10.7 billion iGaming revenue in 2025. Pennsylvania remains a leading iGaming jurisdiction. New York generated USD 1.3 billion in mobile sports betting tax revenue in State Fiscal Year 2026. The region’s revenue base helps major operators test products before wider deployment.
The Midwest and Southeast represent the next important pool of volume. Illinois already allows online sports betting, and iGaming legislation could expand its revenue base if approved. Ohio and North Carolina have authorized online sports betting, while North Carolina has reviewed online casino expansion. Florida operates online sports betting through the Seminole Tribe’s gaming compact, creating a different model from conventional state licensing. The broader Southeast has a two-tier structure between states with full iGaming and those that permit sports betting only.
California and Texas remain unregulated for online commercial sports betting despite their large populations. Their eventual authorization would create a major addition to the United States online gambling market, but prior ballot and legislative efforts have not succeeded. The American Gaming Association estimated that illegal gaming devices, offshore sportsbooks, and illegal online casinos generated USD 53.9 billion in U.S. annual revenue and deprived states of more than USD 15 billion in tax revenue.
Competitive Landscape
Market Concentration
The United States online gambling market is consolidated, with a limited number of established operators accounting for a significant share of market revenue. Prominent players include Flutter Entertainment plc, DraftKings Inc., MGM International, bet365 Limited, and Caesars Entertainment, Inc. These companies maintain competitive positions through strong brand recognition, extensive digital platforms, and diversified online gambling offerings. Their presence across sports betting and online casino gaming enables them to cater to a broad consumer base. The concentration of established operators contributes to intense competition for market share, customer acquisition, and retention.
Leading companies focus on technological innovation, mobile platform enhancements, and the expansion of their online gambling portfolios to strengthen their market positions. Investments in user-friendly applications, live betting features, personalized promotions, and secure digital payment systems help improve customer engagement. Strategic partnerships with sports leagues, media organizations, and technology providers also support brand visibility and platform development. In addition, operators use promotional campaigns and loyalty programs to attract new users and encourage repeat participation. These strategies play an important role in differentiating established brands in an increasingly digital and competitive marketplace.
The competitive landscape is also influenced by state-level legalization, licensing requirements, and regulatory compliance obligations across the United States. Established operators with substantial financial resources, recognized brands, and scalable technology infrastructure are better positioned to navigate these requirements and enter newly regulated markets. Expansion into additional states, where permitted, provides opportunities to broaden customer reach and increase revenue potential. However, companies must continue to manage customer acquisition costs, promotional spending, and compliance-related expenses while maintaining profitability.
United States Online Gambling Industry Leaders
-
Flutter Entertainment plc
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DraftKings Inc.
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Caesars Entertainment, Inc.
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bet365 Group Limited
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MGM Resorts International
- *Disclaimer: Major Players sorted in no particular order
United States Online Gambling Market Companies Covered in this Report
- Flutter Entertainment plc
- DraftKings Inc.
- MGM Resorts International
- Caesars Entertainment, Inc.
- bet365 Group Limited
- PENN Entertainment, Inc.
- Fanatics Holdings, Inc.
- Rush Street Interactive, Inc.
- Seminole Hard Rock Digital, LLC
- Bally's Corporation
- Churchill Downs Incorporated
- Maverick Gaming, LLC
- Circa Sports Illinois LLC
- Delaware North Companies, Incorporated
- Golden Nugget Online Gaming, Inc.
- Wynn Resorts, Limited
- MGM Resorts International
- International Game Technology PLC
- Playtech plc
- Evolution AB
Recent Industry Developments in United States Online Gambling Market
- August 2026: The NFL announced multi-year commercial agreements with DraftKings, FanDuel, and Fanatics Betting and Gaming, granting all 3 operators NFL marks, access to real-time Next Gen Stats and BetVision through exclusive data partner Genius Sports, and presence at Super Bowl and NFL Draft events. Fanatics added an Official Online Casino Marketing Partner designation.
- June 2026: DraftKings launched DKeX, a proprietary prediction markets exchange, integrated into the Sports & Casino application. The launch expands DraftKings' product toolkit beyond traditional sportsbook formats and increases control over pricing and user experience through owned exchange infrastructure.
- June 2026: DraftKings expanded its regulated footprint by launching a multi-state online poker liquidity network across Michigan, Pennsylvania, and New Jersey. The rollout supports deeper player pools and increased cross-state engagement within the regulated framework.
United States Online Gambling Market Report Scope and Research Methodology
Market Definition and Coverage
For this study, the market covers legal, real money gambling placed online in the United States, where wagers are made through websites or apps and revenue is captured as gross gaming revenue reported to regulators.
Scope exclusions: Offshore unlicensed sites and free-to-play social casino style apps are excluded from this market size.
Segments Covered in This Report
- By Game Type
- Sports Betting
- Football
- Horse Racing
- Tennis
- Other Sports
- Casino
- Live Casino
- Baccarat
- Blackjack
- Poker
- Slots
- Other Casino Games
- Lottery
- Bingo
- Sports Betting
- By Platform
- Desktop
- Mobile and Tablets
- By Age Group
- 18-24 Years
- 25-34 Years
- 35-44 Years
- 45-54 Years
- 55+ Years
- By Betting Type
- Pre-Match/Fixed-Odds
- Live/In-Play
Data Sources, Market Sizing, and Validation
Desk Research
Desk work starts with public regulatory releases that show how online gross gaming revenue is reported and how rules differ by state. We also use official data and publications such as state gaming commission dashboards and annual reports, U.S. Census Bureau population and income series, Bureau of Economic Analysis consumer spending indicators, and Bureau of Labor Statistics inflation metrics to keep dollars and demand context consistent.
To cross-check direction and timing, we review trade association publications such as American Gaming Association releases, along with earnings materials, 10-K filings, investor presentations, and reputable financial press coverage. Where available, patent databases help validate platform feature trends that can influence engagement, for example live betting mechanics. For company financials and news tracking, we reference a paid company financials and intelligence subscription and a news and financials subscription. These examples are not exhaustive, and we also relied on other sources for data collection, validation, and clarification.
Primary Interviews and Surveys
Primary work was used to pressure test our assumptions on state rollout timelines, operator reporting behavior, and how gaming revenue mixes shift between casino games and sports wagering. We spoke with operators, platform and service providers, and state level ecosystem participants, and we kept coverage broad across major online gambling states as well as emerging legalization markets. This balance was intended to make sure the model reflects real demand signals rather than only mature-state reporting patterns.
Distribution of primary research fieldwork respondents
| Company type | Respondent position |
|---|---|
| Top tier: 36% | CXOs: 16% |
| Mid tier: 45% | Functional/Unit leaders: 33% |
| Smaller Players: 19% | Managers: 51% |
Market-Sizing & Forecasting
The size model uses a top-down approach where state reported online gross gaming revenue is reconstructed and then aggregated to a national total, with adjustments for timing differences in reporting periods and rule changes. The totals are then corroborated using selective bottom-up checks, such as sampled operator revenue disclosures, channel checks on active state participation, and implied revenue per active adult online gambler, which helps us identify overcounting and undercounting.
A few practical inputs shape the model, including the count of active legal online states by product, the cadence of new launches, and online share of total gaming revenue where reported. We also account for seasonality around major sports calendars, and we use inflation adjusted consumer spending trends to reflect how discretionary budgets move. When gaps exist, for example limited public detail for early stage states, we use ranges validated through interviews and then narrow them using nearby state analogs with similar regulation and population.
For forecasting, we use scenario analysis since outcomes depend heavily on the pace of state legalization, tax and promotional rules, and product availability by state. Assumptions on take rates, expected online adoption, and revenue normalization after launch are reviewed with industry experts so the forward view stays aligned with what operators and regulators are reporting.
Data Validation & Update Cycle
Outputs are checked against independent signals such as publicly released state revenue totals, reported year over year growth rates, and known launch dates, and then the biggest variances are investigated before final sign-off. If a state shows an abnormal jump or drop, we revisit assumptions, recheck source tables, and, when needed, re-contact interviewees to confirm what changed.
Before delivery, we review the latest public releases again so the numbers reflect recent material events such as major state launches, rule changes, and reporting revisions. The report cadence is annual, and interim updates are made when market moving events occur.
Mordor Intelligence's United States Online Gambling Market Size Measured Against Other Published Estimates
Published market sizes for US online gambling often differ because writers mix different revenue lines, apply different legal coverage rules, and sometimes use handle or player spend proxies instead of reported gaming revenue. Timing also matters, since a single new state launch can move the annual run rate quickly.
The table below shows that the widest gaps are driven by scope rather than calculation. In Mordor Intelligence's model, the total is limited to regulated, state licensed real money online gambling revenue reported as taxable gross gaming revenue, instead of broader online gaming activity totals that can blend retail sports betting, adjacent gaming, or non-licensed play.
Benchmark comparison
| Source | Market Size | Gaps in Research Methodology |
|---|---|---|
| Mordor Intelligence | USD 5.95 B (2025) | |
| Industry Association A | USD 22.12 B (2024) | Often presented as combined online gaming and online sports betting revenue, which can represent a broader reported online total than a strictly defined online gambling revenue pool for a single base year, and it is tied to a different year with different legalization and launch timing. |
| Trade Journal B | USD 13.78 B (2024) | Focuses on online sports betting revenue only, so casino style iGaming, online poker, and other regulated online gambling categories are not counted, which naturally pushes the figure below a full online gambling total. |
Taken together, the comparison shows that the biggest driver is scope, not math. By anchoring the model to state reported online gross gaming revenue, and then validating with launch timing and mix shifts between products, we get a transparent figure that can be traced back to clear public signals and repeatable checks.
Key Questions Answered in the Report
What is the projected value of the United States online gambling market by 2032?
The United States online gambling market is projected to reach USD 89.05 billion by 2032, rising from USD 45.61 billion in 2027 at a 14.32% CAGR.
Which game type leads U.S. online gambling revenue?
Sports betting leads by game type with a 45.12% revenue share in 2026.
Why are mobile betting applications important for operators?
Mobile and tablets held 80.12% of revenue in 2026 and are forecast to grow at 15.78% CAGR, making app performance, deposits, and location controls central to customer experience.
Which age group is expanding most quickly in online gambling?
The 18–24 years group is forecast to grow at 16.14% CAGR through 2032.