The U.S. iGaming industry is on track to overtake the U.K. as the world’s largest online gaming market by gross revenue by the end of this year, according to a new report from intelligence firm Vixio.
Vixio’s June 2024 U.S. iGaming Outlook report forecasts a 22% year-on-year growth in total U.S. iGaming gross gaming revenue, reaching $8.2 billion in 2024. This growth, bolstered by the recent launch of online gaming in Rhode Island, will push the American market ahead of the U.K. market, which is expected to be worth $7.5 billion this year.
Even under a conservative scenario where no additional states approve iGaming legislation in the next three years, Vixio predicts the U.S. iGaming market will approach $11 billion by 2027.
The report highlights that U.S. iGaming has seen significant growth since 2019, driven by changes in player behavior during the COVID-19 pandemic and the cross-sell opportunities from the rapid expansion of online sports betting across the country.
The Vixio report points to New Jersey as a prime example of market growth, noting that the state’s iGaming market almost quadrupled in size between 2019 and 2023. As of July 2024, seven U.S. states offer commercial online gaming, with Rhode Island joining the ranks in March.
In addition to these states, 10 states provide interactive or online lottery games, with Michigan, Rhode Island, and Pennsylvania offering both iGaming and iLottery. The report anticipates that U.S. iGaming will continue to expand at a rate of approximately one new state launch every other year, maintaining the growth momentum seen in the years following the pandemic.
Despite the growth, the report also highlights legislative challenges that could slow progress. Six states considered bills to authorize iGaming during their 2024 sessions, but none approved legislation.
Maryland came the closest, with a House-approved bill failing to advance in the state Senate. Other states, including Illinois, Iowa, Maine, New York, and Wyoming, also discussed potential changes to state laws on iGaming.
Vixio identifies New York and Illinois as significant opportunities for revenue growth, though both states face substantial obstacles to approval. The report notes that policy discussions for iGaming are more complex and take longer to progress through state legislatures compared to sports betting, partly due to skepticism from lawmakers and concerns about cannibalization from the land-based casino industry.
“The U.S. now overtaking the U.K. highlights the U.S. iGaming paradox in 2024,” wrote Vixio Gambling Compliance Chief Analyst James Kilsby.
“Online casino games are generating significant revenue, especially in the three key markets of New Jersey, Pennsylvania, and Michigan. Yet, industry advocates are encountering more opposition in their efforts to expand regulation to additional states, as certain land-based casino operators and labor unions point to concerns of cannibalization and perceived competitive imbalances in online gambling.”
Vixio anticipates legislative discussions in 2025 or beyond in several additional states, including Colorado, Louisiana, New Hampshire, Ohio, and Virginia.
Original article: https://www.yogonet.com/international/noticias/2024/07/17/73174-us-igaming-industry-projected-to-surpass-uk-market-by-end-of-2024-according-to-new-report
