In 2023, the United States’ most profitable industry is the commercial banking industry $462.5 billion), followed by life insurance and annuities ($242.2 billion) and the private equity, hedge funds, and investment vehicles industry ($149.1 billion). But, slowly, over time, the people’s favourite industry in the US has become the online gambling market, which is expected to have a CAGR growth of nearly 18% over the next five years.
The US online gambling market has seen steady growth since Q3 2021, and monthly users on various online casino platforms are increasing because of convenience and user experience. This usage is particularly popular with younger generations, with a 2022 research study discovering that 48% of US millennials have wagered online. The study also found that 36% of Generation Z in the US have also placed bets via online casinos.
Online Gambling And The US’ Contribution To The Market
Today, consumers want to interact with brands that offer experiences rather than just attractive product features and attributes. This phenomenon is known as experiential marketing, and the online casino industry does it exceptionally well. Online casino platforms offer various products (i.e., traditional games like poker). However, they also offer games with live technology that let players interact with real dealers in real-time, adding to the experience. Online gamblers also access extra online bonuses they can’t typically get at a land-based casino.
End users and game types segment the US online gambling market. Users can play games like slots, baccarat, and blackjack on their desktop or mobile app. However, the majority of online bets today are placed through mobile apps. For perspective, 70% of the US online betting revenue came from mobile devices in 2020. The US online gambling market is also segmented by state. For example, Nevada held the highest gross gaming revenue of casinos in 2021 ($13.43 billion), followed by Pennsylvania ($4.83 billion) and New Jersey ($4.74 billion).
A Look At The Other Side Of The North American Market
Interestingly, though, the US’ neighbor, Canada, is also seeing growth in its online gambling market. That is particularly true in Ontario, where the province’s sports-betting industry has reached over $880 million in gaming revenue since going live on April 4, 2022. According to this online casino review platform, over 30 online casino platforms are currently registered in Ontario. Some of the best in Ontario include Betway Casino and JackpotCity Casino. While Ontario is the epicenter of Canada’s online gambling market, this industry is likely to grow in other provinces since players can access games via offshore online casinos in other provinces, such as British Columbia or Quebec.
To continue the growth of the online gambling industry in the United States, many big player companies are shifting their attention to expanding their brand portfolios and investing in research and development to enhance the user experience even more. Interestingly, while the US has a solid online gambling market, Canada is making several strides to compete with its neighbor, particularly in the sports betting niche.
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