After being hit hard by the COVID-19 pandemic, the American economy is on the road to recovery. Though the economy has not completely revived, some industries seem to be doing better than others. One industry that managed to keep its revenues high both during the lockdown and after its lifting is the online gambling industry. The massive growth of the online gambling industry is mostly attributed to the nationwide lockdown engendered by the pandemic. The fact that the iGaming industry in the U.S. was already booming even before the lockdown is often disregarded.
The post-Pandemic Growth
Though the iGaming industry was already predicted to expand even before the pandemic broke out, the expansion that happened during the lockdown was higher than the initial expectations. According to ReportLinker, the U.S. iGaming industry was valued at $1,978.57 million in 2020. And a recent report by Research and Markets projects this number to increase to $92.9 billion by 2023. According to the same report, the U.S. iGaming is predicted to expand at the rate of 11.6% annually.
These statistics corroborate the fact that the U.S. is a land of great opportunity when it comes to iGaming. There’s opportunity not only for online casino operators but also for players. At a time when almost all other industries are struggling to just get by the day, the iGaming industry is all set to thrive.
With more and more states legalizing online gambling, there has been a massive influx of both online casinos and players in the market. The U.S. iGaming industry started to flourish shortly after the Supreme Court made the historic decision to legalize sports betting in May 2018. This created opportunities for both states and players. The financial incentives that come with the legalization of iGaming in a particular state is massive for the state as well. For example, the iGaming revenue of Pennsylvania reached a record $98.6 million in May 2021. Similarly, monthly revenue for the month of June amounted to $114.2 million in Michigan’s rapidly growing iGaming market.
U.S. iGaming Industry in the eyes of the World
The United States, due to its time-honoured bans on iGaming, is deemed as less lucrative than its counterparts i.e., the Canadian iGaming industry or the Australian iGaming industry. However, the laws have been considerably moderated from the past in almost all states across the country. The only two states that ban gambling entirely are Hawaii and Utah due to their massive religious communities.
There are many states that allow gambling but not online betting like Indiana, Illinois, New York, Nevada etc. Lobbyists and politicians across these states are trying hard for a change and a policy change may soon be happening in these states.
The Future of U.S. iGaming
The recent market trends show that the future is even brighter than the present for the U.S. iGaming Industry. Online gambling platforms rely on technology to provide an immersive gambling experience to players. The more advanced technology a country has, the higher its iGaming revenue is going to be. The U.S. can seize the initiative when it comes to well-designed tech.
With technology like Blockchain that eliminates the requirement of a third-party to process bets, there are a lot of implications. Blockchain can act as a primary force that drives the entire industry. If Blockchain makes its way into the iGaming industry, it will not only enable the legalization of iGaming across various states but will also enable policy changes like validation of cryptocurrency in iGaming. Moreover, with the U.S. doing wonders in artificial reality and virtual reality, it’s safe to say that the U.S. iGaming industry has the potential to overthrow world’s iGaming leaders through technological innovation.
