In recent years, the online casino industry in the US has really taken off. While land-based casinos have usually been restricted to certain cities and tribal grounds, online casinos allow people to play from anywhere. Offering thousands of games as well as bonuses and quick payments, these sites are much more convenient than playing in person.
Online casinos were initially banned in the US. However, many states have now legalized them, and the industry is growing each year. More people than ever are now signing up to play casino games online, and this trend is expected to continue over the next few years.
The industry is expected to grow at a compound annual growth rate (CAGR) of 17.34% between 2022 and 2027. This change has come as new technology, and better regulations have made online casinos more accessible and exciting than ever before.
As the world continues to change and new technological innovations make our lives easier, we can expect a lot of industries to change too. The online casino industry is expected to continue its growth as more people transition from playing at land-based casinos to playing at online casino sites. In this article, you can learn more about the growth rate of the US online casino industry, including the reasons for growth and current market trends.
The industry is expected to grow at a compound annual growth rate (CAGR) of 17.34% between 2022 and 2027Researchandmarkets.com
The History of Online Casinos in the US
The first online casino appeared in 1996, allowing people to play casino games such as blackjack and roulette online for the very first time. While the internet was still relatively new, online casinos quickly became very popular, allowing people to gamble money online for the first time. The software used was relatively new, but all of the most popular casino games were still available to play.
|Before long, the number of available online casinos had quickly grown. In 1996, there were only a handful of available sites. Just one year later, there were already hundreds. As the sites continued to become more popular, new games were created, and improvements were made
|By the end of 1997, online casinos had generated over $1 billion in revenue. However, these early online casinos only offered a few games and were sometimes difficult to use. It wasn’t easy to make payments online, and there were risks involved. As they were so new, regulations and safety measures hadn’t yet been established. As a result, many players still stayed clear of online gambling and continued to play at land-based casinos.
|Because of concerns over player safety, as well as a general negative sentiment towards gambling, the US government enacted new laws. In 2006, the Unlawful Gaming Enforcement Act (UGEA) was passed. Before this act, gambling was technically illegal, although online players weren’t at risk of legal trouble. Once UGEA was passed, depositing and withdrawing funds at an online gambling site was illegal and punishable by law. Due to this new US law, many sites immediately shut down while others stopped accepting US players. The law didn’t punish online gambling itself but instead made it difficult for payment providers to do business with gambling sites. As a result of this, many online casino brands pulled out of the US market, and most players thought that things were over for US online casinos.
|Some websites persisted despite the ban and continued to welcome US gamers into their platforms. PokerStars, Absolute Poker, and Full Tilt Poker are among them. However, in 2011, the US government took action against these sites, and they were barred from operating in the US. Since then, attitudes towards online gambling have changed somewhat. Many people have continued to play at online gambling sites, regardless of any bans. While the law made it difficult at first for online casinos to accept US players, they have found ways around it. Now, many US players still enjoy offshore online casinos, which still provide a safe and enjoyable experience.
Because US players were still signing up and using online gambling sites, many legislators realized the futility of laws against online casinos. The laws only meant that players were depositing funds in offshore sites rather than regulated casinos based in the US. As a result, they were missing out on tax revenue. New Jersey was the first state to fully legalize online casinos, leading to an enormous boost in yearly tax revenue for the Garden State. This has led to more states following suit.
What is Behind the Growth of Online Casinos in the US
The growth in usage of online casinos in the US is down to two main reasons. The first reason is that more states than ever are now legalizing online casinos. So far, just six states have legalized online casinos over the last few years, but many more could be on the way. New Jersey and Delaware were the first, followed by Pennsylvania, Michigan, Connecticut, and West Virginia.
Since legalizing online casinos, these states have seen a big increase in tax revenue. Rather than playing at offshore sites, players who live in these areas can sign up to play at legal and regulated online casinos. Not only is this safer for the players, but it also ensures that the revenue they make is taxed and used to fund local communities.
Online gambling on the whole is on an upward trend in the US, and regulated online casinos have certainly made it more accessible. However, playing at offshore sites is also growing in popularity. Because a lot of states are still without legal online casinos, many players are now signing up to play at unregulated sites too. The growth of crypto casinos and sites that accept US players have helped make online casinos easier than ever to play at.
Aside from being more accessible, online casinos have also become more enjoyable than ever to use. Early online casinos were slow and had small collections of games that took a long time to load. Modern online casinos have thousands of high-quality games and work perfectly on mobile devices such as tablets and smartphones. This has helped to make online gambling more appealing than ever, leading to the industry’s continued growth.
US Online Casino Trends
The US online casino market is growing each year as new players sign up to play. In addition, changes to regulations are making it safer and easier for people to play casino games online, helping to create more tax revenue for local governments. Online casinos themselves are changing too, as they try to meet the demand from a growing player base.
This is a highly competitive market, with the biggest online casinos able to earn hundreds of millions of dollars each year. Online casinos must develop and adapt to new trends if they want to have continued success in such a fast-growing market. Here are some of the current US online casino trends that site operators should be aware of.
Pennsylvania is the Fastest Growing Market
Although New Jersey remains the biggest market for online casinos, PA is the fastest-growing. Pennsylvania became the fourth US state to fully legalize online casino gaming in 2019, and it’s also the biggest in terms of population. NJ has had legal online casinos since 2013, with more than a dozen legal online casinos now operating in the state.
NJ online casinos currently make more than $225 million a year, bringing in a significant amount of tax revenue. However, Pennsylvania is closing in on the number one spot. In November 2021, PA online casinos recorded more than $84 million. Overall, the state has total gaming revenue of nearly half a billion, with the numbers from sportsbooks and land-based casinos also contributing.
Live Casino Gaming is the Most Popular
Live casino games have quickly become the most popular casino games at European online casinos. In the US, regulations, and restrictions have prevented them from becoming as common, but many US sites are starting to provide them. These games give players a more realistic experience, with developers such as Evolution and Pragmatic Play offering the best games.
Over the coming years, it’s expected that more sites than ever will offer full live casino sections, allowing players to enjoy the best games. As these live dealer options become popular with US players, casinos could innovate and create newer and more exciting games. The industry is rapidly changing and evolving to meet player demand, and new games are always a key factor in which sites players choose to sign up to.
Virtual Reality Casinos Aren’t Far Away
While live casino games go a long way to providing realism, they could yet be overtaken. Virtual reality technology is still in its early stages, but it’s beginning to have more mainstream appeal as the cost of the equipment comes down. More casino software developers are also starting to experiment with the tech, which could lead to the most realistic casino games yet.
The future of US online casinos could be in virtual reality, allowing players to find a table with their friends in a completely virtual casino. While this may still be a long way off, the industry is growing rapidly, and so is the technology. Live casino games were first created many years before they became popular, and the same could be true for virtual reality casino games.
The online casino industry is growing fast in the US. While things may have gotten off to a shaky start, many states are now looking to legalize and regulate online gambling sites, drawn in by the large amount of tax revenue that they can produce. For players, this is excellent news, as while offshore sites have still been accessible, a fully regulated market usually means better options.
As more players in the US sign up to use online casinos, the demand for the best games and bonuses increases. Sites have to increasingly compete with one another to offer the best features and experiences. If the US online casino market is to continue growing, it needs to adapt to the needs of the players and ensure that they’re always put first.