North America Online Gambling Market

North American Online Gambling Market Size

The North America online gambling market size was valued at USD 19.22 billion in 2024 and is anticipated to reach USD 21.58 billion in 2025 from USD 54.42 billion by 2033, growing at a CAGR of 12.26% during the forecast period from 2025 to 2033.

The online gambling is a wide array of digital gaming activities, including sports betting, online casinos, poker, and other forms of interactive gaming. This market has experienced significant growth in recent years, driven by the increasing acceptance of online gambling, advancements in technology, and the legalization of various forms of gambling across several states. The rise of mobile devices and high-speed internet access has further facilitated the expansion of online gambling platforms by allowing users to engage in gaming activities from virtually anywhere. This growth is fueled by several factors, including the increasing number of states legalizing online gambling is the growing popularity of sports betting following the repeal of the Professional and Amateur Sports Protection Act (PASPA), and the rising demand for innovative gaming experiences. The market is expected to witness continuous innovation and diversification by reflecting the evolving preferences of consumers and the competitive landscape of the online gaming market.

MARKET DRIVERS

Legalization and Regulation of Online Gambling

The North American online gambling market is significantly driven by the ongoing legalization and regulation of online gambling across various states. The repeal of the Professional and Amateur Sports Protection Act (PASPA) in 2018 marked a pivotal moment for the industry by allowing individual states to legalize sports betting and other forms of online gambling. According to the American Gaming Association, as of 2022, over 30 states and the District of Columbia have legalized sports betting is contributing to a surge in market growth. This regulatory shift has not only expanded the market but has also provided a framework for consumer protection and responsible gambling practices. States that have embraced online gambling have seen substantial tax revenue generated from gaming activities, further incentivizing others to follow suit. For instance, New Jersey reported over $1 billion in online gambling revenue in 2021 by showcasing the financial benefits of legalization. The North American market is expected to experience sustained growth with increasing acceptance and regulation of digital gaming.

Technological Advancements and User Experience

Another major driver of the North American online gambling market is the rapid advancement of technology, which has significantly enhanced the user experience and accessibility of online gaming platforms. The integration of cutting-edge technologies such as artificial intelligence (AI), virtual reality (VR), and blockchain has transformed the online gambling landscape by making it more engaging and secure. These advancements have led to the development of user-friendly interfaces, seamless payment processing, and enhanced security measures, which are crucial for building trust among consumers. Additionally, the rise of mobile gaming has made it easier for users to access gambling platforms on their smartphones and tablets that is ascribed to fuel the growth of the market. The increasing demand for live dealer games and interactive experiences has also contributed to the growth of online gambling.

MARKET RESTRAINTS

Regulatory Challenges and Compliance Issues

One of the primary restraints affecting the North American online gambling market is the complex regulatory landscape and compliance issues that vary significantly across states. The legalization of online gambling has expanded opportunities with the patchwork of regulations can create confusion and hinder market growth. According to a report by the National Council of Legislators from Gaming States, the regulatory framework for online gambling is inconsistent, with each state establishing its own rules and requirements. This complexity can pose challenges for operators seeking to enter multiple markets, as they must navigate different licensing processes, tax structures, and consumer protection laws. Additionally, the lack of uniformity in regulations can lead to increased operational costs and legal risks for online gambling operators. To address these challenges, industry stakeholders must advocate for clearer and more consistent regulations that facilitate market entry and promote responsible gambling practices by ultimately supporting the growth of the online gambling market.

Concerns Over Problem Gambling and Addiction

Another significant challenge facing the North American online gambling market is the growing concern over problem gambling and addiction. The potential for gambling-related harm increases by prompting calls for enhanced consumer protection measures. According to the National Council on Problem Gambling, approximately 2-3% of the U.S. population experiences gambling problems with the need for effective interventions and support systems. The rise of online gambling has raised concerns about the ease of access to gambling activities for vulnerable populations. Operators are increasingly being held accountable for implementing responsible gambling measures, such as self-exclusion programs, deposit limits, and access to support resources. Failure to address these concerns can lead to reputational damage and regulatory scrutiny by hindering market growth. It is essential for stakeholders to prioritize responsible gambling initiatives and collaborate with regulatory bodies to ensure that consumer protection remains a top priority by fostering a sustainable online gambling environment.

MARKET OPPORTUNITIES

Expansion of Sports Betting

The North American online gambling market presents significant opportunities for growth through the expansion of sports betting. Following the repeal of PASPA in 2018, many states have moved to legalize and regulate sports betting, leading to a surge in market activity. The increasing acceptance of sports betting, coupled with the rise of mobile applications and online platforms, has made it easier for consumers to place bets on their favorite sports events. Additionally, the integration of live betting features and in-play wagering options enhances the overall user experience, attracting a broader audience. The demand for online sports betting platforms is expected to rise significantly by creating lucrative opportunities for operators and stakeholders in the North American online gambling market.

Growth of Online Casino Gaming

Another promising opportunity within the North American online gambling market lies in the growth of online casino gaming. The online casinos have gained popularity by offering a wide range of games such as slots, table games, and live dealer options as consumers increasingly seek diverse gaming experiences. The ability to access online casinos from anywhere, combined with the convenience of mobile gaming, has contributed to the sector's expansion. Additionally, the introduction of innovative features such as gamification and social gaming elements enhances user engagement and retention. The demand for online casino solutions is expected to grow significantly is positioning this segment for rapid expansion in the North American online gambling market.

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Type Insights

The sports betting segment was the largest and held 40.5% of the North America online gambling market share in 2024. This dominance can be attributed to the increasing popularity of sports betting following the legalization of various forms of gambling across multiple states. The surge in sports betting can be attributed to several factors, including the rise of mobile applications that facilitate easy access to betting platforms and the increasing number of sporting events available for wagering. Additionally, the integration of live betting options and in-play wagering features enhances the overall user experience by attracting a broader audience. The demand for online sports betting solutions is expected to remain strong due to its position as the largest segment in the North American online gambling market.

The online casinos segment is swiftly emerging with a CAGR of 20.4% from 2025 to 2033. This growth is driven by the increasing demand for diverse gaming experiences and the convenience of accessing online casinos from anywhere. Online casinos offer a wide range of games, including slots, table games, and live dealer options by catering to various consumer preferences. The ability to play from mobile devices and the introduction of innovative features such as gamification and social gaming elements enhance user engagement and retention. The demand for online casino solutions is expected to grow significantly as more states legalize online casino gaming and as consumer preferences shift towards digital platforms.

By Device Insights

The desktop segment dominated the North America online gabling market share of 55.4% in 2024. This dominance can be attributed to the traditional preference for desktop computers among online gamblers, particularly for activities that require a larger screen and more complex interfaces, such as poker and casino games. Desktop platforms offer a comprehensive gaming experience, allowing users to access a wide range of games and features that may not be available on mobile devices. The larger screen size and enhanced processing power of desktop computers facilitate smoother gameplay and better graphics, which are particularly appealing for high-stakes gamblers and serious players. The desktop segment is expected to maintain its leading position with the growth of mobile gaming may gradually shift the dynamics of the market.

The mobile segment is projected to experience a CAGR of 25.4% from 2025 to 2033. This growth is driven by the increasing adoption of smartphones and tablets, which enable users to access online gambling platforms conveniently from anywhere. Mobile gambling offers unparalleled convenience, allowing users to place bets and play games on the go. The development of user-friendly mobile applications and responsive websites has enhanced the overall user experience by making it easier for consumers to engage with online gambling platforms. Additionally, the integration of features such as live betting and in-app promotions further drives user engagement. The demand for mobile gambling solutions is expected to grow significantly as consumer preferences continue to shift towards mobile gaming.

COUNTRY ANALYSIS

The United States dominated the North American online gambling market with an estimated share of 70.2% in 2024. The U.S. market is characterized by a robust demand for online gambling solutions driven by the legalization of various forms of gambling across multiple states. The presence of major online gambling operators and a well-established regulatory framework further contribute to the country's dominant position in the market. Additionally, the growing acceptance of online gambling among consumers and the increasing number of states legalizing online gaming are driving investments in innovative platforms. It is expected to maintain its growth trajectory, supported by technological advancements and changing consumer preferences.

Canada is likely to witness a CAGR of 25.6% during the forecast period. The Canadian online gambling market is influenced by the country's diverse regulatory landscape, which varies by province. The Canadian government has implemented various initiatives aimed at promoting responsible gambling and enhancing consumer protection, further driving the adoption of online gambling solutions. Additionally, the growing focus on digital health and safety measures has led to an increase in online gaming participation. The emphasis on innovation and regulatory compliance is expected to drive further growth in the Canadian online gambling sector by positioning it as a key player in the North American market.

KEY MARKET PLAYERS

DraftKings Inc., Caesars Entertainment, Inc., MGM Resorts International, FanDuel Sportsbook, 888 Holdings PLC (Evoke, plc), Flutter Entertainment PLC, BetMGM Sportsbook, bet365 Sportsbook, PENN Entertainment, Inc., Fanatics Sportsbook. are the market players that are dominating the North America online gambling market.

MARKET SEGMENTATION

This research report on the North America online gambling market is segmented and sub-segmented into the following categories.

By Type

• Sports Betting
• Online Casino

By Device

• Desktop Segment
• Mobile Segment

By Country

• North America
• U.S.
• Canada
• Mexico