The United States regulated online gambling market has reached a critical inflection point. What began as a patchwork of state-level experiments has evolved into one of the fastest-growing entertainment sectors in the country — and the numbers for 2026 confirm that this industry is only getting started.
In this guide, we break down the current US iGaming market size, revenue by state, growth projections, and the key forces driving expansion across the country. For context on how operators get authorized to participate in these markets, see our guide to US online casino licensing.
What Is the US iGaming Market Worth in 2026?
The US online gambling market is valued at $6.89 billion in 2026, according to projections from Mordor Intelligence — and is forecast to reach $14.79 billion by 2031, representing a compound annual growth rate (CAGR) of 16.51%.
That figure specifically covers regulated online casino gaming (iGaming). When combined with online sports betting, total gross revenue from US online gambling is estimated to range between $26.5 billion and $33.6 billion in 2026, depending on legislative developments in key states like New York. The American Gaming Association (AGA) tracks aggregate industry revenue across all 38 jurisdictions with legal commercial gambling.
Key Stat: iGaming (online casino) grew nearly 28% year-over-year in 2025, outpacing sports betting in both growth rate and EBITDA margins — making it the most attractive segment for operators and investors.
iGaming vs. Sports Betting: Two Sides of the Same Coin
It’s important to distinguish between the two main pillars of US online gambling:
- Sports Betting — Legal in 38+ states. Generates high volume but lower margins. Projected to hold ~49% market share in 2025.
- iGaming (Online Casino) — Legal in only 7 states. Generates higher margins (8 percentage points above sports betting in EBITDA). Growing at 28%+ annually.
Mobile devices now account for over 80% of all wagers placed in the US, confirming the mobile-first reality of the modern gambling market. This shift is documented in industry data tracked by the H2 Gambling Capital research firm.
Online Casino Revenue by State (2025–2026)
As of early 2026, seven states have fully operational regulated online casino markets: New Jersey, Pennsylvania, Michigan, Connecticut, Delaware, Rhode Island, and West Virginia. Maine has legalized iGaming but has not yet launched its market.
The Revenue Triad: NJ, PA, and Michigan
Three states dominate the landscape, each generating over $2.7 billion in iGaming gross gaming revenue (GGR) in 2024:
| State | 2025 iGaming Revenue | Tax Rate | Key Operators |
|---|---|---|---|
| Pennsylvania | $2.78 billion (+27.2% YoY) | 36% | DraftKings, FanDuel, BetMGM |
| New Jersey | $2.7B+ (est.) | 19.75% (now 22.25% effective) | Golden Nugget, BetMGM, Caesars |
| Michigan | $278M/month (Oct 2025) | Up to 28% | DraftKings, FanDuel, BetMGM |
| Connecticut | $105.1M tax revenue | ~18% | DraftKings, Mohegan Sun |
| West Virginia | $52.7M tax revenue | 15% | DraftKings, FanDuel, BetMGM |
| Delaware | $40.7M tax revenue | State Lottery model | State Lottery operators |
Note: Tax revenue figures are approximate based on available state filings. Revenue figures may differ from GGR depending on methodology. State data is sourced from the Pennsylvania Gaming Control Board, the Michigan Gaming Control Board, and the New Jersey Division of Gaming Enforcement.
New York: The Sleeping Giant
New York currently levies a 51% tax rate on sports betting gross revenue — the highest in the nation — generating $1.76 billion for the state in fiscal 2023–2024 from sports wagering alone. iGaming remains illegal in the state, but active legislation in 2026 is attempting to change that. If New York legalizes online casinos, analysts predict it would become the dominant US market almost immediately.
Who Controls the US Online Gambling Market?
The US iGaming and sports betting market is highly concentrated. Two operators — DraftKings and FanDuel — together control approximately 70% of total sports betting handle nationally. BetMGM holds a distant third position but has recently achieved EBITDA profitability. For a detailed comparison of the two market leaders, see our DraftKings vs FanDuel 2026 guide.
Other major players include:
- Caesars Interactive Entertainment
- Fanatics Betting & Gaming
- ESPN Bet (Penn Entertainment)
- Golden Nugget Online Gaming
- Flutter Entertainment (parent of FanDuel)
Market structure is fragmented at the state level due to state-by-state regulation, creating unique competitive dynamics in each jurisdiction. For state-specific availability, see our state-by-state legal guide.
What’s Driving iGaming Growth in the US?
Several converging forces are fueling the expansion of regulated online gambling in America:
1. State Legalization Wave
Each new state that legalizes iGaming creates a brand new regulated market from zero. With 7 states currently live and multiple others — including New York, Massachusetts, Virginia, and Illinois — actively considering legislation in 2026, the addressable market is expanding rapidly.
2. Mobile-First Consumer Behavior
Over 80% of all online gambling wagers are now placed via mobile devices. The ease of access through apps from operators like DraftKings and FanDuel has lowered the barrier to entry for millions of Americans.
3. Tax Revenue Incentive for States
Regulated iGaming generates significant tax income that funds education, healthcare, and infrastructure. Pennsylvania alone contributed nearly $3 billion in gaming tax revenue in 2025 — the highest in the nation. This incentive is a powerful driver for legislatures on the fence.
4. Technological Innovation
Live dealer platforms, AI-powered personalization, and seamless payment integrations have dramatically improved the user experience, driving longer session times and higher player retention.
5. North America as the Fastest-Growing Region
North America is the fastest-growing iGaming region globally, with a projected 15.40% CAGR through 2031 — outpacing even Asia-Pacific and Europe.
2026 Market Projections: What Comes Next?
Looking ahead, the US iGaming market is poised for continued acceleration:
- 2026: Market valued at $6.89 billion (online casino only)
- 2028–2029: Potential entry of New York, Massachusetts, and other large states
- 2031: Market projected at $14.79 billion (2.1x growth from 2026)
Analysts note that industry revenue could double by 2030 as more states come online, and as technology like VR gaming and esports betting create new revenue streams.
Editor’s Note: These projections assume continued state-level legalization at the current pace. A New York iGaming bill passing in 2026 or 2027 could significantly accelerate these numbers.
The Global Context: Where Does the US Fit?
While Europe currently commands 56.90% of global online gambling revenues, the US is rapidly closing the gap. The global online gambling market surpassed $121 billion in 2025 and is projected to reach $123.5 billion in 2026.
The US generated over $209 billion in total gambling revenue in 2025 across all formats — making it the world’s largest gambling market by revenue, ahead of India ($61B) and the UK ($27B).
Responsible Gaming: The Foundation of a Sustainable Market
Growth comes with responsibility. The American Gaming Association (AGA) reports that all 38 jurisdictions with commercial gambling require operators to offer self-exclusion programs, responsible gaming disclosures, and problem gambling resources. Learn more about the specific responsible gaming tools required of US licensed operators.
According to the National Council on Problem Gambling (NCPG), approximately 2.5 million US adults experienced severe gambling problems in 2024. The regulated market’s investment in player protection tools — deposit limits, time limits, self-exclusion, and AI-driven intervention systems — is central to maintaining public trust and long-term sustainability.
If you or someone you know needs help, the National Problem Gambling Helpline is available 24/7 at 1-800-GAMBLER or via ncpgambling.org.
Frequently Asked Questions
What is the US iGaming market worth in 2026?
The US iGaming (online casino) market is valued at $6.89 billion in 2026, with combined online gambling (iGaming + sports betting) reaching $26.5–$33.6 billion depending on legislative developments.
Which states have legal online casinos?
Seven states have fully operational regulated online casino markets in 2026: New Jersey, Pennsylvania, Michigan, Connecticut, Delaware, Rhode Island, and West Virginia. Maine has passed legislation but not yet launched.
Why is iGaming growing faster than sports betting?
iGaming has higher EBITDA margins (8 percentage points above sports betting), longer session times, and stronger player retention. It also benefits from new state legalizations creating fresh markets from zero.
What is the largest US iGaming market?
Pennsylvania leads with $2.78 billion in 2025 iGaming revenue (27.2% YoY growth), followed closely by New Jersey and Michigan. All three exceed $2.7 billion in annual GGR.
Will New York legalize iGaming?
Active legislation in the 2026 session is attempting to legalize iGaming in New York. If passed, analysts predict NY would become the dominant US iGaming market almost immediately given its population and existing sports betting infrastructure.
Key Takeaways
- The US iGaming market is valued at $6.89 billion in 2026 and growing at 16.51% CAGR
- Pennsylvania, New Jersey, and Michigan are the three dominant markets
- DraftKings and FanDuel control ~70% of sports betting handle nationally
- New York remains the biggest potential market not yet live for iGaming
- Mobile accounts for 80%+ of all wagers placed in the US
- The market is projected to reach $14.79 billion by 2031
⚠️ Legal Disclaimer & Editorial Notice
Not Legal Advice. This article is published for informational and educational purposes only. Nothing on this page constitutes legal advice, financial advice, or investment guidance of any kind. No attorney-client relationship is created by reading this content. Always consult licensed professionals before making decisions based on information found here.
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Responsible Gaming. Must be 21+ to participate in real-money gambling. Online gambling involves financial risk; outcomes cannot be guaranteed. If you or someone you know has a gambling problem, free and confidential help is available 24/7 — call or text 1-800-GAMBLER (1-800-426-2537) or visit ncpgambling.org.