US iGaming Market Growth Forecast for 2025

The U.S. iGaming market is experiencing unprecedented expansion, with record-setting revenues and increasing player engagement. Industry experts predict that 2025 will continue this upward trajectory, driven by technological innovation, strategic marketing, and evolving player preferences.

US Online Casino Revenue Hits All-Time High

Eilers & Krejcik Gaming Consulting and Market Research has released new data on the state of iGaming in the US, revealing record-breaking online casino revenues for December. The data shows that revenue across the seven legal iGaming states soared to an all-time high of $845 million. This marks the sixth consecutive month of growth and the third time in recent months that iGaming revenue has set a new record.

New Jersey's iGaming market experienced a 24% surge in 2024, generating more than $2.39 billion. Pennsylvania followed closely with a 25% increase, bringing its total to over $2.18 billion. Michigan saw a 23% rise, reaching $2.4 billion in online casino revenue. Even smaller states like West Virginia posted impressive gains, with a 21% increase and revenues exceeding $200 million.

Land-Based Casinos See Mixed Results

While iGaming continues to grow, traditional casinos have faced mixed outcomes. New Jersey’s land-based casino revenue declined by 1%, while Michigan saw slight growth at 1%. Pennsylvania experienced marginal declines, with retail slot revenue dropping by less than 1% and table games down 3.3%.

In states without iGaming, results varied. Nevada’s Gross Gaming Revenue (GGR) grew by less than 1%, while Illinois, benefiting from new casino openings, saw an 11% increase. Missouri, which did not add any new properties, experienced a 2% decline.

Eilers & Krejcik's report suggests that iGaming is not necessarily cannibalizing land-based casino revenue. Instead, the continued rise of online gaming is attributed to better marketing strategies and game innovation.

The Impact of Sports Betting on iGaming Growth

A key factor in iGaming’s success has been cross-channel marketing between online sports betting and online casinos. Many sportsbooks leverage free play promotions to attract younger players and transition them into online casino gaming, where players typically wager more frequently.

December data suggests that many sports bettors who had a successful month reinvested their winnings into online casino play. This trend aligns with operators' strategies, as casino gaming generates significantly higher betting volumes than sports betting.

A notable effect of this cross-channel movement has been the rise of table game play. Online table games saw a nearly 50% increase in December, jumping from 9.8% of online casino revenue in November to over 13% in December.

BetMGM CEO Adam Greenblatt addressed this trend during the company’s earnings call, revealing that over 70% of BetMGM sports bettors also play online casino games. He also highlighted an 11.5% increase in cross-selling between online sports betting and iGaming on the company’s platform.

Innovation Driving iGaming Expansion

Eilers & Krejcik also noted that ongoing technological advancements are enriching the iGaming experience. AI-driven game recommendations are already in use, and the future may see AI personalizing gameplay itself.

Live dealer games, which stream real-time action from casino-like studios, now account for over 50% of table game play in most jurisdictions. Their popularity continues to grow, with innovative variations of blackjack, roulette, and baccarat attracting more players.

Slot games are also evolving rapidly. Interactive bonus rounds, massive progressive jackpots, and cutting-edge visuals have made online slots more appealing than their land-based counterparts. New slot titles debut online first, as land-based versions require more extensive testing and higher costs.

Women's Growing Presence

Another major shift noted in the report is the growing presence of female players in online gaming. While online gambling has traditionally been dominated by young male players, operators have made concerted efforts to attract women, particularly through slot game innovation and social features.

FanDuel, which has targeted female players over the past several years, signed up 1.5 million women in the past year. While women still represent only about 25% of the platform's users, their participation is steadily increasing.

Social features, such as multiplayer games, live chat, leaderboards, and tournaments, have played a significant role in drawing female players. Many operators now integrate social media elements directly into the casino experience, fostering a more engaging and interactive environment.

A Promising Outlook for 2025

Eilers & Krejcik forecasts continued iGaming growth into 2025, with new record-setting revenues likely on the horizon. Whether players engage via AI-enhanced gaming, traditional land-based casinos, or mobile platforms, one thing remains clear: iGaming’s rapid expansion shows no signs of slowing down.