The Growth of Online Gaming Companies in the US

The online gaming sector in the United States is entering a dynamic new phase, with digital gambling platforms driving the bulk of industry growth. A recent report from Eilers & Krejcik Gaming estimates total US gambling spend reached $172 billion in 2024, a 3.3% increase over the previous year. While traditional casino and lottery venues still command the largest share of the market, it's the online verticals that are capturing attention and dollars.

Online sports betting, internet-based casino and poker platforms, and digital lottery services each posted double-digit growth year-over-year. Mobile sports betting led the charge with a 34% increase, driven by market expansions in states such as North Carolina and Vermont. Meanwhile, online casino and poker revenue increased by 29%, and iLottery followed closely with a 26% rise. These gains sharply contrast with declines in brick-and-mortar sports betting and retail lottery, which fell by 24% and 5%, respectively.

This divergence underscores a long-term shift in consumer behaviour. With mobile apps and digital platforms offering convenience and variety, many consumers are forgoing physical venues in favour of online alternatives. And that preference is not just anecdotal, it’s showing up in revenue. For example, every Pennsylvania online casino site has seen record numbers, as internet casino gaming becomes increasingly mainstream. Pennsylvania alone recorded a 31.3% year-over-year spike in online casino gross revenue to over $524 million in the first two months of 2025.

Other major players in the digital casino space, including Michigan and New Jersey, also reported double-digit revenue increases during the same period. The early 2025 momentum suggests that online gaming isn’t just a temporary trend; it represents a structural transformation of the gambling landscape.

However, despite the surge in digital activity, retail casinos and lotteries continue to dominate overall gross gaming revenue (GGR), accounting for 85% of the total. This is largely due to the volume and consistency of in-person play, especially in markets where online options are still limited or emerging. That said, the compound annual growth rate over the past five years paints a clearer picture of where the market is heading. Online sports betting leads with a 96% compound annual growth rate (CAGR), followed by online casino and poker at 74% and iLottery at 45%.

For online gaming companies, this presents both opportunity and challenge. The potential for revenue growth is immense, particularly as more states consider legislation to legalise or expand digital gambling. However, with growth comes increased competition and greater regulatory scrutiny. Companies will need to invest in technology, compliance infrastructure, and responsible gaming initiatives to maintain customer trust and stay ahead in a rapidly evolving market.

The bottom line? Digital is where the momentum lies. As online platforms continue to capture market share from traditional gambling channels, the US gaming landscape is being rewritten. For companies positioned to capitalise on this shift, the next few years could prove transformational.