top of page
Writer's pictureWilna van Wyk

SBA Finds Online Gambling Grows Total Market

Close-up picture of American National flag - The Star-Spangled Banner

The economic analysis released by the Sports Betting Alliance (SBA) shows that online gambling grows the total market

 

Online Gambling Grows Total Market

 

The Sports Betting Alliance study shows an increase of 1.9% at the physical

casinos in states where iGaming is legal after adding online casinos. Besides the findings at legal iGaming states West Virginia, Pennsylvania, New Jersey, Michigan, Delaware, and Connecticut, the Analysis Group conducted another survey with 2,389 prospective and current gamblers. 

Sport Betting Alliance (SBA) Logo

  • Total gaming revenue increased by 46% in 2023 once online casinos went live in US states. 

  • The lawmakers in Maryland could see an increase in revenue of $224 million once online casinos are legal. 

  • Projections predict growth from $2 billion in 2024 to $3.9 billion in 2029. 

  • Pennsylvania had the highest revenue growth of 58.9% between 2018 to 2023.

 

Online Casinos Increase Tax Revenue and Expand Brand Loyalty

 

Findings by the study also revealed that online casinos can increase gaming frequency and bring home tax revenue now lost to out-of-state and offshore platforms. Online casinos will expand the market because of brand loyalty and bring players from other sections, such as sportsbetting, to the online platform. 

 

The study also highlighted that players enjoy a totally different experience at land-based casinos than at online casinos, which will attract a wider audience. Most players who engage in online gaming said it didn’t reduce their gaming activity at land-based casinos in terms of spending or frequency. 

 

Economic Analysis Showing Rise in Revenue across the Next Five Years by Adding Online Gambling

 

(*Projections in iGaming Revenue in $ Millions)

State

2028

2029

2027

2025

2026

Total

2025 - 2029

Annual Average

2025 – 2029

New York

$4,151

$4,460

$3,733

$2,529

$3,189

$18,063

$3,513

Illinois

$2,130

$2,281

$1,921

$1,309

$1,646

$9,288

$1,858

Louisiana

$892

$957

$803

$545

$687

$3,884

$777

Maryland

$1,270

$1,368

$1,140

$769

$972

$5,520

$1,104

Virginia

$1,234

$1,330

$1,106

$745

$942

$5,356

$1,071

TOTAL

$9,677

$10,396

$8,703

$5,898

$7,437

$42,111

$8,422

 

The sentiment echoed by survey respondents includes a 41-year-old male from Michigan, writing that it is nice to play online via a licensed casino app. However, it remains nice to play at a real casino. A 29-year-old New Yorker added that land-based casinos offer other activities and plenty of stuff to enjoy.


The Analysis Group learned from the survey that 1,188 respondents were active in online sports betting, and 1,118 enjoyed online gaming in the past 12 months. The result shows that 64% crossed over to engage in other forms of online gambling.

 

Projections Show Revenue to Double Over Five Years

 

BetMGM, DraftKings, FanDuel, Caesars Entertainment, and Fanatics are part of the US operators offering online casinos and sports betting to national players. Penn Entertainment and BetRivers to regional players, showing that online casinos present firms with an opportunity to cross-promote sports betting and online casino brands.

 

In looking at five states legalising online gambling, which includes Virginia, New York, Massachusetts, Louisiana, and Illinois, the Analysis Group projections predict revenue growth could increase from $5.9 billion to $10.4 billion (2025 to 2029). The projections across the five states were similar, in which 49% said they would continue visiting land-based casinos.

 

Participant Thoughts Regarding Online Casino States

 

  • 52,2% in legal iGaming states reported spending the same as before online casinos.

  • 26.1% spend more, while 16.9% spend less.

  • 49.4% would still visit land-based casinos and stay for a period.

  • 28.6% are likely to spend more time at land-based casinos.

  • 16.5% are likely to spend less time at land-based casinos.

 

Using a unique model for the analysis to project the influence on gambling revenue based on online sports betting and online casinos. It provides a detailed view of states making online gambling legal.


The study also summarises previous studies from 2008 to 2024 via data from eight sources. It reinforces the experimental evidence relating to market expansion on the overall gambling market and the effects of iGaming complementing land-based casinos.

13 views0 comments

Related Posts

See All

Comments


bottom of page