The US online gambling market is booming. As a matter of fact, its gross revenue is predicted to hit $26.8 billion by late 2025. This is a big deal as it means that the $23.4 billion mark in 2024 will be surpassed, showing remarkable growth in the digital world. The market’s future looks even brighter with potential earnings of $41 billion by 2028.
Interestingly, New Jersey stands out with the highest yearly online gambling revenue. Michigan and Pennsylvania follow it. These three states have proven themselves as market leaders. Hopefully, the national market would change dramatically if California and New York joined the iGaming space. Let’s explore the top gambling states in the United States and how they are changing the gambling landscape.
New Jersey, Pennsylvania, and Michigan Drive iGaming Revenue
The Big Three states are leading America’s iGaming boom. They generate the highest online gambling revenue in the US, and their growth shows the sector’s great potential. New Jersey stands as the most established market with $2.39 billion in revenue for 2024. It is an impressive 24% growth from the previous year’s earnings.
The state’s online gambling also reached new heights in May 2025 with record revenue of $246.8 million.
Pennsylvania has also become a major player despite its steep tax structure. The state used its larger population to generate $2.18 billion in 2024. It was a 25.25% increase from 2023. Pennsylvania also hit $212.6 million in June 2025, jumping 32.3% from the previous year.
Michigan shows remarkable growth too. The state earned $2.20 billion from iGaming in 2024. Its recent performance has also been stellar, with gross receipts of $260.5 million and $251.47 million in March and May 2025, respectively.
California And New York Push For Legalization In 2025
Several regulatory changes sweep across the US. With that, California and New York stand out as targets for online gambling expansion in 2025. But each state faces its unique challenges and timelines. California’s path to legalization remains tricky after two competing sports betting initiatives failed in 2022.
Tribal gaming entities backed Proposition 26, while major online gambling operators supported Proposition 27. Both failed at the ballot box. Unfortunately, the state can’t revisit sports betting legalization until 2026. Tribal gaming leaders have also made it clear they will decide when and how sports gambling comes to California.
New York has a different case. The Empire State already leads US sports betting with $58 billion in bets placed over three years. Now it wants to add online casino gaming to the mix. Senator Joseph Addabbo Jr. introduced bill S2614 in January 2025 to authorize and regulate iGaming. He believes it could yield at least $1.5 billion yearly tax revenue. Fortunately, you can check the best blackjack apps to explore what blackjack gameplay might look like once the market opens.
Player Behavior, Mobile Trends, And Demographics Shift The Landscape
Smartphones have changed gambling in the United States, and they represent about 80% of total betting value in 2025. The shift to mobile phones continues as many users today access gambling platforms through their phones. This makes smartphones the primary channel for digital betting nationwide.
Moreover, millennials, ages 25-40, drive the industry’s growth by generating the highest online gambling revenue. Young adult males between 21 and 29 also show strong participation, as well as females in the same age group. In addition, sports betting leads online gambling activities at 32%. Lottery purchases and slots share second place.
However, age groups show distinct priorities. Younger players aged 21-34 prefer sportsbooks, esports, and poker. But traditional casino games like slots and blackjack attract older players aged 55 and above. Not only that, but also bettors aged 21-24 tend to have multiple betting apps. These numbers highlight behavioral differences between age groups.
Technology, Payments, And Regulation Define The Future
New technology is changing how Americans gamble online. When it comes to millennials, they are comfortable running their entire life off their cell phones. And this is where gaming is going. Virtual reality, augmented reality, and AI-powered customized experiences are also changing how players bet in states where it is legal.
They create immersive environments and optimize operations. Machine learning algorithms also analyze player statistics to enable the offer of personalized experiences. Blockchain technology and cryptocurrencies have as well become popular. This is because they offer secure, transparent transactions with better privacy. Payment options have further grown significantly.
Platforms now support many options for deposits and withdrawals. Some include debit/credit cards, e-wallets like PayPal and Neteller, bank transfers, and prepaid payment processing solutions. Regulation is another leading topic in industry discussions. Operators are pushing for the legislation of online casino gaming in more states to bridge the gap between sports betting and iGaming.
The US Online Gambling Market is Soaring
The American online gambling market stands at a turning point. States with regulations enjoy tax benefits. While others face pressure to capture revenue that goes to offshore operators or neighboring states. The market’s growth seems inevitable. But the real question is how fast regulations will keep up with consumer needs and what technology can deliver.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.