In its previous years, iGaming has proven to grow at a steady, rapid pace. According to a report compiled by the American Gaming Association, various gaming sectors have been on a vertical rise. Especially in 2021.
Claiming that iGaming is the most profitable vertical, the report revealed that iGaming is doubtlessly the swiftest growing form of gambling. At the moment of writing this article, the only states that have legalised online gambling are Pennsylvania, Delaware, Michigan, New Jersey, Connecticut and West Virginia. Regardless of the fact that only six states have online casinos operating legally, the revenue produced from those states reached 86% of what was earned from sports betting.
To bring that close to home, the annual gross gaming revenue from iGaming in the USA is $3.7 billion proving that real money online casinos are popular. At the same time, sportsbooks earn around $4.33 billion. New markets are being reached in sports betting with more governments seeking to legalise the vertical growth.
Outside of DC, 30 states legalised online sports betting on some level or other by the end of December, 31. With all that said, however, sports betting’s fast growth does not compare to the rise of iGaming markets.
A number of people believe that it’s due to people spending more time at home in recent times that online figures grew. With most casinos having to either shut down or incorporate stern rules. Even after Covid measures are lifted, online gambling continues to grow.
How iGaming Tax May Boost Economies
There are other added benefits to iGaming. Where online gambling is legal, states often impose tall tax rates. 9.75% of revenue as tax is a requisite for retail New Jersey sportsbooks, for instance. For mobile sports betting and iGaming, the requirement is 14.25% and 15% of their income.
Pennsylvania charges even higher rates. Here, online slots make up a massive 54% of their revenue. All this lead to the fact that online casinos have great potential to contribute to their economies. 2021 marked a record year for the entire gaming industry, even though iGaming numbers rose exponentially. The gaming industry as a whole made $53 billion in revenue.
“Although 2021 was a tumultuous year, I’m confident it set a new baseline for gaming in the long term as we provide consumers with cutting-edge entertainment and anticipate the full recovery of travel, events, and entertainment.” – Bill Miller, CEO, AGA
Is the iGaming Industry Rise In the USA Only the beginning?
Internationally and in the USA, the iGaming industry has been an inexorable force in recent times. The casino industry in America was growing in revenue compared to the North American sports and movie industries put together, even before online gambling started trending. The market may double by 2027 from its current value of $173 billion, which is expected to rise to $200 billion by the end of 2023.
The physical structures that make traditional casinos will always be part of the American gambling culture. Regardless of that fact, online casinos are increasingly more popular. Most likely due to the convenience offered by mobile devices.
How The iGaming Market Has Evolved
From gambling with card games to online casinos, the industry has existed for time immemorial. Games such as Poker, Roulette, Blackjack and slots, were only played in brick-and-mortar casinos for many decades. With the advent of technology, more people are gambling online more and more.
As it stands, the value of iGaming is yet to reach that of its counterpart. However, it is estimated that in 2023, the value will increase and exceed $90 billion. A report covered by Statista shows that in 2022, the iGaming market value reached $59 billion. Within a year, the growth is predicted to double, in keeping with the rapid rise trend seen this far and by 2028 will reach a staggering $139 billion.
The importance of sports wagering becoming legal
The noteworthy moment towards iGaming progress occurred when the state of New Jersey won the case against PASPA (The Professional and Amateur Sports Protection Act). The win meant that NJ and other states across the country were allowed to legally host sports betting. With that, came the opportunity for states to offer online gambling to their patriots. This meant that illegal and offshore bookmakers were no longer necessary.