North America Online Gambling Market Outlook to 2030

North America Online Gambling Market Overview

• The North America online gambling market is valued at USD 31 billion based on a five-year historical analysis, driven primarily by the increasing penetration of smartphones and internet access across the region. This market is also experiencing growth due to the widespread legalization of online betting and casino platforms in key states across the United States. The ease of access to online gambling platforms and the convenience of playing from home have spurred this rapid growth.
• In terms of regional dominance, the United States holds the leading position in the North American online gambling market, followed by Canada and Mexico. The dominance of the U.S. is attributed to its large population, high disposable incomes, and the progressive legalization of online betting across multiple states. Key cities such as New Jersey and Nevada have become hubs for online gambling due to their favorable regulatory environments and long-standing gambling industries.
• In the U.S., state-level legalization initiatives continue to shape the online gambling landscape. As of 2023, 34 states have legalized some form of online gambling, with several more considering similar measures. This patchwork of regulations allows states to independently set tax rates, licensing requirements, and operational standards for online gambling operators. States like New York and California are currently debating legislation that would further expand the online gambling market, potentially adding millions of new users to the system.

North America Online Gambling Market Segmentation

By Type of Gambling: The market is segmented by type of gambling into sports betting, casino games (slots, poker, etc.), lottery, and esports betting. Recently, sports betting has dominated the market under this segmentation, mainly due to the growing interest in major leagues such as the NFL, NBA, and MLB. The widespread legalization of sports betting across multiple U.S. states has fueled this trend, making it easier for consumers to place bets online.

By Device Type: The market is also segmented by device type into desktop and mobile (smartphones, tablets). The mobile segment is leading in market share due to the increasing penetration of smartphones across North America. Mobile devices offer users the convenience of gambling from anywhere at any time, which has been a significant driver of growth. The rise of mobile applications designed for both Android and iOS platforms has also contributed to the dominance of this segment, making it the preferred choice for a majority of players.

North America Online Gambling Market Competitive Landscape

The North America online gambling market is dominated by several key players who maintain a strong foothold in the market. These companies have developed significant brand equity and are continuously expanding their portfolios to offer enhanced experiences to their users. The major players in the market include DraftKings Inc., MGM Resorts International (BetMGM), and Flutter Entertainment (FanDuel).

North America Online Gambling Industry Analysis

Growth Drivers

• Increased Internet Penetration (Market Specific): As of 2024, over 92% of the population in North America has internet access, with the United States and Canada among the global leaders in internet penetration. High-speed broadband has become more accessible, which has been pivotal in boosting online gambling. This infrastructure growth is closely linked to rising demand for online platforms, particularly gambling services. With an estimated 320 million internet users in the U.S. alone, there has been a marked increase in users participating in online betting activities.
• Expansion of Mobile Gambling (Market Specific): The widespread use of smartphones has fueled mobile gambling growth, with over 280 million smartphone users in North America as of 2023. Mobile gambling apps account for a significant portion of online gambling revenue in the region, allowing users to participate from any location. The convenience of mobile platforms has contributed to a spike in real-time betting, particularly for sports and esports. As mobile infrastructure improves with the deployment of 5G networks, the trend is expected to sustain high participation rates.
• Liberalization of Gambling Laws (Market Specific): The regulatory environment for online gambling in North America has seen liberalization, particularly in the United States, where states such as New Jersey, Pennsylvania, and Michigan have legalized various forms of online betting since 2018. Over 30 U.S. states now permit sports betting, contributing to significant revenue growth in the sector. Canadas passing of Bill C-218 in 2021 further opened the market, enabling single-event sports betting, a key driver of the Canadian gambling market.

Market Challenges

• Regulatory Compliance (Market Specific): The fragmented regulatory landscape across North America presents a significant challenge for online gambling operators. Different states in the U.S. enforce their own laws, creating complex compliance requirements for multi-state operators. Regulatory oversight is further complicated by cross-border considerations, with Canadian provinces having distinct regulations for online gambling. Operators are required to navigate an array of licensing rules, taxation policies, and operational restrictions, all of which increase compliance costs.
• Cybersecurity Threats (Market Specific): Cybersecurity remains a significant concern in the North American online gambling market, as digital platforms increasingly become targets for cyberattacks. According to the FBI, financial fraud involving digital transactions in the U.S. surpassed $10 billion in 2023, with online gambling platforms being highly vulnerable due to the volume of money exchanged. Security breaches can erode customer trust, and operators must invest heavily in encryption technologies, identity verification protocols, and fraud detection systems to safeguard transactions.

North America Online Gambling Market Future Outlook

Over the next five years, the North America online gambling market is expected to show significant growth, driven by continuous state-level legalization, advancements in mobile gambling applications, and increasing consumer interest in esports betting. The growing adoption of secure payment methods, such as cryptocurrency and blockchain technology, is also likely to reshape the landscape of online gambling in the region.

Market Opportunities

• Integration of Blockchain Technology (Market Specific): Blockchain technology is gaining traction in the North American online gambling market, offering benefits such as enhanced transparency and security. By utilizing decentralized ledgers, gambling operators can provide players with verifiable transaction records, increasing trust in the fairness of games. In 2023, several U.S. and Canadian operators began implementing blockchain solutions for payment processing and game integrity verification. This technology also allows for the creation of smart contracts, which automatically execute betting outcomes, eliminating the need for third-party verification.
• Expansion of Cryptocurrency Betting (Market Specific): Cryptocurrency betting is an emerging opportunity in North America, driven by the increasing adoption of digital currencies like Bitcoin and Ethereum. In 2023, an estimated 10% of online gambling transactions in the U.S. were conducted using cryptocurrencies, offering users faster and more anonymous transactions. Cryptocurrency betting platforms provide lower transaction fees compared to traditional banking methods, making them attractive to both operators and players.