The United States online casino market has only been in existence since 2013 when the first licensed and regulated websites popped up in Nevada, which was then followed by Delaware and New Jersey. Market researchers are claiming that by looking at external sources of success it will give a good indication of what could happen within the US. This is why they are comparing its growth to Europe’s current online gambling market.
Europe versus United States Online Markets
The European gambling market is estimated to be around $87 billion a year market, with online gambling taking in about $15 billion. This makes Europe the most profitable and largest real-money online casino market in the world. The global online market has grown to roughly $37 billion a year, and this number keeps on rising. Two of the largest countries in the world are still on the fence about legalizing this form of gambling, India, and Russia. If those two joined the group of 85 other countries that already license and regulate, the market boom would be incredible.
As for the United States online casino market, it is still very young, as its first real-money online casino opened in 2013, where they first offered poker. It is years behind what Europe has accomplished, seeing that only three states so far have legalized and taken advantage of online gambling. According to the RubinBrown accounting firm, New Jersey holds more than 92% of the I-gaming market. In 2015, the US online gaming market brought in $160.7 million, 20% more than in 2014, broken down:
- New Jersey: $148.8 million
- Nevada: $10 million
- Delaware: $1.81 million
This rapid growth of only three states shows what was predicted by Technavio and Morgan Stanley, where the expected growth of the online casino market will reach $5 billion by 2020.
What Needs to Happen in the Next Few Years
With these promising numbers and revenues being posted, the next few years will be crucial when it comes to growth in the United States. One of the leading hopes is that California, Pennsylvania, and New York join the boom and legalize online casinos. These three states would account for a vast majority of potential players, holding the highest population of gamblers. One reason why the DFS sites are so interested in making things work in these states. As more states get on board with the idea of licensing and regulating online casinos, the nation will be closer to what Europe has accomplished.