U.S. Online Casino Industry Surges in 2024 Despite Limitations

The U.S. online casino industry defied expectations in 2024, achieving an impressive 28.7% growth in gross gaming revenue (GGR) despite the absence of significant new market launches. Initial projections suggested a slowdown in growth to 19.3% for the year, but the sector instead saw an acceleration, generating $8.4 billion in total revenue—$600 million more than forecasted.

This remarkable growth occurred without major geographical expansion. Rhode Island, the only state to launch online casino operations in 2024, contributed less than $25 million to the national total, a negligible 0.03%. Similarly, new operator launches like bet365 in Pennsylvania and Jackpocket Casino added minimal revenue. Instead, the acceleration appears to reflect broader economic factors and operational improvements across the industry.

Developments

The U.S. Department of Commerce reported strong consumer spending in 2024, buoyed by higher wages and increased disposable income. This favorable economic climate likely contributed to the online casino industry’s unexpected surge. Most states with established iGaming markets saw a boost in growth rates, reversing the expected deceleration typically seen in maturing markets.

One standout was Delaware, where a change in its monopoly operator drove revenue growth of 345%, up from just 3.4% the previous year. The state’s revenue jumped immediately after BetRivers replaced 888 (Evoke), reaching a record $7.7 million in December. Similarly, West Virginia experienced explosive growth, with its annual growth rate rising from 39.8% in 2023 to 56.8% in 2024, thanks to improved market conditions and consumer adoption. Even the more mature markets, such as New Jersey and Pennsylvania, experienced notable acceleration. New Jersey, the country’s oldest online casino market, saw its growth rate climb from 15.7% in 2023 to 23.9% in 2024. Pennsylvania similarly grew from 26.3% to 28.6%, bolstered by increased competition among operators and robust consumer engagement.

National operator revenue data remains limited due to shared reporting licenses in many states, but Michigan offers a glimpse into the competitive dynamics shaping the industry. Michigan’s online casino market allows one brand per license, enabling a clear view of operator performance.

The biggest winners in 2024 were mid-tier brands that revamped their strategies. Caesars, for example, more than doubled its growth rate from 33% to 69.4%, largely by prioritizing its standalone Caesars Palace Online Casino. Similarly, PointsBet’s transformation into Fanatics Casino drove a staggering 175.6% growth, up from 77% in 2023. PENN’s rebranding of Barstool Casino to Hollywood Casino also paid dividends, with its growth rate jumping 42.8 percentage points.

On the other hand, some major players struggled to maintain momentum. DraftKings, despite its strong start in 2023, saw its growth rate decline from 46.7% to 24.8%. PokerStars also experienced a significant slowdown, with its growth rate falling into negative territory at -4.5%. Meanwhile, BetMGM’s renewed focus on competitiveness allowed it to regain some ground, increasing its growth rate from -0.4% to 9.2%.

The acceleration in 2024 highlights the importance of adaptability and strategic investment in a maturing market. Operators that embraced standalone brands or underwent significant rebranding efforts reaped substantial rewards. Additionally, the industry’s resilience in the absence of major market expansions suggests that broader economic factors, such as increased consumer spending, can amplify growth in well-established markets.

The success of Delaware and West Virginia demonstrates that even small and mid-sized markets can achieve substantial growth through operational improvements. Conversely, Connecticut, a relatively young market, saw its growth slow from 44.7% to 32.3%, underscoring that maturity eventually tempers early explosive gains.

The Future & 2025

The U.S. online casino industry’s unexpected acceleration in 2024 defied projections, demonstrating its capacity for growth even in the absence of significant market expansion. Driven by a strong economy, operational improvements, and strategic shifts among operators, the sector exceeded expectations, closing the year with $8.4 billion in revenue.

As the industry heads into 2025, the lessons from 2024 emphasize the importance of innovation, strategic adaptation, and responsiveness to economic conditions. While challenges remain, including potential regulatory hurdles and market saturation, the resilience and dynamism of the U.S. online casino industry suggest that its growth trajectory is far from over.