U.S. Gambling Spend Increases by 3.3% in 2024

A new report by Eilers & Krejcik Gaming reveals a 3.3% year-over-year rise in total gambling spend in the United States, reaching $172 billion (£131 billion/€155 billion) in 2024. The surge in overall spending is attributed primarily to the rapid growth of digital gambling verticals, particularly mobile sports betting, iCasino, and iLottery, which collectively experienced double-digit percentage increases.

While commercial and tribal casinos remained the dominant sources of revenue in regulated markets, with a combined 56% of the total spend, the fastest-growing areas were found in the digital space. Mobile sports betting, online casino games, poker, and iLottery collectively accounted for much of the growth, with online sports betting leading the charge with a notable 34% growth compared to the previous year.

The growing adoption of digital gambling platforms reflects broader trends in consumer behavior, especially in regions where new markets for online betting and gaming have opened up. In particular, the introduction of online sports betting in North Carolina and Vermont during 2024 significantly contributed to the overall growth of the digital sector.

Digital Verticals Show Steep Growth Trajectories

Eilers & Krejcik’s data highlights that mobile sports betting, online casinos, poker, and iLottery were the three verticals with the steepest growth trajectories. Online casino and poker play saw an impressive 29% increase year-over-year, further solidifying the expanding role of digital casinos in the U.S. gambling landscape. iLottery, which remains a small but growing segment, posted a 26% increase, although it still represented just 1% of total gambling spend.

Despite these gains, retail casinos—both commercial and tribal—continue to dominate the overall market. These venues accounted for 56% of total gambling spend, with in-person wagering remaining a major component of the U.S. gambling ecosystem. However, when considering Gross Gaming Revenue (GGR), which tracks the money retained by operators after winnings are paid out, retail casinos outpaced the total spend in this category, capturing 61% of GGR compared to 56% of total spend.

The persistent dominance of retail play highlights the ongoing significance of physical casinos in the industry, despite the rapid expansion of online gambling. In 2024, in-person wagering still made up 85% of all gambling revenue, while digital gambling sources, including online casinos and sports betting, accounted for just 15%.

Lottery and Retail Play: Still Key Players

While digital verticals are on the rise, traditional forms of gambling, such as retail lottery play and in-person casino betting, continue to drive a significant portion of overall revenue. Retail lottery play, which includes both commercial and tribal operations, generated 22% of operator winnings, slightly exceeding the 21% of total spend attributed to both online and retail lottery combined.

In contrast, the relatively modest contribution from iLottery—a sector that remains underdeveloped in comparison to its counterparts—reveals a significant gap between the growth of digital and traditional gambling models. As digital channels for gambling become more integrated into mainstream consumer activities, the pace of adoption for services like iLottery may continue to accelerate, but it will likely take time before these platforms match the scale and scope of their physical counterparts.

Mobile sports betting, online casinos, and iLottery led the charge in 2024, driving the most significant growth in an otherwise stable U.S. gambling market.

Outlook for the Future

The data suggests that while traditional gambling markets remain strong, the continued growth of digital gambling is expected to reshape the landscape. With more states legalizing mobile sports betting and online casinos, and advancements in technology enhancing the user experience, digital gambling verticals will likely continue to outpace traditional models in terms of growth rates. However, the disparity in revenue generation between retail and online play underscores the enduring appeal of in-person gambling experiences, especially for high-stakes casino games and retail lottery operations.

The report also points to the fact that social casinos, online sweepstakes casinos, and skill-based games were not included in the figures, meaning the actual size of the digital gambling market could be even larger than reported. As the regulatory environment evolves, it will be crucial to monitor how these segments, alongside emerging technologies like virtual and augmented reality gaming, influence future trends in the U.S. gambling industry.

In conclusion, while the U.S. gambling industry continues to experience overall growth, the future trajectory seems poised to be increasingly dominated by digital platforms, with mobile sports betting, iCasino, and iLottery continuing to show strong performance.