State of the iGaming Industry

Chris Jonat

Content Manager

If you’re looking for a snapshot of the iGaming industry in the USA for Q1 2025, you’ve come to the right place. Read our insights to discover how online and mobile gaming is becoming more prominent than ever, and how experts are leading the charge in new technologies to engage with a new generation of players.

Overview of the top developments this quarter

According to the American Gaming Association (AGA), total revenue from online sports betting and iGaming hit $6.19 billion in Q1 of 2025, covering a record share of total gambling revenue at 32.8%. Online gambling has never been more important in the US.Q1 has traditionally been an exciting month for iGaming in the US. State legislatures are open, allowing lawmakers to either pass new laws enabling gambling or amend existing regulations. Typically, there is a flurry of legislative activity with lawmakers submitting bills and debating proposed changes.However, Q1 2025 bucked this trend. Most states already allow sports betting, and there wasn’t much support for legislation change in states that don’t already have provisions that would allow the legalization of online casinos, which are only authorized to operate in seven US states. That could change in Q2, with a few bills, like SB 1963 in Illinois and HB 298 in Ohio, still under consideration, but there was no groundswell of gambling change in Q1 like expected.

Alexander Korsager, Chief Gaming Officer

On the key trends of Q1 2025

Most of the developments in Q1 related to new technology and ways to gamble, including the push to mobile devices and the rise of prediction platforms. Below are some of the key trends from the first three months of 2025.

Diversification beyond traditional betting with predictions platforms

In 2018, the US Supreme Court struck down the Professional and Amateur Sports Protection Act of 1992 (PASPA) to allow each US state to create its own sports betting legislation, ending Nevada’s effective monopoly on the market. Fast-forward nearly seven years, and nearly 40 states and Washington, D.C. have legalized online sports betting.As the sports betting market has consolidated, a few major operators are covering more and more sports betting activity. For example, estimates in January 2025 suggested FanDuel and DraftKings covered 80% of the US sports betting market. All the other operators are competing for a small slice of the pie.Q1 2025 has shown that betting platforms can diversify to reach even more players and cut into that market share. One method that rose in popularity in Q1 2025 is event contract predictions. These platforms, like Kalshi and Crypto.com, rose to prominence during the 2024 Presidential elections, offering players the opportunity to make profits by predicting the election’s outcome.Crypto.com launched its sports prediction markets in December 2024, while Kalshi introduced its own sports betting predictions in January 2025. While these markets started out limited, Kalshi now offers forecasts for football, baseball, soccer, motorsport, tennis, golf, hockey, and esports.

Availability of prediction platforms in the US"Prediction platforms are available in all 50 US states. They are not governed by the same regulations as sports betting operators, this is why an increasing number of sports betting brands are launching their own, as interest in sports betting skyrockets."

Increasing focus on mobile and online platforms

Our internal data shows that mobile gaming is increasingly becoming the norm for gamblers across the US. In Q4 2024, an average of 72.8% of online gambling was conducted on mobile devices compared to 27.2% on desktops. That increased to 74.1% on mobile and 25.9% on desktop for Q1 2025.While mobile gambling is leading the way, there is also a general shift towards online gambling over visiting land-based casinos. No state has demonstrated this better than New Jersey, where Atlantic City has long been the casino hub for the eastern US.New Jersey iGaming revenues overtook land-based casino revenues for the first time since the impacts of Covid-19 in 2020, a period in which several casinos closed. For the first three months of 2025, iGaming revenues in NJ exceeded land-based casino revenues, a clear sign that things are shifting online.

Growing interest in cryptocurrency integration

The results of the survey presented by TMX VettaFI Head of Research Todd Rosenbluth and Senior Investment Strategist Cinthia Murphy at the Exchange conference in Las Vegas showed that people are becoming more trusting of cryptocurrencies. Their stats show that 57% of US financial advisors intend to increase their investments in ETFs, and only 1% plan to decrease them.Gamblers share this embrace of new technology. The average search volume for “crypto casino” on Google in the US was 41 points in Q4 2024, but that rose to 50 points in Q1 2025.One site that demonstrates the growing links between gambling and cryptocurrency is Crypto.com. The platform launched sports predictions at the very end of December, so for Q1 2025, fans have been able to buy cryptocurrencies through its trading platform and use them to make sports predictions. These started with just Super Bowl predictions, but Crypto.com now provides soccer, hockey, and basketball prediction options as well.For now, that’s the closest players can get to using crypto to gamble, with no pending legislation allowing any US states to permit these payments. Lawmakers may need to change this stance to avoid pushing players to offshore platforms that provide crypto.

iGaming: The fastest growing online gambling segment

The American Gaming Association has released its Q1 report on gambling across the US, showing growth across traditional casinos, sports betting, and iGaming. However, iGaming growth outpaced both other segments significantly. Traditional land-based casino GGR grew by 1%, while iGaming GGR climbed by 27.3%. Meanwhile, sports betting GGR, including online and land-based, increased by 13.6% compared to Q1 2024. That’s pretty impressive considering only seven states allow iGaming in the US. It’s worth noting that Rhode Island launched online casinos in March 2024, so Q1 2025 includes a full three months of revenue from the state. Meanwhile, Q1 2024 only consists of a few weeks of Rhode Island revenue from the back end of March.Returning to the national picture, comparing the combined online performance to the combined land-based performance, land-based gaming grew by 1.4% compared to Q1 2024, while online grew by 15.3%.Additionally, the data shows that 32.8% of revenue was generated by online platforms, up from 29.3%. The AGA’s analysis confirms that online gambling is becoming more important (as mentioned above) and that iGaming is a key revenue driver despite being a far smaller market. That pattern was evident in individual operators as well as from a national perspective. Flutter Entertainment, the operator behind FanDuel, increased its US revenue from $1.61 billion to $1.66 billion in Q1 2025 compared to Q4 2024. Meanwhile, BetMGM generated $443 million in iGaming net revenue in Q1 2025. CEO Adam Greenblatt said, “The momentum we built in the second half of 2024 continued into the first quarter as we implement our powerful iGaming strategy.”

Alexander Korsager, Chief Gaming Officer

On the massive growth in the industry by stating:

"iGaming has come a long way from the basic two-dimensional games that once defined the industry. The sector is now growing at an exponential rate—we've seen that firsthand just in the past quarter. With ongoing advancements in game quality, variety, and overall innovation, we fully expect this upward trend to continue to skyrocket.”

Major event betting continues strong performance

If you look at sports betting in Q1 2025, it’s impossible not to talk about the Super Bowl and March Madness, two of the most significant sporting events of the year in the US. Data from the American Gaming Association (AGA) demonstrates that these are two of the most considerable betting events as well.The AGA estimated that $1.39 billion would be spent on the Super Bowl and $3.1 billion on March Madness, an increase from $2.7 billion the year prior. H2 Gambling Capital also noticed a rise in Super Bowl Betting, with the combined handle 7.8% ahead of its prediction of a $1.6 billion spend on the Super Bowl. However, this conclusion is based on a small sample size of New Jersey and Nevada. Consistently increasing interest in these events and the lack of significant sporting events with the same attraction over Q2 2025, may mean a major drop in sports betting numbers, which is an additional factor to consider as we move forward.

A pushback on sweepstakes casinos

During 2024, the popularity of online sweepstakes casinos increased significantly. These platforms allowed players to register and play casino games for free using online virtual currency in states where online casinos aren’t legal. Players could also buy more virtual currency if they ran out and redeem certain coins for real-life prizes like gift cards and cash.Q1 2025 saw significant pushback on this new type of gambling from legislators and gaming regulators across the US. At the start of April, the Pennsylvania Gaming Control Board sent 18 cease-and-desist letters to sweepstakes operators, while the Maryland Lottery and Gaming Control Agency sent a cease-and-desist letter to Virtual Gaming Worlds, the company behind Chumba Casino and Luckyland Slots.

Alexander Korsager, Chief Gaming Officer

Tracking legislation through Q2 2025

"Several US states, such as Maryland (SB 860), New York (A6745A), and Mississippi (SB 2510), have introduced legislation to ban online sweepstakes casino games. It will be interesting to track in Q2 2025 how many of these measures are successful and whether this impacts the regulated iGaming market."

Emerging trends in the market

Our experts found some interesting trends in our exclusive, internal data, which showed Q1 2025 insights you can’t find anywhere else.For starters, it seems blackjack gripped the attention of US gamblers during the period. Searches for “free blackjack” increased 3.3% quarter-on-quarter, while interest in blackjack guides also increased by 4.6%. Meanwhile, interest in “free roulette” dropped 4.7%, “free slots” by 5.3%, and roulette guides by 5.7%. Blackjack’s gain was clearly at the expense of other online casino games.Another interesting trend we picked up earlier in this article was the lack of interest in traditional banking methods. Searches for major credit cards fell by 6% quarter-on-quarter, while interest in other banking methods rose by 4.4%. This further reinforces the interest in cryptocurrency and banking alternatives.

State-by-state player traffic

The jurisdiction with the most significant increase in quarter-on-quarter traffic was Delaware, with 18.8% growth. And it wasn’t close. The state with the next highest quarter-on-quarter traffic rise was Rhode Island at 4.1%. It’s worth noting these are only two of a handful of US states where a monopoly runs online gambling: Rush Street Interactive in Delaware and Bally’s Corporation in Rhode Island.Delaware switched its technology provider for online sports betting and casino gambling to Rush Street Interactive in August 2023, and its sports betting and casino revenues have significantly increased since. The state benefited from this deal in Q1 2025, with Inspired signing an agreement with Rush Street Interactive to launch games in Delaware in March 2025. These new casino games likely caused the increased traffic in Q1 2025.That August 2023 deal is still powering growth, and could be behind Delaware’s significant increase in traffic in Q1 2025 compared to Q4 2024. In March 2025, Delaware gamblers got access to new casino games through a deal between Rush Street Interactive and Inspired. That kind of expansion is why more people are interested in Delaware gambling in Q1 2025.A geographical quirk of the Q1 2025 traffic figures is that three of the top four states included jurisdictions located in New England: Delaware, Rhode Island, and Vermont. Vermont launched online sports betting in January 2024 and Rhode Island online casino gambling in March 2024, making these both relatively new markets, which may explain the Q1 2025 growth compared to Q4 2024.The traditional land-based gambling capitals of the US saw online traffic increase in Q1 2025, with New Jersey seeing a 2.7% increase and Nevada a 2.6% rise. As noted above, New Jersey is transitioning to an online-revenue-led market, and the increase in traffic reinforces this further.

Interestingly, several states where online gambling is heavily restricted or banned completely saw rises in quarter-on-quarter traffic. Online gambling is not permitted in Minnesota, yet traffic increased quarter-on-quarter by 1.5%. Mississippi only allows online sports betting on the grounds of licensed casinos and saw a 0.9% increase, while Wisconsin has a similar policy and witnessed a 1.3% rise in traffic. This data could suggest the sentiments of the public in these states are shifting towards support of online gambling.Conversely, North Carolina's 5.2% quarter-over-quarter traffic drop was surprising, considering the state doubled its tax revenue expectations for online sports betting in its first year (sports betting launched in March 2024). Based on research from the General Assembly’s Fiscal Research Division. Whether this indicates a deflating in interest after an initial explosion of interest or is more of a blip remains to be seen.

What are industry experts saying?

Gambling experts offer a useful perspective when examining the quarterly performance of online gambling across the US. We’ve paid close attention to what trends prominent industry figures have spotted in Q1 2025 and have highlighted some of the most interesting insights below.

iGaming is shifting from Gen Z to Millennials

Several experts have been considering the impact that Gen Z and even Millennials will have on the iGaming market. As Rush Street Interactive CEO Richard Schwartz pointed out, players have more options than ever in the entertainment space, including within gambling and with other options. Therefore, operators need to adapt to meet those shifting needs.Chief Executive Officer of Aria Group International, Riaan Van Rooyen, agrees. Aria Group operates casinos across the US and globally. He said in a LinkedIn post:“Tomorrow’s gambler isn’t just younger—they’re wired differently. Understanding the psychology of emerging player cohorts like Millennials and Gen Z isn’t optional—it’s existential.”That’s why operators are looking beyond traditional gambling and focusing on live dealer game shows and new gamification features on online platforms.

What generation is 'Gen Z?'Gen Z is the generation born from the late 1990s to 2012, depending on your definition. Essentially, it’s the generation that by 2033 will all be 21 and eligible to gamble. This is the generation raised on mobile phones, which is why we’re seeing operators increasingly focus on mobile and online platforms.

US online poker failing to appeal to younger players

While all online gambling sectors are competing to catch the attention of Gen Z players, Devilfish.com CEO JJ Williams believes online poker is severely lacking compared to other sectors.“The glaring lack of emotional design in the current model cannot be ignored. Most platforms are functionally sound but culturally bankrupt. They prioritize fast gameplay, efficient rake systems, and sleek interfaces—yet they offer little in terms of narrative, identity, and community connection. This is a crucial oversight in an era where digital users, especially Gen Z, demand personalisation, self-expression, and meaningful engagement.”

Support for crypto-gambling integration

One technology that particularly appeals to tech-savvy generations is cryptocurrency. As iGaming website operator iGaming.com pointed out, blockchain transparency can ensure a high level of security at online casinos and appeal to younger generations as “Players can verify their gaming history, promoting trust in digital platforms. Some casinos even use smart contracts to guarantee fair play.”No US state has embraced this technology yet, but considering the demand for this tech we discussed above, this is a likely change we’ll see in the future to capture younger players’ attention.That might come at the perfect time, considering Šimon Vincze from Casino Guru recently told IGBAfilliate.com, “The expectations around safer gambling are only going forward, not backward,” something the anonymity and transparency of crypto could support.

Online casino revenue breakdown

While expert opinions and trends are one way to track iGaming performance in the US, another, more straightforward way is to track revenues. That’s why our revenue tracker is a handy tool. You can use our revenue tracker to see state-by-state breakdowns of revenues, year-on-year growth, and seasonal peaks in revenue.

For example, we’ve used the data to see that December is a particularly strong month for casino game revenue in Michigan, as the highest revenue month in 2023, 2022, and 2021.

We also used the data to point out when Michigan overtook New Jersey as the highest producer of iGaming revenue in December 2023. MI was the most significant iGaming revenue generator for five months, including December 2023, before leading in four out of the next eight months. Before this, it was rare for Michigan revenues to rise above New Jersey’s.

Dive into our casino revenue tracker to find insights of your own.

The evolving regulatory landscape

As every US state and Canadian province has the opportunity to create its own iGaming laws, it makes a fascinating legislative landscape where rules are always changing. Keeping track of legislative changes can ensure you know exactly where you can play as well as what types of gambling you can enjoy.However, with so many different states and provinces, it can be challenging to keep track. That’s why we’ve picked out some of the most important legislation and rule changes to watch in the next quarter of 2025.

United States

Many state legislatures in the US will be convening, so any pending legislation to legalize online casinos may be debated or even approved by lawmakers. One state to watch is Illinois, where HB 3080 and SB 1963 have been introduced to legalize online casinos. Governor J.B. Pritzker has supported the bills, saying they are crucial to mending a hole in the state’s budget.Other states have legislation for online casinos, including Massachusetts, with HD 4084 and SD 2240 under lawmakers' consideration. This would allow the state to give three of its land-based casinos two online casino licenses, while another four untethered licenses would be available.New Hampshire is also considering SB 186, which a committee recommended to pass the Senate, although this was back in February. While there is no guarantee any of these pieces of legislation will pass, it’s worth watching.

Canada

Like the US, each Canadian province has the chance to create its own iGaming legislation. However, only Ontario had actually passed a bill until very recently. The Legislative Assembly of Alberta passed Bill 48 in early May.Therefore, there is plenty to watch in the province. Bill 48 won’t be approved until it receives Royal Assent. Additionally, the bill does not feature details on licensing fees, tax rates, and the number of operators it permits to operate in the province. While figures like licensing fees and tax rates won’t impact you directly, these figures will influence what types of operators launch in Alberta, so it’s worth considering.

Our report in summary

Q1 2025 brought plenty of interesting trends and changes to the US iGaming market, worth watching for the rest of the year. The rise in prediction platforms could significantly change the status quo for what’s regarded as regulated betting, while the shift to online and mobile devices will probably continue.Additionally, our data showed that Delaware stood significantly apart from the rest of the US states in attracting more traffic. Whether it can continue this market-leading pace will be interesting to follow in Q2 2025 and beyond. The best place to follow any iGaming trends in Q2 2025 is right here, so be sure to come back to see our next quarterly insights.

References

Written by Chris Jonat

Content Manager

Chris has been working in iGaming for 15 years, and is now bringing his experience and expertise to Casino.org's exhaustive coverage of online casinos within the US.

Fact-checked by Alexander Korsager

Chief Gaming Officer

Alexander Korsager has been immersed in online casinos and iGaming for over 10 years, making him a dynamic Chief Gaming Officer at Casino.org. He uses his vast knowledge of the industry to ensure the delivery of exceptional content to help players across key global markets. Alexander checks every real money casino on our shortlist offers the high-quality experience players deserve.