With a population of more than 328 million, the USA is a large market. Yet, when it comes to online gambling, we cannot talk about the country as a whole. As the legal landscape of this form of entertainment varies from state to state. In this article, we will discuss the USA online gambling industry expectations in 2021. Stay with us to find out more about this emerging market. And even more important, what we can expect from it in this year.
Overview of US Online Gambling Market
The United States of America consists of 50 states and each one of them has its own set of regulations addressing online gambling. So, there is no federal law that regulates this form of entertainment, which makes the current legal situation complicated. The legal and regulatory landscape of online gambling differs from state to state. And the US Department of Justice (DOJ) has left it to the states to regulate their market.
In March 2021, a few news portals reported that the DOJ had abandoned the online gambling fight. For the last decade, the DOJ had been trying to criminalize online gambling and online poker in the US utilizing the Federal Wire Act from 1961. According to the decision of the First Circuit Court of Appeals, the 1961 act applies only to interstate sports betting, and not to online casino games or online poker. Since the DOJ won’t appeal this decision to the Supreme Court, this could imply that US players will be allowed to enjoy interstate online gambling. Yet, instead of jumping to conclusions, let’s take a closer look at the current state of affairs and the stats that have legalized online gambling.
At the moment of writing this article, more than 20 US states have legalized sports betting. As for online gambling, the regulated markets include Pennsylvania, New Jersey, Delaware and Nevada. It is estimated that the US sports betting and online gambling market in the US is worth $33 billion. According to the report United States Online Gambling Market – Growth, Trends and Forecasts added to the Research and Markets website in March 2020. New Jersey is the largest regulated online gambling market in the US. This market is worth is over $225 million a year.
The report also states that Pennsylvania is the biggest state to legalize and regulate online gambling. Where online casinos, online poker, sports betting, and other forms of entertainment being allowed. According to the data published by the American Gaming Association, in 2017. The state’s total gross gaming revenue from land-based casinos amounted to approximately $3.2 billion. So, the regulation of remote gambling in 2021 is expected to increase the number of online casino games downloads and add more revenues in this market.
What Can We Expect from US Online Gambling Market in 2021?
Some sources state that it is expected that in 2021, online gambling revenue will account for more than 20% of the total gambling revenue. The percentage could be bigger as more states are expected to legalize this form of entertainment. According to some projections, at least 37 states will allow online gambling by 2023. At this moment, a total of 28 states have already proposed legislation and passed bills to legalize online gambling and sports betting.
However, the process of legalization may take longer for games of skill and chance as the majority of US states are not embracing remote gambling as they have traditional gambling venues. Still, more and more states are pushing to authorize online casinos, including Connecticut, Illinois, California, New York and more. The next two states that could complete the legalization process in 2021 are Maryland and Massachusetts.
Anyways, the US online gambling market is projected to register a compound annual growth rate (CAGR) of 15.41% . This will be between 2020 and 2025, the mentioned report says.
Popularity of Live Casino Games Will Keep Increasing
Live casino games have taken the industry by storm and their popularity will just keep increasing. Considered to be one of the greatest innovations when it comes to gambling. The live casino technology has enabled players to enjoy a genuine casino atmosphere wherever they are with that action taking place in real-time.
The above-mentioned report states that the live casino market is still at a nascent stage in the US due to the stringent regulations. Yet, some of the leading software providers, like Ezugi and Evolution Gaming, have already obtained licenses to offer their products in New Jersey. No doubt, the US is an attractive market for the global players who are ready to invest considerable amounts of money to enter it and expand their presence.
The report reminds us that Evolution Gaming opened its first live casino studio in Vancouver in January 2019. And that its New Jersey studio offers a total of ten tables. Furthermore, the provider has signed agreements with a range of licensed operators. This includes Hard Rock Hotel & Casino Atlantic City, 888casino and PokerStars Casino New Jersey to offer its live dealer games. In the report, you can learn that several US-facing operators already have live casino game in their portfolios. Such as Ignition, BetOnline, Bovada and The BoVegas Casino.
E-sports, VR and AR Will Be Huge
The COVID pandemic has changed the way we enjoy our pastime activities, making us stay at our homes. That’s why more and more people turn to the streaming sites like Twitch or YouTube. Since going to sports events won’t be possible in the near future. We can expect more and more players to start enjoying e-sports. This niche has already seen people from different walks of life investing their own money into it. And in 2021, we can expect it to get more exposure, which can lead to an increase in revenues.
This year will be all about socializing online, and we can expect it to reflect on online gambling as well. The online gambling industry has been innovative so far. So it will come as no surprise that it will come up with new solutions designed to enrich the user experience. Although they may not be new, like Augmented Reality or Virtual Reality. They may be employed more than they have been so far. The integration of AR and VR could contribute to a more realistic gaming experience. Allowing players to take a walk through an online casino and enjoy more immersive and interactive action.
More Crypto-Friendly Online Casinos
Cryptocurrencies have been a great option for US players. Enabling them to play on offshore gambling sites without the risk of getting their money seized by authorities. Bitcoin and other digital currencies such as Ethereum, Litecoin and more are considered to be the most convenient banking methods regardless of the part of the world you are coming from, though. They are safe and secure, and allow you to transfer your funds quickly with no additional costs.
These are some of the reasons why we expect to see more crypto-based online casinos accepting players from the USA. Even when this form of entertainment will be regulated throughout the country and players won’t have to worry about their funds and legality of playing casino games. Cryptocurrencies will make a great solution for topping up casino accounts and clearing winnings from them.
Whatever anyone says, online gambling is a form of entertainment that can have a huge impact on state economies if legalized. When a state regulates its online gambling market, it can contribute to generating additional revenues. This was the key idea behind the legalization of national lotteries in the 20th century. At this point, the USA lags behind the developed world countries that have already allowed online casino games. That’s why we hope that more states will complete the legislation and regulate remote gambling soon.
While working on the legislation, the authorities of each US state should develop programs that will ensure responsible gambling. They can follow the experience of trustworthy jurisdictions such as the United Kingdom. In this case, the local regulator, the UK Gambling Commission, ensures that operators promote responsible gaming when offering their services.. Responsible gambling tools should enable players to avoid getting addicted to gambling.
Some of the tools available at reputable online casinos that should prevent problem gambling include deposit and loss limits, session limits, reality checks and time outs. Besides, trusted operators offer self-exclusion programs that enable players to close their accounts for a preferred amount of time, from 3 months to 5 years. We expect that more US-friendly gambling sites will offer such programs in 2021 and make sure that their customers don’t wager more than they can afford.