iGaming’s Explosive Growth Over the Past Decade

Image Source: Unsplash

Just a few years ago, iGaming was a relatively small industry. Launching at almost the same time as the internet we know and love today, the industry was slow to garner users, as many still preferred the familiarity of in-person casinos.

Because the industry was so new, there were concerns over how safe it was to gamble online, how fair the casino games were, and whether winnings would be paid out. Over time, however, the industry began gaining traction. 

Today, the estimated annual revenue of online gambling in the US is valued at $3.15 billion. Internationally, this number is expected to reach $95.05 billion by the end of 2023 and grow to a astonishing $153.57 billion by 2030.

This meteoric growth may sound strange if you’ve never engaged with the iGaming industry, but online gambling has a detailed history, particularly in the US. Read on as we examine the sector’s explosive growth and how it has evolved over the past decade. 

 

Early Law Revisions

The first online casino was launched in 1994, just one year after the internet became public. However, gamblers in America were excluded from accessing these websites for an extended time due to laws strictly prohibiting online casinos. As a result, the American iGaming industry was virtually non-existent during this time.

Until 2011, all online gambling was governed by the Wire Act of 1961. Although this law was written long before the advent of the internet, it effectively banned any forms of online wagering and meant that no US citizen could legally access online casinos.

Following the landmark decision of the Department of Justice in 2011, states were given individual rights to decriminalize online gambling. Although initially apprehensive, many states quickly began discussing whether they should legalize online gambling. 

 

Slow Industry Growth

After the DOJ’s decision, the launch of online casinos was initially slow. Within the first few years, only a handful of states had tried to legalize the pastime. 

Nevada, home to the famous Las Vegas and world-famous casinos like Wynn Las Vegas, was at the forefront of adopting iGaming. Already working towards revisions to the law in 2010, the state welcomed the decision of the DOJ a year later. Within a short time, the state had ratified laws surrounding iGaming, and online casinos were officially legalized. Sports betting, however, remained prohibited. 

Delaware was not far behind. Just a year after the 2011 decision, the state made provisions for legal online gambling. At the time, it was the first state to allow the full suite of online gambling, including casino games, poker, and roulette—with only sports betting excluded. 

A year later, New Jersey—home to the famous gambling destination Atlantic City—joined in and legalized iGaming. At the time, New Jersey was considered the best test for the industry’s viability due to the large number of players in the region.

Under the watchful eye of the New Jersey Division of Gaming Enforcement, the industry launched successfully. In just a few months, the first online casino was established in the state, giving players access to the incredible features of gambling websites and perks like the bonuses found on casinos.com.

Although these states legalized online gambling in a relatively short time, aiding the growth of the industry and inspiring significant investment and innovation, things moved slowly. No new states legalized the pastime for several years, even as the sector skyrocketed in other parts of the world. 

 

Major Changes

By 2018, no new states had joined the original three in allowing online gambling. Following this, another milestone in the history of iGaming occurred following a ruling by the Supreme Court.

Facing an illegal sports betting industry generating millions of dollars in revenue each year, the Supreme Court decided to overrule the 1992 Federal Professional and Amateur Sports Protection Act that had prohibited online and in-person sports betting on the grounds that it was unconstitutional. 

As such, individual states were allowed to legalize sports betting as and when they saw fit. With this ruling, the iGaming industry’s floodgates burst open across the country. 

 

Industry Explosion

Within just a few years, more than 30 states have legalized sports betting as of 2023. Many of them have opted to allow the activity online due to the convenient nature of bookmaker websites. Among the first states to do this after 2018 were Indiana, Iowa, New Hampshire, Oregon, Pennsylvania, Rhode Island, Washington, and West Virginia. 

The wide adoption of sports betting spurred the iGaming industry into the limelight, resulting in massive growth. This was aided even further in the early 2020s by global shutdowns caused by the COVID-19 pandemic.

Stuck at home and looking for entertainment, people began using iGaming websites more than ever. According to estimates, 60% of new gamblers lived in states where online gambling had become legal within the last year.

This influx of new online gamblers drastically increased the revenue generated by the sector. With so many new players, competition between operators and providers also intensified. 

The new competition caused by the surge in demand for quality entertainment, and iGaming services encouraged innovation in the market and forced almost every online casino to review its services and operations. As such, many states that initially only allowed sports betting have expanded their laws to allow online casinos and related games as well.

 

The Future

Although the iGaming industry is now miles ahead of where it was a decade ago, every operator and developer in the sector strives for innovation. With the adoption of new technologies, such as the inclusion of artificial intelligence in online casinos that recommend games to players, the industry is set to continue growing at an incredible rate. 

This means better services, more immersive games, and plenty of new opportunities to seek out luck and win big. Even if most players don’t win a ton of money, the iGaming sector still works hard to ensure they have fun trying.