Online Gambling Services in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: January 2024
NAICS OD6159Revenue
$10.2bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
42,471
Businesses
381
Wages
$X.Xbn
Online Gambling Services in the US industry analysis
Online gambling services in the US are hosted on internet platforms which enable consumers to wager on events such as digital table games or other sporting events, including horse racing. This relatively small but robust industry has sought to capture more consumer demand for gambling services by branching out into hosting online platforms. Other players in the sports betting segment are newer, online-based endeavors, like DraftKings, which entered the industry in 2018. In 2020, despite the outbreak of COVID-19, the industry experienced booming growth, though rising operating costs hindered profit. Demand rose as leisure time and disposable income both increased, benefiting gambling service providers in states which had legalized online gambling. Over the five years to 2024, revenue grew at a CAGR of 41.1% to reach $10.2 billion, including an estimated rise of 20.0% in 2024 alone.
Trends and Insights
- The Professional and Amateur Sports Protection Act (PASPA) of 1992 prevented states that had not already voted to permit legal online gambling from doing so. This changed in 2018 when the Supreme Court struck down PASPA as unconstitutional, opening the flood gates for states to vote on whether they should choose to permit online gambling within their borders.
- Online gambling services primarily enable users to place bets online. These bets include digital table games, sports bets, poker and horse racing. The product mix for the industry is anticipated to change as more states legalize online gambling as a whole.
- The location of industry establishments is highly dependent on the legality of online gambling within each individual state. The Supreme Court ruling overturning PASPA has resulted in states' ability to establish their own regulated gambling industries.
- The industry has a medium level of market share concentration. Through a series of mergers and acquisitions, Flutter Entertainment has grown to control the largest market share in the online gambling industry.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 41.1 % over the past five years, to reach an estimated $10.2bn in 2024.
Trends and Insights
Legalities and limitations vary state by state
- The legality of online gambling in the US is determined by the varying laws and regulations from state to state.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
More states will legalize online gambling
- More consumers in the US continue are embracing the industry, and the normalization of online gambling will lead to more states considering its legalization.
Biggest companies in the Online Gambling Services in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Flutter Entertainment Plc | 1,617.1 | -16.7 | -1.0 | |
Draftkings Inc. | 1,078.1 | -906.9 | -84.1 | |
Mgm Resorts International | 1,017.5 | -514.7 | -50.6 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Online sports betting, Online poker and Online gaming. Online sports betting is the largest segment of the Online Gambling Services in the US.
Trends and Insights
Sports betting is the most popular form of online gambling
- Consumers watch sports as a form of entertainment, and sports betting can provide the consumer with additional entertainment and often increases the bettor's interest in the game.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- There are no industries to display.
International industries
- Global Casinos & Online Gambling
- Global Sports Betting & Lotteries
- Global Tourism
Table of Contents
About this industry
Industry definition
Companies in this industry enable users to place bets online. These bets include digital table games and sports bets.
What's included in this industry?
Hosting online table gamesHosting online sports bettingHosting online horse bettingCompanies
Flutter Entertainment PlcDraftkings Inc.Mgm Resorts InternationalPurchase this report to view all 4 major companies in this industry.
Related Terms
VIRTUAL TABLE GAMEPROFESSIONAL AND AMATEUR SPORTS PROTECTION ACTUNLAWFUL INTERNET GAMBLING ENFORCEMENT ACT (UGIEA)Industry Code
NAICS 71321 - Online Gambling Services in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The Professional and Amateur Sports Protection Act (PASPA) of 1992 prevented states that had not already voted to permit legal online gambling from doing so. This changed in ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Online gambling services primarily enable users to place bets online. These bets include digital table games, sports bets, poker and horse racing. The product mix for the ind...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The location of industry establishments is highly dependent on the legality of online gambling within each individual state. The Supreme Court ruling overturning PASPA has re...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The industry has a medium level of market share concentration. Through a series of mergers and acquisitions, Flutter Entertainment has grown to control the largest market sha...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Flutter Entertainment is a private company with an estimated 16,813 employees. In the US, the company has a notable market share in the industry, where they account for an es...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Flutter Entertainment Plc's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Draftkings Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Mgm Resorts International's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Flutter Entertainment Plc, and factors influencing its performance in the industry
- Description and key data for Draftkings Inc., and factors influencing its performance in the industry
- Description and key data for Mgm Resorts International, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The industry is subject to a heavy and steady level of regulation. Industry players operate in a tightly regulated environment as the legality of online gambling varies state...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profitability has been unstable since the industry is relatively young. Operators can charge fees for their sites to increase profit and mitigate the risk of loss due to high...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Online Gambling Services in the US industry in United States in 2024?
The market size of the Online Gambling Services in the US industry in United States is $10.2bn in 2024.
How many businesses are there in the Online Gambling Services in the US industry in 2024?
There are 381 businesses in the Online Gambling Services in the US industry in United States, which has grown at a CAGR of 51.3 % between 2019 and 2024.
Has the Online Gambling Services in the US industry in United States grown or declined over the past 5 years?
The market size of the Online Gambling Services in the US industry in United States has been growing at a CAGR of 41.1 % between 2019 and 2024.
What is the forecast growth of the Online Gambling Services in the US industry in United States over the next 5 years?
Over the next five years, the Online Gambling Services in the US industry in United States is expected to grow.
What are the biggest companies in the Online Gambling Services in the US market in United States?
The biggest companies operating in the Online Gambling Services market in United States are Flutter Entertainment Plc, Draftkings Inc. and Mgm Resorts International
What does the Online Gambling Services in the US in United States include?
Hosting online table games and Hosting online sports betting are part of the Online Gambling Services in the US industry.
Which companies have the highest market share in the Online Gambling Services in the US in United States?
The company holding the most market share in United States is Flutter Entertainment Plc.
How competitive is the Online Gambling Services in the US industry in United States?
The level of competition is high and increasing in the Online Gambling Services in the US industry in United States.
