As online gambling continues to surge globally, two of the most prominent markets—the United States and the United Kingdom—have taken center stage in shaping the industry’s future.
The latest overview from Jackpot Sounds dives deep into the similarities and differences between these two regions, providing valuable insights into revenue trends, legal developments, player preferences, and emerging technologies.
This sweeping comparison reveals how the USA’s rapidly expanding market is challenging the UK’s well-established dominance, offering a detailed look at the factors driving growth and the challenges ahead for both regions.
Whether it is the rise of online sports betting in the US or tightening regulations in the UK, this report brings to light the key developments that are shaping the global online gambling.
Overview of the USA and UK Online Gambling Markets
The online gambling markets in the USA and the UK differ in several ways, especially when comparing their regulation, market size, and player preferences.
Rapid Expansion of Sports Betting
Since the 2018 Supreme Court decision, sports betting has seen exponential growth. By 2023, over 30 states legalized sports betting.
Mobile sports betting dominates, accounting for over 80% of total wagers placed. The rise of live, in-game betting has also attracted new players.
For example, in 2022, New York alone generated over $700 million in sports betting revenue within its first year of legalization.
State-by-State Legalization of Online Casinos
While online sports betting is legal in many states, online casinos are still limited to a few states. However, the number of states considering full online casino legalization is growing.
Integration of Online and Offline Gambling
Major casino operators like Caesars, MGM Resorts, and Penn Entertainment are integrating their online and offline platforms to provide seamless experiences for players.
Many online casinos offer loyalty programs linked to their physical locations, driving foot traffic back to brick-and-mortar properties.
Increased Focus on Responsible Gambling
As the market grows, so does the focus on responsible gambling.
States like New Jersey and Michigan have implemented enhanced responsible gambling features, including multi-state self-exclusion programs.
Operators are prominently required to display responsible gambling resources, and some states are considering the introduction of affordability checks.
The UK has a more mature market, while the USA is still developing its online gambling landscape after years of strict regulations.
Tightening Regulations and Affordability Checks
In the UK, regulatory changes are tightening, with the ongoing Gambling Act Review expected to bring new restrictions. This includes potential affordability checks, limits on stakes for online slots, and a greater focus on preventing problem gambling.
The introduction of a £2 stake limit for online slots in 2021 was designed to reduce gambling-related harm, and further restrictions may come into effect in 2024.
Ban on Gambling Sponsorships in Sports
In 2023, the UK government announced plans to ban gambling sponsorships on football shirts by 2026. While this has led to a decrease in direct gambling advertising through sports, operators are shifting to digital advertising and partnerships.
This trend is causing significant changes in how operators market their services, pushing them toward more responsible and targeted campaigns.
Popularity of Online Casinos and Slots
While sports betting remains a significant part of the UK market, online casinos, particularly online slots, continue to grow in popularity.
In 2023, online slots contributed over £3 billion to the UK’s online gambling revenue. The introduction of new slot mechanics and more interactive games is driving this trend, and major operators are constantly innovating to attract players.
Growth of Esports Betting
Esports betting is an emerging trend in the UK, particularly among younger audiences. The market for betting on esports, such as League of Legends, Dota 2, and Counter-Strike, is expected to grow by over 10% annually through 2024.
Rise of New Technologies and Virtual Reality
The UK gambling market is seeing increased use of new technologies like virtual reality and augmented reality to enhance the player experience.
Several operators are experimenting with VR casinos, which allow players to enjoy immersive gambling experiences.
Although still in its early stages, the adoption of VR in online gambling is expected to grow in the coming years.
Emphasis on Safer Gambling Advertising
New guidelines introduced by the ASA require operators to avoid targeting vulnerable audiences, especially young people, with gambling advertisements.
Safer gambling messaging is now mandatory in all ads, and operators are being scrutinized for their marketing practices.
As a result, there has been a shift toward more responsible and transparent advertising.
Regulatory Landscape
USA Online Gambling-Related Legislation
The USA has a complex regulatory framework. Online gambling was illegal under federal law for many years. The Wire Act of 1961 made it unlawful to place bets using wire communications.
The Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006 prohibited banks from processing transactions for online gambling sites. These restrictions shaped the market.
However, in May 2018, the Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA) of 1992. This decision gave individual states the power to regulate sports betting.
States like New Jersey and Pennsylvania quickly legalized online gambling.
As of 2024, over 30 states have legalized sports betting, but only six states (e.g., New Jersey, Pennsylvania, Michigan) allow full online casino gaming. For more details on online gambling legality in the USA, check the Jackpot Sounds website and integrate into safe igaming environment.
Online Gambling Legislation in the UK
The UK’s online gambling market has been legal and regulated since the Gambling Act of 2005. This law established the UK Gambling Commission (UKGC), responsible for licensing and regulating all online and offline gambling activities.
The UKGC ensures consumer protection, fair play, and operator accountability. Since April 2019, the UK banned the use of credit cards for online gambling to address problem gambling.
The UK has a unified market regulated nationwide. In contrast, the USA operates on a state-by-state basis, making regulation more fragmented.
Market Size of the USA and UK iGaming Markets
USA
Despite its relatively new legalization, the USA’s online gambling market is growing rapidly.
In 2021, the American online gambling market was valued at $2.65 billion. By 2024, it is expected to reach $8 billion, according to estimates by Goldman Sachs.
New Jersey and Pennsylvania are two of the largest markets, generating billions in revenue. In 2022, New Jersey reported over $1.6 billion in online gaming revenue. Michigan is another fast-growing market, with revenues reaching $1.4 billion in 2023.
Sports betting is particularly dominant in the USA. The American Gaming Association (AGA) reported that American bettors placed over $57 billion in legal sports bets in 2022.
Online Gambling Market Growth in the USA
- 2020: The US online gambling market was valued at around $1.6 billion. The year saw significant growth due to the pandemic, which pushed more players online, especially in states like NJ and PA.
- 2021: The market grew to $2.65 billion, driven by the expansion of sports betting and the addition of Michigan and other states that legalized online casino gaming.
- 2022: The total market size in 2022 reached around $4.5 billion, as more states, including New York and Louisiana, entered the online sports betting space. The US market continued to experience explosive growth as new players adopted online gambling.
- 2023: By 2023, the US online gambling market surged to $6.6 billion. The legalization of sports betting in major states like Ohio and Massachusetts contributed to this spike in revenue.
- 2024: The US online gambling market is expected to surpass $8 billion by the end of 2024, with more states expected to legalize online casinos, including potentially large markets like Texas and California. The sports betting segment remains the primary driver of growth.
UK
The UK’s online gambling market is one of the largest in the world. In 2023, the UK online gambling market generated approximately £6.4 billion ($8.2 billion).
Online gambling accounts for over 35% of the total UK gambling industry’s revenue. Sports betting, casino games, and bingo are the most popular online activities in the UK.
The UKGC estimates that there are over 33 million active online gambling accounts across the UK.
Online Gambling Market Growth in the UK
- 2020: In 2020, the UK online gambling market generated around £5.7 billion ($7.1 billion). The pandemic accelerated the shift to online gambling, especially for online casinos and sports betting, as physical locations were closed.
- 2021: The market grew to £6.2 billion ($7.7 billion). The ongoing pandemic, combined with increased online activity, contributed to this steady growth.
- 2022: In 2022, the UK online gambling market generated £6.5 billion (approximately $8 billion. The stabilization of sports schedules post-pandemic and the continued popularity of online casinos helped maintain strong revenue figures.
- 2023: The market reached £6.4 billion ($8.2 billion) in 2023, experiencing a slight decrease due to increased regulatory pressures, including the ban on credit card gambling and tighter advertising restrictions.
- 2024: The UK online gambling market is expected to stabilize at around £6.6 billion ($8.4 billion) in 2024. Growth in the online casino and bingo sectors is expected to offset any further regulatory impacts.
Popular Online Gambling Activities
Gambling Activities Popular in the USA
In the USA, sports betting is the most popular form of online gambling. The NFL and NBA are the most bet-on leagues.
The Super Bowl in 2023 alone attracted over $16 billion in bets, according to the AGA. The DFS are also popular, with platforms like DraftKings and FanDuel operating in almost every state.
Online casinos are less widespread in the USA but are rapidly gaining ground. New Jersey, Pennsylvania, and Michigan offer a wide variety of online casino games like
● slots,
● baccarat,
● blackjack, and
● poker.
PokerStars is a major player in the online poker market, operating in several states.
UK Gamblers Top Activities at Online Casinos
The UK has a more diverse online gambling market. Online sports betting is the most popular, with football (soccer), horse racing, and tennis drawing the most bets.
The English Premier League (EPL) is the most bet-on league, and major events like the Grand National and
Wimbledon also attract significant wagers.
Online casino gaming is also prevalent in the UK. Games like online slots, roulette, and blackjack are favorites among UK players.
The UKGC estimates that over 70% of online casino players in the UK play online slots, with jackpot slots being particularly popular. Online bingo is another significant sector, contributing around £800 million annually to the market.
Key Players in the Market
USA
The USA’s online gambling market is dominated by a few major companies. DraftKings and FanDuel lead the sports betting and daily fantasy sports markets.
Both companies have expanded into online casino gaming, particularly in states like New Jersey and Michigan.
BetMGM, operated by MGM Resorts International, has a strong presence in both sports betting and online casinos.
Another key player is Caesars Entertainment, which operates online platforms in several states.
Barstool Sportsbook, backed by Penn Entertainment, is also growing in popularity.
UK
In the UK, the online gambling market is more mature, with several well-established brands. Bet365 is the largest online gambling company in the UK, with annual revenues exceeding £2.8 billion.
It is a dominant force in online sports betting and casino gaming. Ladbrokes Coral, owned by Entain, is another major player, offering sports betting, casino gaming, and bingo services.
Flutter Entertainment, the parent company of Paddy Power and Betfair, operates some of the UK’s most popular online platforms. William Hill and 888 Holdings are also major operators in the UK market.
Consumer Protections and Responsible Gambling
USA
In the USA, consumer protections vary by state. States like New Jersey and Michigan have stringent regulations to protect players, including self-exclusion programs and responsible gambling measures. The National Council on Problem Gambling (NCPG) offers a National Problem Gambling Helpline and runs public awareness campaigns.
In 2021, operators in Michigan and Pennsylvania launched initiatives like PlayPause, a multi-state self-exclusion tool to help address gambling addiction.
States require operators to display responsible gambling information and provide access to resources for problem gamblers.
UK
The UK is known for its strict responsible gambling regulations. The UKGC mandates that all operators adhere to responsible gambling standards, including offering self-exclusion tools like GAMSTOP.
GAMSTOP allows players to self-exclude from all licensed gambling sites in the UK.
The UKGC also introduced the £2 stake limit for online slot games in 2021 to reduce gambling-related harm. The regulator conducts regular reviews and updates to the rules to ensure consumer safety.
Operators must also contribute to organizations like GambleAware, which provides support for those affected by gambling addiction.
Advertising and Sponsorship
USA
Advertising for online gambling in the USA has exploded since PASPA was overturned in 2018. Major sports leagues, including the NFL, NBA, and MLB, have entered partnerships with sportsbooks.
Caesars, DraftKings, and FanDuel all have deals with professional teams and leagues.
For example, in 2021, the NFL signed partnerships with Caesars, DraftKings, and FanDuel, becoming the first major league to embrace sports betting.
TV networks and online platforms like ESPN have also integrated sports betting content into their programming.
UK
The UK has a long history of sports betting sponsorships. Football clubs across the Premier League have had betting sponsors for years.
However, in 2023, the UK government proposed a ban on gambling sponsorships on football shirts, which will come into effect by 2026.
Despite this, companies like Bet365, Ladbrokes, and William Hill continue to be major advertisers.
Online gambling companies in the UK are required to include responsible gambling messages in all advertising.
The ASA and UKGC regulate gambling advertisements and ensure that they do not target vulnerable individuals, such as minors.
Future Trends in the USA and UK iGaming Markets
USA
The future of the US online gambling market is bright. States like Texas and California, two of the most populous in the country, are likely to consider legalizing online gambling in the coming years. The introduction of mobile apps for sports betting and online casinos is expected to further drive growth.
The total value of the market is projected to exceed $20 billion by 2026 if more states legalize online casino gaming.
UK
In the UK, the online gambling market is expected to remain stable. However, there could be further tightening of regulations.
The UK government’s ongoing Gambling Act Review might introduce new measures, such as affordability checks for players and stricter advertising rules.
Despite these potential restrictions, the market is forecast to grow at a steady rate of 5% annually, with the online casino sector leading the growth.
Conclusion
The online gambling markets in the USA and UK are both substantial, but they differ in regulation, market maturity, and player behavior.
While the USA is catching up quickly due to its recent legalization efforts, the UK remains a global leader in terms of regulation and market size. Both markets will likely continue to grow, albeit with different trends and challenges.