2021 was a roller coaster for many enterprises around the world. While some industries came to a screeching halt, a handful reported unprecedented profits. It wasn’t just big pharma companies like Pfizer and Johnson & Johnson that did well. The iGaming sector soared to new heights as people took to online casinos and sportsbooks while stuck at home. Land based casinos and betting parlors on the other hand, went through a hellish nightmare and many of them even shut shop for good.
Fortunately for the iGaming sector, many gamblers who took to online casino gaming during periods of several lockdowns, have stuck to it even after the world eventually loosened its reigns on restrictions. The future for online gambling in the US looks exciting with plenty of fresh possibilities for both commerce and entertainment. The US iGaming market is undergoing a transformation, as many more states are putting out new gambling legislation in an effort to change the stale legislation that presently forbids various types of gambling in the country.
The school of thought is that there is both a market and a financial incentive for states to adopt the practice is supported by the current rate of growth for legalized sports betting in the United States. Sportsbooks have far smaller profit margins, and lawmakers are soon realizing that taxable revenue from online casinos may much exceed that of the sports betting markets.
Many US States have Already Legalized Some Forms of Online Gambling
The US Supreme Court issued the historic decision to allow sports betting throughout the nation in May 2018. Prior to then, the federal ban on sports betting resulted in an estimated $150 billion in annual illicit betting by Americans.
The question of unrestricted gambling is still a heated one. The 2018 Supreme Court ruling basically leaves up to individual states whether they want to regulate online gambling or not.
After arguing for the legalization of sports betting for many years, New Jersey took the matter before the Supreme Court for the first time. After being deemed unconstitutional, the federal ban on sports betting was finally overturned, allowing individual states to establish and regulate their own body of sports betting services. Since then, sportsbooks have been springing up all across the nation.
Expect Collaborations between Offshore Brands and US Providers
This is a significant development for the American entertainment industry. As more states introduce legislation, global brands are becoming more interested in expanding their reach and breaking into the American market. Additionally, international betting operators have already established partnerships with American businesses to help them break into the market.
These collaborations will be much more beneficial in the area of online casinos. The leading software suppliers in the world support the large game portfolios used across Europe, and their CRM models and incentive schemes have been perfected. US providers can simply onboard such solutions and hit the ground running from day 1. It’s likely that the established gambling companies in the US will either attempt to collaborate with or purchase these current operators in a race to release the finest product on the market first.
Top-rated guide with a focus on the US market, NoDepositDaily.com was asked why this market has the potential to be bigger than anything we have seen so far around the world.
“The USA has is a market where the gross capita income is bigger than nearly any other country. And with over 325 million people, it’s easy to do the math and see the potential. Most players are looking for an easy entry into gambling online and most are choosing no deposit bonuses as there is limited risk to real money.”
The US Online Casino Market Still has Plenty of Challenges to Overcome
Despite the fact that most states are realizing the benefits of legalizing online casinos, it’s not all smooth sailing for virtual casino and sportsbook providers. Some states are getting on board with the trend, as is the case with Illinois which recently legalized online casinos.
Many legislators and people across the country are almost vehemently opposed to the legalization of internet gambling. Proponents say that legalizing and regulating the market will lead to the elimination of the grey market which is unregulated and does not care about the well-being of the consumers.
Furthermore, proponents also point out that legalization will lead to massive tax revenue being generated for the states, which can be used for the need of the hour in that particular state. Opponents, however, seem convinced that allowing people to gamble from their computers or mobiles will lead to a huge spike in online gambling addiction.
Sports betting had also faced the same kind of opposition a couple of years ago despite its more widespread legal presence in the USA. There is no evidence to support that people are now more addicted to sports betting than before it was legalized and regulated.
If anything, regulated providers can be closely monitored and forced to implement responsible gambling tools, anti-money laundering techniques and other security verification protocols. In addition, it is argued that offshore operators care less about these safety protocols.
America Will Not Be Left Behind
Whenever Americans decide to do something, they do it bigger and better than anywhere else. Therefore, there is no doubt that the iGaming industry will follow this trend too. Being such a large sector that’s as innovative as it is competitive, it will inevitably become more generally accepted and legalized in the US. The question is not ‘if’ it will become legal but rather ‘when’ will it become legal.