The U.S. online casino market is on a clear path to more than double by 2030, climbing $54.8 billion, driven by a perfect storm of new state legalizations, mobile-first technology, and fintech that makes depositing money feel instant. While only seven states currently offer full iGaming, the early leaders are already printing cash.
Over the year, Pennsylvania alone generated $3.3 billion, Michigan and New Jersey has generated $2.9 billion and $2.7 billion, respectively. Every new state that start performing good in Online Casino industry, instantly lands hundreds of millions in fresh taxable revenue. Combine that with fast-climbing player counts 39% of Americans bet on sports, and 19% have an active betting account. Another notable fact is 95% of those bets happen phones. So, each new iGaming state will light up another batch of smartphones in the online casino industry. Ultimately, this will speed up the cash flows, hence a straight-line doubling by the end of the decade.
What’s Actually Driving the Explosion
The real shift began after the 2018 Supreme Court decision. Since then 38 states plus D.C have legalized sports betting. Among these 30 allow online betting, that ultimately is now spilling into pure online casinos. In 2024, total U.S. commercial gaming revenue hit a record $66.5 billion, but the online gaming industry grows 3x than land-based casinos.
The fintech integrations like instant digital wallets, crypto deposits and Venmo-style payouts made it easier for players to fund accounts in seconds. A fresh Siena College/St. Bonaventure survey shows 19% of adults, and a whopping 39% of men 18-49, keep an active betting app on their phone.
A look Into the Casino Industry
The winners are already public and easy to own. Flutter Entertainment (NYSE:FLUT), the $106 billion mega-cap behind FanDuel, controls 42% of U.S. sports betting and more than 35% of iGaming revenue in legalized states, posting $5.9 billion in 2024 U.S. revenue alone. Benchmark recently trimmed its target to $310 from $365 but kept a Buy, labeling the latest dip “a highly attractive entry point” as FanDuel keeps gaining share in a market headed to $12.8 billion by 2030.
How to Invest in U.S. Online Casinos
The U.S. online casino sector is no longer a side bet, it’s the main event, with revenues projected to double by 2030 amid a regulatory thaw that’s legalized iGaming in 7 states and counting. Investors can capture the surge of legalized iGaming by focusing on two buckets: pure-play digital operators like Flutter Entertainment (NYSE:FLUT), the $106 billion mega-cap behind FanDuel that snagged 40% of sports betting handle and hybrid giants blending resorts with apps, such as MGM Resorts (NYSE:MGM) and Caesars Entertainment (NASDAQ:CZR).
Investors who want to spread the risk, ETFs are safer. Roundhill Sports Betting & iGaming ETF (NYSEARCA:BETZ) loads up on FLUT and DraftKings (NASDAQ:DKNG) for pure online exposure, delivering 22% returns in 2025 so far, while the VanEck Gaming ETF (NYSEARCA:BJK) mixes in global heavyweights like Las Vegas Sands (NYSE:LVS) for diversified stability.
The biggest risk for traditional casino stocks isn’t online competition but it’s regulators opening the floodgates to more physical casinos. When states like Massachusetts or D.C. add new licenses to plug budget holes, the extra supply crushes revenue per property and hammers the stocks of MGM, Caesars, Boyd, and Penn alike. That old-school oversupply threat simply doesn’t exist in the regulated online casino space: once a state flips the iGaming switch, the number of licensed operators is tightly capped, and the pie keeps growing with population and smartphones instead of shrinking.
That’s why the cleanest, lowest-risk way into the U.S. online casino boom isn’t the land-based giants or even the pure-play operators, but the companies that already own the digital racetrack. Flutter (FLUT) and DraftKings (DKNG) dominate a market where new supply can’t be printed overnight, while ETFs like BETZ let you ride both horses without picking a winner.
Risks and Rewards
Like all other industries, investing in Online Casino industry has also its risks and rewards. With the change in regulations, taxes and recessions, can make big changes overnight.
On the other hand, capped licenses, 95% of bets on phones, and a revenue line that’s still compounding at 20%+ in every new state are optimistic facts for the investors. Jobs, tax dollars, and user growth keep lawmakers hooked, while the shift from felt to screen has turned a cyclical vice into a structural growth story. Investing wisely by keeping position sizes sensible and stay informed with the market trends and news, the U.S. online casino investment still offers one of the cleanest doubles left on the board by 2030.
