Expansion of Online Gambling Income in the USA Reaching Record Highs
In a remarkable showcase of growth, online casinos in the United States have seen an exceptional surge in revenue over the past year. The sector's robust performance is evident as every participating state posted a minimum year-over-year growth rate of nearly 27% for the first five months of 2025.
In May alone, online casinos generated more than $898.1 million in gross revenue, marking a 33% increase compared to May 2024’s total of about $675 million. This rapid expansion has been particularly notable in states like Pennsylvania, where the online casino industry generated $289 million, a nearly 35% increase from the previous year.
Pennsylvania stands as the leading state in online casino revenue, but it is not alone. Delaware's BetRivers online casino broke its previous record, reporting over $10 million in May and more than doubling its gross revenue from the same period last year. West Virginia's online casino revenue saw a significant 104% increase year-over-year, reaching over $34 million. Connecticut's online casino revenue reached more than $61 million, and Michigan's was just under $252 million, marking an increase of almost 27% year-over-year.
Notably, Pennsylvania is the only state to have surpassed $1 billion in iCasino revenue thus far in 2025. The state of New Jersey's online casino gross revenue in May was nearly $247 million, a 28.5% increase over last year. Rhode Island's Bally's operation generated almost $5 million in May, celebrating a 110% year-over-year increase.
The growth in the online casino industry is not limited to these states. Ohio has two bills currently being discussed by lawmakers regarding online casinos, while in places like Maryland, Massachusetts, Indiana, and New Hampshire, lawmakers are considering or actively debating legislation to legalize online casinos. However, as of mid-2025, these efforts have not yet resulted in new laws.
The American Gaming Association reported that the commercial gaming industry earned $6.18 billion in April from traditional casino games, sports betting, and online gaming, a 5.6% increase from the previous year. The online casino industry's rapid growth and potential are showcased by these figures, with the overall North American online gambling market, including casino gaming, projected to grow at a compound annual growth rate (CAGR) of 12.2% from 2025 to 2030.
It's worth noting that online casinos are fully legalized and regulated in nine U.S. states: New Jersey, Delaware, Pennsylvania, Michigan, Connecticut, West Virginia, Rhode Island, and the latest addition, Rhode Island, legalized in 2024. Residents and visitors (age 21+) in these states can play real-money online casino games, including slots, table games, and sometimes online poker, through state-licensed platforms.
As the industry continues to grow, it's clear that online casinos are becoming an increasingly significant part of the gaming landscape in the United States. With more states considering legalization and existing markets maturing, the future looks bright for this booming sector.
In the burgeoning online casino industry, sports betting and casino games, such as slots, have significantly contributed to the sector's growth. For instance, Delaware's BetRivers online casino doubled its gross revenue from slots, marking a 100% year-over-year increase. Furthermore, Pennsylvania, the leading state in online casino revenue, offers a wide variety of casino-games, including slots, on its state-licensed platforms.
