The online gambling space is full of surprises. From massive revenue numbers that dwarf traditional industries to strange state-by-state differences, iGaming operates in ways that might shock you. These facts show just how quickly this industry has grown and where it’s heading next.
Most people think they understand online gambling, but the real numbers tell a different story. The industry generates billions in revenue, creates thousands of jobs, and operates under complex regulations that vary wildly from state to state.
Here are the facts that industry insiders know but rarely discuss publicly..
First Things First: State Tax Revenue & Wild Disparities
But before we start, it’s worth pointing out that there are different approaches at the state level, and that’s where things get interesting. Tax revenue of commercial casinos in the state of Pennsylvania amounted to approximately 2.32 billion U.S. dollars that year. Pennsylvania actually beats Nevada in total tax revenue from casinos, despite Nevada’s reputation as the gambling capital.
But the tax structures create bizarre situations. State statutory sports betting tax rates range from 6.75 percent in Nevada and Iowa to 51 percent in New Hampshire, New York, and Rhode Island. Nevada keeps taxes low to encourage more gambling, while states like New York grab over half of every dollar in sports betting revenue. Esports Insider reviews Nevada picks and highlights how these different approaches create unique market opportunities, where operators use the favorable tax environment to compete for players with better welcome bonuses, free spins, and extensive game libraries.
And the statistics support this. The state taxes 3.5 percent on the first $50,000 in revenue, 4.5 percent of the next $84,000 and 6.75 percent on revenue of more than $134,000. Nevada’s progressive tax structure means small casinos pay almost nothing, while big operations face higher rates. This explains why so many small gambling operations choose Nevada as their base.
The revenue disparities show how much states are leaving on the table. A study found that expanding legal online casinos could produce annual revenue of more than $30 billion with tax revenue of $6.35 billion. States without legal online gambling are essentially giving away billions in tax revenue to neighboring states.
The Money Numbers Are Staggering
The United States stands as the world’s largest and most lucrative gambling market, with projected revenues set to reach $121.29 billion in 2025. The casinos and casino games segment is a cornerstone of this industry, projected to account for $63.17 billion of that total.
The market is positioned for robust and sustained growth, with projections showing an annual growth rate of 5.08% leading to a market volume of $147.88 billion by 2029. The value of the American player is particularly high, with the average revenue per user (ARPU) expected to be $594.13 in 2025, indicating a highly engaged customer base.
This value is driven by deep market penetration, which is expected to reach 58.8% in 2025. With a user base forecasted to grow to nearly 220 million people by 2029, the opportunity for brands lies in capturing a larger share of the most active and valuable gambling market in the world.
Player Demographics Defy Stereotypes
Online sports betting is the most popular form of online gambling in the United States. 10% of U.S. adults reported participating in it (2024). That’s over 25 million American adults betting on sports online. The gender gap is significant too: The gender gap in sports betting amounts to a 15% difference between men and women.
But here’s the surprising part: Gambling is very popular worldwide: a recent study carried out across 44 countries revealed that 56% of those surveyed have gambled at least once in the past 12 months. More than half of all adults globally gambled in some form last year. That makes gambling more common than many activities we consider mainstream.
The global player count keeps climbing. The number of global iGaming enthusiasts is expected to reach a whopping 593 million in 2024. To put that in perspective, that’s nearly double the entire population of the United States playing online casino games or sports betting.
The Future Looks Even Bigger
In-person wagering accounted for 85% of gross gaming revenue in 2024 compared to 15% from online sources. This might seem like online gambling is small, but it’s actually the growth story. Online gambling was almost nonexistent five years ago, and now it represents 15% of all gambling revenue.
The American Gaming Association tracks these trends closely, and their data shows online gambling growing faster than anyone predicted. States that don’t offer legal online gambling are watching billions in potential tax revenue flow to neighboring states that do.
Final thoughts
These facts reveal an industry that’s growing faster and generating more money than most people realize. From Nevada’s unique casino-backed approach to Pennsylvania’s massive tax revenues, each state has found different ways to benefit from iGaming. The numbers suggest this growth will continue as more states legalize online gambling and existing markets mature. The question isn’t whether iGaming will keep growing – it’s how big it can get.
