The iGaming market in the US is poised for huge growth in the near to medium-term, with this projected to grow from $74.17 billion in 2021 to a whopping $158.20 billion by the end of 2028.
This represents a CAGR of 11.4% during the forecast period, while the expected GGY for online gambling stateside is likely to double over the course of the reporting period.
This is despite a relatively complex set of regulatory stipulations in the US, as America’s laws are different in each state. But how exactly do the regulations stateside compare with other English speaking markets in the world? Let’s find out!
The Lack of a Central Point of Control
If we look at prominent English-speaking markets such as the UK, Australia and New Zealand, we see that each one is governed by an omni-potent and central point of control.
More specifically, the UK Gambling Commission, the Australian Communications and Media Authority and the New Zealand Gambling Commission comprehensively regulate iGaming in their relevant jurisdictions, while single bodies of legislation also exist to help license and oversee operators.
Conversely, iGaming laws pertaining to online casino gameplay and sports betting are determined at state level in North America, meaning that local authorities have the autonomy to legalise and regulate specific verticals while monetising them for tax purposes.
Interestingly, the last main federal law pertaining to gambling in the US (namely the PAPSA legislation of 1992) was struck down by the Supreme Court in 2018. This had previously prohibited sports betting at a national level, and more than 20 US states have since legalised this practice fully.
The Prominence of Gambling Affiliates
Given that most US states have only moved to legalise sports betting since the decision to reverse the PAPSA legislation a little over three years ago, this burgeoning market is still in its infancy stateside.
This also means that the market for iGaming affiliates remains relatively underdeveloped for now, especially when you consider the size of the North American market and the fact that the average punter loses just under $400 per annum through wagering.
Gambling affiliates operate by promoting selected gambling services and platforms, earning a fixed rate of commission when their customers click on a relevant link and open an account.
The market for gambling affiliates remains huge in countries such as the UK and New Zealand, from large-scale programs that apply huge commissions to independent entities such as Online Casino New Zealand (which also works as a reliable comparison site and serves as an affiliate for some of the leading online casinos in New Zealand).
However, operators in the US may be about to begin closing this gap, especially as brands continue to engage in high-profile mergers and acquisitions with UK firms.
Caesars Entertainment, Inc. recently acquired the iconic William Hill PLC brand for approximately $4 billion, for example, offering them access to the UK firm’s proprietary technology, intellectual property and cutting-edge affiliate strategies.
The Approach to Responsible Gambling
When the UK Gambling Commission announced its core strategic objectives through 2021, at the heart of this was its commitment to safeguarding vulnerable players on these shores.
Make no mistake; responsible gambling remains a huge priority for mature markets such as the UK and Australia, whereas it’s a concept that’s still in its infancy on the other side of the Atlantic.
Once again, this is a key reason why US brands are looking to strategically partner with UK operators, with the latter having invested huge amounts of cash in developing cutting-edge responsible gambling technology.
This includes William Hill, who previously procured the independent Mr. Green brand that had developed its own proprietary responsible gambling tool. This enabled players to monitor their activity in detail and measure this against insights from the operator, in addition to affording them direct controls over deposit limits and the time spent wagering online.
We definitely expect the US to make further strides in this respect in the years ahead, particularly as the not-for-profit Entain Foundation recently launched its new responsible gambling app called “Gamble Responsibly America”.
This app is the first of its kind in the US, and may well emerge as a trail-blazer for similar entities to follow!