iGaming and Online Sports Betting Markets Poised for Significant Growth in 2025
The US iGaming and online sports betting markets are projected to experience substantial growth, with combined gross revenue potentially reaching $26.8 billion in 2025. This growth trajectory is expected to continue, with projections indicating the industry could surpass $41 billion by 2028, according to Vixio Regulatory Intelligence.

Vixio’s analysis highlights that the US internet sports wagering segment is on track to generate $17.2 billion in gross revenue this year. This is in contrast to base and bull case estimates of $24.8 billion to $29 billion by 2028. Currently, a significant number of states have embraced mobile sports wagering, with 31 states offering this form of betting. An additional eight states permit such betting at land-based casinos. Notably, Missouri is set to join the mobile betting landscape later this year.
Regulatory Focus and Market Expansion
Following the 2018 Supreme Court ruling on PASPA, the initial focus was on state-level legalization of mobile sports betting. In recent years, however, regulatory and tax considerations have gained prominence. Several states with budget deficits are exploring increased gaming taxes to bolster their financial resources.
James Kilsby, chief analyst at Vixio, suggests that policy focus for 2025 will likely center on regulatory restrictions at both state and federal levels. He anticipates tax increases to be a key theme, with numerous governors and lawmakers already proposing higher tax rates early in 2025. For example, Illinois implemented a graduated tax scheme for sports wagering last year, where larger operators face increased rates. Maryland and Ohio are currently considering higher sports wagering taxes this year.
States to Watch for Sports Wagering Expansion
Vixio identifies Alabama, California, Georgia, Minnesota, Mississippi, and Texas as states to watch for potential additions to the sports wagering market in 2025. While California, Texas, and Georgia are considered highly desirable markets, they appear unlikely to legalize sports betting this year. Georgia has a history of legislative setbacks in this area.
In terms of iGaming, it is currently legal in only seven US states: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. Although six states considered related legislation last year, none of these efforts resulted in approvals. Vixio anticipates a similarly challenging landscape for iGaming expansion advocates in 2025, with up to ten states potentially considering legislation, but few are likely to approve a bill in the near term.
Concerns regarding the potential negative impact on brick-and-mortar casinos and opposition from labor groups remain significant hurdles to broader iGaming adoption, according to Vixio.
Market Projections and Competitive Landscape
Vixio’s base case projection forecasts gross gaming revenue (GGR) for the US online sports wagering segment to reach nearly $25 billion by 2028. Under this scenario, New York is projected to remain the largest market, with Florida moving into the second position. The firm’s more optimistic ‘bull case’ scenario envisions $29 billion in internet sports betting revenue by 2028, contingent on the approval of sports wagering in Georgia, Mississippi, Oklahoma, Texas, and Washington State. While Washington State currently allows sports betting, it is limited to tribal casinos.
A new competitive element emerging in the market is the rise of sports event contracts offered by companies like Crypto.com and Kalshi. These platforms, considered derivatives rather than traditional sports bets, are available in all 50 states. For instance, Crypto.com recently launched its platform allowing users to trade predictions for events such as the 2025 Super Bowl. Although not licensed by state gaming authorities, Crypto.com asserts its offering falls under the regulatory purview of the U.S. federal government’s Commodity Futures Trading Commission (CFTC).
Conclusion
The US iGaming and online sports betting markets are set for continued expansion in 2025, driven by increasing state-level legalization and evolving regulatory landscapes. While challenges remain, particularly concerning tax implications and competition from new market entrants like event trading platforms, the overall outlook for growth remains positive. The industry is expected to surpass $41 billion in combined gross revenue by 2028, with key markets like New York and Florida leading the way.
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