Hot Features
Premium
Trade like a pro: Leverage real-time discussions and market-moving ideas to outperform.
Meta: Online gambling in the USA was only properly introduced in 2010, but its market cap has grown significantly since then. Find out why by reading this overview.
Market capitalization (also known as market cap) is the total value of a company or industry’s shares in the stock. It’s an indicator of how much the business is worth, how one organization is doing against a competitor, and what it’s future on the market is looking like. In the USA, online gambling has seen significant growth in its market cap value over the years. This growth has occurred in several stages and for different reasons, so we’d like to take some time to discuss it in our article today. Keep reading if you’d like to know why online gambling has grown in the USA, and what its market cap was worth in the past, what it’s like now, and what its potential is for the future.
The Beginning
The very first online casinos were available by 1994 to US citizens. Though the providers were from offshore, like the Isle of Man and Antigua, they welcomed American players. From 1996-1998, the number of online gambling websites started to grow exponentially, with reports citing the industry’s revenue was roughly $800 million. After this, the US Senate decided to introduce the Internet Gambling Prohibition Act, which brought this rapid market cap growth to a standstill, as all online gambling became illegal in the USA. Furthermore, the search engines Google and Yahoo disallowed advertising for online casinos.
Enduring Popularity
Despite being ruled as unlawful, online gambling was still popular in the USA from 2004 to 2008. Offshore online casinos found ways to provide US customers with their services as the global market continued to grow. Its worldwide revenue was roughly $21 billion, but America didn’t yet have a big share of this total. That was until the US government realized if you can’t beat them, join them.
First Legalisation
Online gambling was first legalized in the USA in 2010 when the New Jersey state Senate passed a bill allowing the specific forms of internet gambling to occur. This meant certain companies that were certified by the state were able to take players’ bets for things like poker games, online casinos and virtual slot machines. However, sports betting was excluded from this initial bill. Bearing in mind that Americans mostly enjoy staking bets on their favorite sports games and teams, this was a big hit for the online gambling industry. The New Jersey state bill was also largely opposed when first introduced, with two-thirds of voters being against the legalization of online gambling. As such, the online gambling industry was only worth roughly 34 million from 2009 to 2010.
Growing Accessibility
US states started to gradually legalize online gambling. Therefore, online gambling is currently legal in New Jersey, Colorado, Michigan, Pennsylvania, West Virginia and Indiana. However, it’s legalization is also being considered in California, New York and Massachusetts, plus Mexico. Each of the states regulates online betting indifferently, but mainly there is a focus on safe and responsible gambling. With its increased outreach and accessibility, the market capitalization of the industry started to grow, too. As such, more varieties of internet gambling were allowed, such as online lotteries, horse racing and fantasy sports. Listed in mobilecasinoparty.com, you can now find real money US online casinos that offer a platform for these activities.
Image Source: Pixabay.com.
Exponential Increase
Online gambling in the USA started to grow like a snowball. Initially, its market size wasn’t particularly significant, but – with further legalization – by 2016, the industry was worth 6.5 billion. This number jumped again to 7.2 billion in 2017. We’ve seen a gradual and consistent increase since then. Therefore, by 2027, the market cap is looking to increase by two or even three-fold in North America. It’s become an incredibly prosperous industry which investors are now keeping a watchful eye on.
Online Vs Land-Based
Ironically, one of the biggest industry competitors in the US for online gambling is land-based gambling in the USA. With famous and popular attractions like Las Vegas having completely legal casinos, it’s no wonder internet gambling initially struggled to find its feet. This being said, land-based gambling also has its limitations. For starters, its accessibility is limited, as traveling is required. Moreover, only certain states and areas (such as Indian reservations) allow gambling establishments on the land. Meanwhile, online gambling is much more easily accessed. If the person lives within a state where it’s legal, they can play on either their computer desktop or mobile phone. In a generation that likes convenience and playing things wherever and wherever internet/remote gambling has a competitive edge. This is one of the main reasons behind the industry’s market capitalization in North America in recent years.
What the Future Holds
As we mentioned before, many states in the USA are now considering legalizing online gambling. it’s fair to assume that market cap in North America will continue to grow as more people have greater access. Furthermore, with new and different types of online gambling being introduced, more consumers are likely to find something in the industry which catches their eye. Now online gambling has been legalized, and proper regulations are in place; this also means people will feel safer depositing their money with online casinos. This will also increase awareness of problem gambling and help with breaking stigma. Finally, online sports betting is looking to be on the rise. Most activities related to it are prohibited in the United States, but there is increasing pressure on the Senate to change its current stance on the topic. After all, sports are a massive part of the culture in North America. Furthermore, given the current popularity of fantasy sports betting, the market cap of online gambling is certain to increase with the complete legalization of online sports betting.
Now you’ve read our overview of online gambling in the USA, what do you think is next for the industry? We’re intrigued to see how greater accessibility, advancements in technology and more variety in US iGaming will increase its market capitalization.
