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Taking a Global look at online gambling - How will the market change in the USA

Knowing how much the global online gambling industry has grown over the past few years, we can say that, without a doubt, the future of the gambling industry is on the web. International casino operators invest more and more in online betting sites, and with the legalization of sports betting in the US, they are expected to set up shop on American soil, too.

The United States has never been particularly fond of online betting activities, and the fact that only four states within the country allow online gambling testifies to it. But this year’s overruling of PASPA promises to change the public perception regarding the online betting market. According to experts, most states are expected to legalize online gambling in the near future, and this will undoubtedly lead to a substantial growth of the US online betting industry.

In the following article, our experts take an in-depth look at the inception of the online betting industry in the US and its growth over the years; keep reading if you are interested.

Present state of the online gambling industry

Interestingly, the United States holds no specific laws regarding online betting activities. Still, most states have anti-gambling laws, which apply to both web-based and land-based betting.

Currently, four US states have specific legislation regarding online gambling: Delaware, New Jersey, Nevada, and Pennsylvania. The first state to authorize online gambling was Delaware – this happened in 2012. In 2013, online gambling was legalized in New Jersey and Nevada, with the former initially offering casino games, poker, and latter authorizing poker and sports betting. It should be noted that online sports betting is now legal in New Jersey.

Subsequently, Pennsylvania became the four state to legalize online gambling activities in 2017, which is expected to launch sometime in 2018. Still, online lottery is already available within the state. Online casinos which accept players from UK will need to change their terms and conditions.

Abolition of PASPA and its impact on the online betting industry

In May 2018, the US Supreme Court overruled a nearly 30-year-old law called the Professional and Amateur Sports Protection Act (PASPA). So, sportsbooks could for the first time set up shop in every state which welcomes sports betting activities (both land-based and online ones).

Following the Supreme Court decision, some states launched full-scale betting activities just a month after the abolition of PASPA, such as New Jersey and Delaware. Furthermore, five additional states have passed laws regarding sports betting and some of them are expected to set up shop for bookies in 2019. Essentially, experts predict that as much as 32 states will launch sports betting within the next five years.

While sports betting is likely to become widely available on land, the situation is not such online. To some experts, states will remain strictly against online sports betting. But others predict that 2019-2020 will be the year when the public will witness a substantial expansion of online sports betting within the US.

Whatever the case, the abolition of PASPA will undoubtedly result in a change in the view of gambling. As states take a more liberal view of gambling, they are likely to legalize online gambling activities, and that is when the industry will really start to grow.

What allows for a growth in the industry?

According to a 2016 report, US online gambling market will grow by a staggering 51% by 2020, growing from roughly $16 million in revenues in 2016 to over well $1 billion by 2020. The size of the industry was calculated using legal online casino revenues, sports betting, and online lottery activities. Further, the report focuses on some of the main reasons behind the growth of the online betting market, which are discussed below.

Putting the abolition of PASPA aside, there are three other factors which contribute to the growth of the online market in the US. Namely, these are the relaxed government regulations, the potential benefits for the US economy, and the expansion of online betting.

Emerging trends in the growing market

Naturally, as the market grows, it adopts an array of new technologies to attract and keep new players, some of which are briefed in the lines below.

Adoption of international credit and debit cards

As most states still do not allow players to wager on US sites, gamblers have to access foreign sites to gamble – that is where international credit and debit cards flourish. As online gaming is expected to become widely available in the next decade, international credit and debit cards will decrease in popularity.

Until online betting becomes widely available on US soil, however, the use of international credit and debit cards will increase.

Introduction of new market strategies

At present, leading casino operators utilize big data analysis in order to personalize players’ gambling experience. Thanks to big data analysis, operators can offer personalized loyalty cards. But that is not all – big data also allows them to customize advertisements, and even bonuses, too.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes

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