iGaming in the USA: The Evolution of Gambling

iGaming in the USA: The Evolution of Gambling

Publication date: 3 December 2025

Today, the American iGaming market is perceived as one of the most technologically advanced and dynamic markets, offering excellent opportunities for affiliate promotion. However, the evolution of gambling in the US is a story that begins with ritual practices and strict prohibitions and continues (but does not end!) with a multibillion-dollar online industry. This path has been long: marked by legal shifts, economic crises, mafia intervention, tribal autonomy, and, of course, digital revolutions. On 3S.INFO we have prepared an engaging story about gambling and betting in the USA: from indigenous traditions to one of the most effective digital industries in iGaming.

The Origins of iGaming in the USA: From Indigenous Traditions to Colonial Gambling

Before the arrival of Europeans, the indigenous peoples of North America had their own forms of games of chance and competitions:

  • Games using dice made from animal bones, fruit pits, or shells;
  • Games of chance as part of ritual practices;
  • Trade involving elements of betting between tribes.

These games often held spiritual and social significance beyond mere entertainment. They were not a form of commercial amusement but rather an integral part of a broader worldview.

With the onset of colonization and European settlers in the 17th century, the situation changed dramatically. Lotteries and horse racing bets became tools of state economy: they funded public projects, infrastructure (road construction), even universities. Card games and betting quickly took root in ports and taverns. Authorities periodically attempted to impose restrictions, but gambling remained an integral part of daily life.

The 19th Century: Rise and Fall of Gambling Freedom

In the 19th century, religious and moral movements (primarily Protestant) intensified in the United States, leading to stricter attitudes towards gambling. Many states progressively banned lotteries and casinos, driving gambling underground.

The era of gold rushes and Western expansion made gambling almost symbolic of the American Dream. Mining towns and frontier settlements flourished with saloons where poker, dice, and roulette were played.

However, eastern states viewed gambling as a social threat, especially after corruption scandals surrounding lotteries. By the beginning of the 20th century, most forms of gambling were under complete prohibition.

Early 20th Century: Underground Scene, Mafia Influence, and Birth of Las Vegas

Complete bans did not stop the industry. They merely transformed its format. Between 1919 and 1933, during Prohibition, there was almost total ban on gambling and betting in the United States. Casinos went underground, and organized crime quickly found them to be a source of stable income.

Only the Great Depression (from 1929 to 1939) forced authorities to seek new financial solutions: Nevada legalized gambling in 1931, marking the birthplace of future Las Vegas.

From the 1940s onwards, the mafia actively invested in casinos, but the government gradually regained control through new regulators and financial checks.

Second Wave of Growth: Atlantic City and Tribal Casinos

In the second half of the 20th century, the market began expanding again. New Jersey legalized casinos in Atlantic City in 1978, creating the country’s second gaming capital. But perhaps more significant was the emergence of tribal operators in 1988.

What are “Tribal Operators”? In 1988, the U.S. passed the Indian Gaming Regulatory Act, which allowed tribes to open casinos on their lands. Tribal casinos rapidly grew into a self-sufficient sector comparable in scale to commercial ones. For detailed information on the organization of tribal casinos in the U.S., read our article on 3S.INFO on December 4, 2025. 

Internet, Digital Revolution, and the Emergence of iGaming in the USA

  • 1994: the emergence of the first online casinos (based outside the USA). The advent of the internet opened a new horizon. The first offshore operators began accepting players from the USA in the 1990s, but legal uncertainty led to a tightening of regulations. 
  • In 2006, the UIGEA law restricted financial transactions related to online betting, which effectively halted the legal growth of the market.
  • 2010–2018: Local digitization and anticipation of change.
  • 2011: The Department of Justice revised its stance, allowing individual states to legalize online gambling. 
  • Several states immediately attempted to develop online poker and online casinos. In 2013, Nevada, New Jersey, and Delaware became the first to legalize online betting and establish the first legal ecosystems. However, these were more like “isolated islands” than a full-fledged market. 
  • The decisive moment came in 2018: The Supreme Court overturned the federal ban on sports betting, transferring regulation to the states.

Turning Point: Repeal of PASPA and a New Era for iGaming

In 2018, the Supreme Court overturned the federal ban on sports betting (PASPA), transferring regulation to individual states. This decision completely transformed the industry.

Gambling and betting in the US entered a period of rapid growth:

  • Fragmented regulation: Each state independently decides on legalization. Main areas: online poker, casino games, sports betting.
  • Operators began transitioning to the mobile segment. 
  • Competition emerged between major ecosystems — DraftKings, FanDuel, BetMGM, Caesars.
  • Technological innovation: Parallel development of mobile apps, live casino and live dealer technology, virtual reality, personalized recommendations, fast games, and multi-platform compatibility. 
  • Social and responsible gaming: self-control tools, deposit limits.

Modern Market: Digitization, Competition, and Regulatory Maturity

Today, the gambling industry in the US is a complex structure where tribal and commercial casinos coexist with bookmaking companies, online platforms, and regulated iGaming operators. The growth of the mobile segment has been the main driver in recent years. States are increasingly implementing responsible gaming tools, while businesses adopt retention and omnichannel technologies.

Key trends in the US iGaming development:

  • Mobile services become the primary channel;
  • Online casinos grow faster than offline ones;
  • Competition among operators intensifies;
  • State budgets actively participate in tax revenue distribution.

What Technological Innovations Accelerated the Development of iGaming? 

Technological innovations that have accelerated the development of iGaming encompass several key directions that fundamentally changed the industry and landscape of gambling.

1 of 5
  • The first important innovation was mobile technology and smartphones. The mobile revolution enabled players to place bets and play casino games anywhere, making iGaming an everyday entertainment option and significantly increasing traffic. The introduction of HTML5 allowed for the creation of games with improved graphics and user-friendly interfaces for touchscreens, enhancing the user experience and boosting engagement.

    Read more
  • The second significant achievement was the widespread adoption of live streaming. Live game broadcasts and real-time betting added excitement and realism, helping attract and retain users by bringing online gambling closer to the experience of land-based casinos.

    Read more
  • The third area of innovation was artificial intelligence (AI) and big data. AI is used for personalizing games and offers, combating fraud, automating customer service, and improving marketing efforts. These technologies enhance operator efficiency and player comfort.

    Read more
  • Fourthly, blockchain integration and cryptocurrencies have gained prominence. Blockchain ensures transparency and security in transactions, while cryptocurrencies offer fast and low-cost payments. Some iGaming projects are entirely built on decentralized technologies, opening new possibilities in gameplay and financial operations.

    Read more
  • Additionally, operators are introducing multiplayer features, gamification, and social interaction elements, which add a new level of engagement. There is ongoing development of white-label solutions and modular platforms with API support, simplifying the launch and scaling of iGaming businesses.

    Read more

Thus, the key technological drivers of iGaming growth are mobility, HTML5, live-streaming, artificial intelligence, blockchain, cryptocurrencies, multiplayer mechanics, and flexible platform solutions. These innovations have made iGaming accessible, interactive, and efficient business with enormous potential for further development.

Currently, the United States is experiencing a peak stage of digital transformation in gambling, as the market becomes more mature, technologically advanced, and competitive. For more information on the development of gambling in the USA, see the updated overview “USA iGaming Overview: A Complete Guide to the Most Lucrative Traffic GEOs” on December 8, 2025.

Prospects for Betting and Gambling Development in the USA

From 2015 to 2025, revenues from online gambling and sports betting in the U.S. grew by approximately 250%, driven by changes in legislation, mobile technologies, and partnerships between operators and leagues/clubs. The pandemic of 2020 further accelerated the migration of players from land-based casinos to online formats, making the digital segment not just an addition but one of the primary drivers of the industry. 

What Lies Ahead for US Online Gambling and Betting in the Future? 

  • Expansion of legalization into new states.
  • Integration of blockchain and cryptocurrency technologies.
  • Development of immersive gaming experiences using VR/AR.
  • Strengthening measures to protect vulnerable players and prevent addiction.
  • Evolution of affiliate marketing, promoting gambling and betting through reliable affiliate programs and CPA networks.

The evolution of gambling in the U.S. reflects a complex interplay of cultural traditions, economic interests, and social policies, where digital transformation continues to reshape the industry’s landscape. 

Today, the U.S. is one of the most technologically advanced and rapidly growing iGaming markets. Large casino brands are launching their own online platforms and apps, extensively utilizing big data, live streaming, real-time betting, as well as responsible gaming tools and advanced compliance measures. At the same time, the foundation of the industry still relies on its cultural roots and multilayered history — from Native American games and colonial lotteries to Las Vegas and modern mobile apps.

FAQ

How did the history of gambling begin in the United States?

Gambling originated from the traditions of indigenous peoples, where bone games and ritual competitions had spiritual and social significance. After European settlers arrived, gambling became a tool for funding public projects and infrastructure, spreading lotteries, card games, and horse racing bets.

Why were games of chance banned in the 19th century?

In the 19th century, religious and moral movements, particularly Protestantism, led to stricter prohibitions on gambling. Despite the flourishing of gambling establishments in the West, Eastern states viewed gambling as a social threat. By the beginning of the 20th century, most forms of gambling came under complete prohibition.

How did Las Vegas become the gambling capital?

Following the Great Depression and a temporary ban on gambling, organized crime began investing in underground casinos. In 1931, Nevada legalized gambling, marking the beginning of Las Vegas’s development as a casino and entertainment hub. In subsequent decades, the state tightened control through regulatory bodies.

What are tribal casinos and why are they important?

In 1988, a law was passed allowing Native American tribes to establish casinos on their lands. This created an independent gambling sector, comparable in scale to the commercial market, providing tribes with a significant source of income and economic autonomy.

What technological innovations have contributed to the development of iGaming?

Key innovations include mobile technologies, HTML5 for improved graphics and user interfaces, mass live streaming, artificial intelligence and big data for personalization and security, blockchain and cryptocurrencies for transparent and fast payments, as well as gamification and multiplayer features, which simplify business launch and scaling.

Author with 20 years of experience. I cover everything about iGaming, traffic sources, regulation, and tools—clearly, in detail, and in...
48 articles
Author profile
Did you like the article?

Share it with your friends via favorite social media

Read more

For participants and organizers of iGaming conferences, stable and fast internet is not just a …

The betting market in Latin America is developing at a rapid pace and becoming one …

3S.INFO has compiled a selection of the best books on betting. This useful and engaging …

iGaming in Asia is rapidly evolving thanks to technological innovations, mobile platforms, live betting, and …

How did experience and many years of development in the gaming and gambling industry contribute …

Which bookmakers are the best in the world? Choosing a bookmaker should be based on …

An affiliate license is an official document or registration confirming the right of a partner …

Which betting companies are included in the ranking of the best bookmakers in Russia? The …

In media buying, a tracker (Traffic Distribution System, TDS) is a fundamental component of the …