US iGaming Market 2026

Last Updated: 23 december 2025

The United States is simultaneously the most mature and still rapidly growing gambling market globally. US iGaming is a high-stakes game with significant budgets where success depends on strict compliance with each state’s laws, deep product localization and marketing efforts, innovative acquisition channels, and effective player retention programs amidst high customer acquisition costs (CPA). This market holds great promise but demands professional expertise and long-term investments.  3S.INFO has compiled all information about promoting American gambling and betting. It’s a complex, highly competitive and strictly regulated activity that requires a profound understanding of the legal landscape and local specifics. 

This content serves informational purposes only. We do not endorse violations of local laws or service policies. Please familiarize yourself with local regulations and comply accordingly!

According to the American Gaming Association (AGA), total commercial gaming revenue (land-based casinos, online casinos, and sports betting) reached an unprecedented $72.04 billion in 2024, while direct tax revenues amounted to $15.91 billion. Of this, $8.41 billion came from iGaming (online casinos) across just seven states, and sports betting generated another $13.78 billion in revenue with nearly $150 billion in turnover. 

For media buyers, this means one simple thing: Americans are already accustomed to online gambling, they are willing to pay, and they do so primarily through licensed operators above board.

Why Is the USA a Trendy iGaming Market? 

• Solvent Audience. The population of the USA stands at approximately 340–341 million people, making it the third largest country by population worldwide. Average bet sizes and deposits are significantly higher compared to most other GEOs.
• Near Total Digitalization. Internet penetration is close to 97%, with over 90% of adults owning smartphones. In this context, iGaming is inherently mobile-first.
• Legal Framework Exists and Functions. Following the repeal of PASPA in 2018 (Murphy v. NCAA case), individual states gained the authority to decide their own policies regarding betting and online casinos, sparking a wave of legalizations.
• Online casinos are currently permitted only in seven states, whereas betting is allowed in many dozens. Thus, the market is both enormous and not fully saturated. There are states with intense competition (New Jersey, Pennsylvania, Michigan), as well as new or less competitive jurisdictions.

Why Is US iGaming Interesting for Affiliates and Operators?

• High Stakes and LTV. According to research, millennials aged 25–40 account for more than 50% of online gambling revenue in the USA, actively engaging in live betting, cross-games such as DFS, fantasy games, casino, and poker.
• Gambling Normalization. Recent surveys conducted by the AGA indicate that 57% of U.S. adults participated in some form of legalized gambling within the past year, while 53% (approximately 134 million individuals) visited casinos. This signifies a vast audience with prior experience in gambling who are unafraid to make deposits.
• Advanced Affiliate Infrastructure. Almost all major brands offer flexible affiliate programs operating either directly or via CPA networks. CPAs and hybrid models are comparable to top European GEOs, yet due to larger deposits, overall margins tend to be even higher.
• Diverse Verticals for Various Legal Frameworks. In some places, you can send traffic to full-fledged online casinos; in others, only to sports betting; and in some states, only to DFS, lotteries, social casino, and sweepstakes. This offers variability in strategy.

How Are Gambling Activities Regulated in the USA?

There is no single federal law in the USA that permits or prohibits all forms of online gambling. Instead, several basic federal acts exist:

• Federal Wire Act, 1961. Prohibits accepting sports bets via interstate communication channels (telecom, internet) without proper licensing; originally aimed against mafia bookmakers.
• Indian Gaming Regulatory Act, 1988 (IGRA). A framework for gambling operations on Native American lands, leading to hundreds of tribal casinos. Tribal operators have been influencing regional economies and setting standards for land-based casinos for decades. However, the shift to digital formats has changed the rules: traditional advantages (land ownership, sovereignty, exclusivity) function differently in the online realm and do not always guarantee automatic leadership. On 3S.INFO, there’s a detailed analysis: how will tribal casinos impact iGaming in the USA?
• Unlawful Internet Gambling Enforcement Act (UIGEA), 2006. It prohibits operators from accepting payments for illegal online gambling and obliges banks and payment systems to block suspicious transactions.
• PASPA, 1992 (repealed in 2018). Previously almost completely banned sports betting until the Supreme Court declared it unconstitutional in 2018 (Murphy v. NCAA case). 

The evolution of the gambling industry in the USA traces its roots back to ancient rituals and harsh restrictions, culminating in the creation of a multibillion-dollar online industry. On 3S.INFO, we present an enthralling exploration into the history of gambling and betting in America: from indigenous traditions to the formation of iGaming, one of the world’s most successful digital industries.

After the repeal of PASPA, each state has the right to independently:

• permit or ban sports betting and online casinos;
• determine which verticals are available (sports/casino/poker/lottery);
• set taxes and licensing requirements.

Key takeaway for media buyers: The USA isn’t a single GEO, it’s actually 50+ separate mini-markets, each with its unique legal framework, taxation system, and level of competition.

Gambling & Betting Regulation Across Different US States

Regulatory Map: Legal Status of Betting and Gambling Across the USA

For a complete list covering all 50 states, it’s best to use the interactive map provided by the American Gaming Association. This simplified table focuses specifically on the needs of media buyers.

The Status of Online Gambling and Betting in US States (2025)

How to Obtain a Gambling License in the USA? 

Online casinos (iGaming) are currently legal in seven US states: New Jersey, Pennsylvania, Michigan, Delaware, West Virginia, Connecticut, Rhode Island, plus Nevada, which only allows online poker.

In America, you can obtain licenses for various types of gambling activities:   

• iGaming / Internet gaming / Interactive gaming: online slots, table games, live casino, sometimes poker.  
• Online sports wagering / Mobile sports betting: sports betting via website/mobile app.  
• Poker-only: a distinct category product (Nevada, some states).  
• B2B Licenses: platform providers, game developers, payment solutions.

Who Can Obtain a License?   

• Basic rights belong to land-based casinos and/or tribal operators.
• An online brand (such as BetMGM, DraftKings, FanDuel, etc.) operates as a “skin”/affiliate under the umbrella of a land-based license.
• Certain states allow Qualified Gaming Entities (QGE) — external operators who can access the market under special conditions (for example, Pennsylvania).

According to industry reviews and reports from AGA and Big Data Analytics News, large international/national brands operate under license in the USA, including BetMGM, DraftKings, FanDuel, Caesars, BetRivers, SugarHouse, Hard Rock, WynnBET, Bally’s, and Fanatics. These recognizable brands (even naming stadiums) boast substantial advertising budgets, sophisticated CRM systems, and cross-selling between sports and casino products. However, websites implement stringent KYC/AML procedures, potentially hindering conversion if players’ expectations are misaligned.

Besides major brands, every state also features legally established local casino operators, particularly among tribal entities. For affiliates, these local operators often lack widespread recognition but offer greater flexibility in terms and conditions. They may also provide region-specific promotions (e.g., tie-ins with local sports teams).

• Want to immerse yourself in the atmosphere of tribal casinos? Exploring the history and contemporary reality through fictional and documentary films about reservation casinos in the USA is a way to gain a deep understanding of key social, economic, and legal realities of American society.

How Much Tax Do Gambling Operators Pay in the USA?

Nearly every state has its own tax on GGR for operators. 

• New Jersey (Online Casino): Effective tax rate of 17.5% GGR (15% state + 2.5% local community levy).
• New Jersey (Online Sports): Effective tax rate of approximately 14.25%. There is currently a bill under discussion to raise it to 30% for both online casino and sports betting.
• Michigan (iGaming): Progressive tax of 20-28% GGR, depending on the operator’s revenue.
• Delaware (iGaming): Effective tax rate for online video lottery is approximately 57% GGR.
• Rhode Island: 61% on slots and 15% on table games in online casinos.
• West Virginia: iGaming is taxed at a rate of 15% GGR, sports betting at 10% GGR plus a federal excise tax of 0.25% of handle.

Most iGaming states balance within the range of 15-30%, but there are exceptions with extremely high rates (like DE, RI, PA for slots), which significantly cuts profit margins but creates barriers to entry.

What Taxes Do Players Pay on Winnings in the USA?   

Federal Level

• Gambling winnings are considered taxable income according to federal income tax rates. 
• With large payouts, operators issue Form W-2G and may withhold tax at source (typically 24%).  

State Level

• Some states, like New Jersey, treat gambling winnings as ordinary income subject to taxation. 
• Others, such as West Virginia, do not impose a separate tax on winnings, but players must declare them as income on their federal returns.

From an affiliate perspective, this is crucial mainly in terms of communication. Americans understand that winnings are “taxable,” but incorrectly promising “tax-free” or similar claims should be avoided.

According to AGA data, commercial gambling (including iGaming and sports) contributed $15.91 billion in direct taxes to states and municipalities in 2024 alone, representing an 8.5% increase from the previous year. This serves as a compelling argument for further legalization of online formats, as states witness tangible cash flow benefits.

Who Blocks Illegal Casino Websites and Bookmakers and Ensures Compliance with Laws?  

• State regulators;  
• State Attorney Generals (AGs): They can file lawsuits, initiate payment blocks, and domain blocking under UIGEA provisions;  
• Federal authorities (Department of Justice, FBI): Handling major cases involving money laundering and fraud.

In the USA, there is no single, all-encompassing censor like Roskomnadzor with a blacklist of all domains. However, there are its own mechanisms for putting pressure on illegal operators:

• Payment Blocking via UIGEA: Banks and payment systems are required to filter “restricted transactions” — payments to illegal online gambling. This is done using MCC codes, BIN tables, and internal lists.
• Lawsuits and Criminal Cases: The Department of Justice and state prosecutors can file civil lawsuits against operators, seek domain and asset seizures, as well as hold owners and payment affiliates accountable.
• Working with ISPs and Hosting Providers: In cases of particularly egregious violations, a court can order an internet service provider to block access to specific domains or remove links/advertisements.
• Sanctions on Advertising and Promotions: Media outlets, influencers, and even sports clubs can be fined for promoting offshore, unlicensed brands.
• Self-Exclusion and Exclusion Lists: Authorities manage voluntary and mandatory exclusion lists to promote responsible gambling, indirectly pressuring risky operators.

For media buyers, this implies that collaborating with offshore companies targeting the US market carries increased risks. Banks may decline payments, cards might be rejected, and operators could simply lose access to payment infrastructure.

Prospects for the US iGaming Market Development Up to 2028

• Expansion of iGaming States List. Currently, 7 states have legalized online casinos, plus Nevada offering online poker. Legislators (through the National Council of Legislators from Gaming States) have prepared a model bill for new states, recommending a tax rate of 15-25% and prohibiting credit card deposits.
• Increase in Tax Rates in Existing Jurisdictions. For instance, New Jersey is actively considering raising online gambling taxes up to 30%.
• Stricter Advertising Regulations. Individual states such as Michigan and New York are already considering limitations on aggressive marketing, bonuses, and advertisements near sporting events.
• Convergence of Rules for Sports/Casino/Fantasy Games. Regulators increasingly view DFS, sweepstakes casinos, and prediction markets as carrying similar risks and discuss unified regulations.

States are just entering iGaming, competition is lower, and brands need affiliates who can deliver quality traffic with an understanding of local laws.

iGaming in the USA: General Characteristics of the Market and Audience

The United States of America (USA) is a federal republic located in North America, ranking among the largest and most influential countries globally. Population: approximately 335 million inhabitants (third place worldwide).

• Capital: Washington D.C.; Major cities include New York City, Los Angeles, Chicago, Miami, Houston. Over 83% of the population resides in urban areas.  
• Language: De facto English (no official language federally), but a sizable Spanish-speaking segment exists (consider this for localization: EN + ES).  
• Currency: US Dollar (USD).

Internet users: 331.1 million (97.1% of the population) as of early 2024. Smartphones are owned by approximately 91% of adults; the USA ranks among the world’s most smartphone-saturated nations, with penetration exceeding 80% of the population. Planning mobile-first creatives, in-app formats, native ads for sports apps and social media is advisable since the audience is technologically ready.

Key Traits of the Target Audience for the US iGaming 

Who Gambles in the USA?

Based on recent data from AGA and other studies:  

• 57-62% of adults participated in some form of gambling (lotteries, casinos, online games, betting) within the last year.  
• 53% of adults (about 134 million people) visited a casino at least once during the year.  
• The average age of casino visitors is around 42 years old, showing a trend toward younger demographics since pre-pandemic times.

According to Mordor Intelligence and independent research findings:  

• Millennials (aged 25–40) generate over 52% of online gambling revenue in the USA.  
• Gen Z (ages 21–25) shows the fastest growth rate (double-digit annual increases in active user base).  
• Gender distribution: Active online gamers aren’t exclusively male. Men dominate (~60/40 split), though women represent nearly half of participants in certain verticals (lotteries, social casino).
• Income: The lion’s share of online players are from the middle and upper-middle class; a significant pool consists of white-collar, tech, and finance workers, plus a blue-collar audience for mass-appeal sports.

How to Utilize This Information in Affiliate Marketing 

• You can target both young sports enthusiasts and older casual players interested in lotteries, slots, or bingo-style games.
• Language and cultural code matter greatly: the English-speaking middle class versus the Spanish-speaking audience demand different creatives, messages, and offers.

Popular Online Casino Games in the United States 

Specific slot statistics vary by state and operator. As a reference example, here is analytics data for New Jersey and Pennsylvania:

• Top Slots: Divine Fortune, Starburst, 88 Fortunes, Cleopatra, Wheel of Fortune, Lightning Roulette/Lightning games — classics from NetEnt/IGT/SG Digital.
• Verticals: Slots contribute up to 70–80% of online casino GGR. Table games (roulette, blackjack, baccarat) + live casino make up the rest. Poker is a niche segment, except in certain markets like Nevada and New Jersey.

You can confidently use hit slots and live dealer formats in your texts and banners, but avoid overemphasizing the branding of specific providers without their consent.

What Sports Do Americans Bet on? 

According to data from S&P Global, the AGA and industry research:

• The most popular sport in the USA is American football, with about 43–50% of adults watching National Football League (NFL) games.
• In betting, the top sport is the NFL: estimates suggest that the NFL and college football account for the largest share of betting turnover (up to ~40% during the season).
• Following in popularity: basketball (National Basketball Association / NBA), baseball (Major League Baseball / MLB), college games (National Collegiate Athletic Association / NCAA), hockey, tennis, soccer, UFC/fights.
• Special excitement surrounds the Super Bowl. Legal bets on Super Bowl LIX in 2025 alone amounted to approximately $1.39 billion. In 2026, the Super Bowl will be held on February 8 at Levi’s Stadium in Santa Clara, California.
• Seasonality: The fall-winter period is the golden time for NFL, NCAA football, NBA, NHL, and the start of NCAA basketball. March is marked by March Madness (the NCAA tournament) and active betting. Summer features MLB, tennis, golf, and international soccer. The schedule for all sporting events is conveniently tracked in the Sporting Events Calendar on 3S.INFO, allowing advertising campaigns to be prepared in advance.  

Features of Esports and Esports Betting in the United States

The United States is one of the key markets for esports, but the regulation of esports betting varies significantly from state to state. 

• Top Games by Betting Volume: CS2, League of Legends, Dota 2, Valorant, Call of Duty.
• Audience: Primarily young men aged 18–30, deeply immersed in gaming culture.
• Regulation: Some states restrict or ban esports betting, while others treat it as conventional sports.

For media buying, this is a niche with low competition, but it requires careful legal verification for each jurisdiction.

How to Attract Players to Gambling and Betting Sites in the USA: Audience Habits and Characteristics

• The USA is a melting pot: a country of immigrants, a multinational and multi-faith society. It exerts global cultural influence through Hollywood, music, technology (Apple, Google, Microsoft), fast food (McDonald’s), and mass media. The core values are individualism, freedom of speech and the American Dream (social mobility through success).
• Entertainment, not income: According to AGA surveys, most players view gambling as entertainment, not an investment. Those who see betting as a “way to invest” are a minority and are typically young men.
• Legality and trust: For over 90% of online players, the legality and regulation of a platform are essential. However, many still cannot distinguish legal sites from offshore ones. This is an opportunity for affiliates to create proper educational content (“how to identify a licensed operator”).
• Bonuses: yes, but without overkill. Americans are accustomed to welcome packages, free bets, and reload offers. However, regulators are increasingly monitoring advertisements for fast money and toxic messaging. It’s better to emphasize value and safety, rather than promises like “2x your deposit in 5 minutes.”
• Mobile live betting and micro-markets: live in-game bets, player props, same-game parlays — these are what resonate well with the younger segment.

The Importance of Localization: How Payment Solutions Should Be Presented on Casino and Bookmaker Sites

Payments in US iGaming are critical. UIGEA and local laws require banks and payment systems to filter transactions related to illegal online gambling. Therefore:

• Not all cards are accepted for deposits at offshore casinos.
• Some banks block suspicious transactions under MCC code 7995.
• Legal operators utilize white-label payment solutions, alternative methods (Play+, e-wallets, bank transfers), and clear KYC procedures.

For an affiliate, the quality of an operator’s payment stack directly impacts conversion and retention rates.

Popular Payment and Deposit Methods for Betting and Gambling Sites in the USA

• Debit cards Visa/Mastercard are standard, but not accepted by all banks. Credit cards are often restricted or questionable, with some model laws proposing to ban their use for deposits.
• ACH/eCheck, Online Banking (Trustly-like solutions).
• Prepaid cards and wallets (Play+, PayNearMe) are very popular in the USA, allowing cash deposits via an affiliate network.
• PayPal / Venmo / Skrill / other e-wallets: not universally available, but offered by many major brands.
• Cryptocurrency: gaining traction daily in the global market, but is rarely used by legal US operators due to regulations; crypto casinos primarily remain offshore for the US market.

Banks and Applications:

Banking apps are a key touchpoint: many deposits are made through online banking.

• Some banks implement transaction limits and reminders for gambling-related payments.
• For localized US landing pages, it is useful to specify the exact banks/payment methods supported by the operator (without deception or exaggeration).

Restrictions and Tips for Operators and Affiliates

• Ensure the offer is genuinely licensed in the target state. Otherwise, there’s a high chance that some payments will be unstable.
• Do not promise users “ways to bypass restrictions,” “hidden payments,” or “anonymous deposits” as these are areas of legal and reputational risk.
• Provide clear and straightforward communication about deposits and withdrawals: which methods are available, what the limits are, and how long withdrawals take.

Affiliate Marketing in the USA: How to Direct Gambling & Betting Traffic?

Why Can You Earn Well from US Traffic? 

1. Enormous Solvent Demand. The US iGaming market is valued in billions of dollars and shows double-digit growth rates, with forecasts for further expansion through the end of the decade.
2. The Legal Online Sports Betting Market in 30+ States. From 2018 to 2024, 30 states and Washington D.C. launched online sports betting, and expansion continues from 2024 to 2025 (North Carolina, Vermont, etc.).
3. High Stakes and LTV. According to a survey by NerdWallet, the average American gambler reported spending about $1,000 on gambling per year, with young men spending even more. 
4. A developed affiliate infrastructure. Almost all major operators have affiliate programs with CPA per deposit/registration, RevShare (typically 20–35%) for licensed state brands, and hybrid models. The example of approximate payouts: CPA for sportsbook in major networks for US GEO can start from $150–300+ for FTD and higher for HQ states (NY, NJ, PA) / CPA for iGaming — often $300–600+ for a depositing player with the right quality / RevShare is particularly interesting for iGaming: a long player lifetime cycle and high deposit frequency. The figures depend on the network, brand, and traffic quality, but the general range is significantly higher than in most Tier 2 GEOs.
5. In a number of GEOs (for example, West Virginia, Rhode Island, partly Michigan), competition in SEO/content is still lower than in New Jersey or New York. It is possible to occupy the niche of a “regional expert.”

Affiliate Marketing Prospects for the Next Three Years

1. New iGaming States. Model laws are being adopted, setting reasonable tax rates (15–25% GGR). This means more operators will enter, and they will need quick traffic while competition is not yet fierce.
2. Growth in the Social Casino and Sweepstakes Verticals. Amidst the regulation of classic iGaming in some states, interest in “play-for-credits/prize-winning” models, which balance between gambling and promotional contests, is increasing.
3. Cross-integration With Media and Influencers. American brands are actively striking deals with local bloggers, podcasts and streamers.

US Affiliate Marketing in Practice: Channels and Creatives

Which Channels are Currently Effective for Attracting Americans to Gambling Sites? 

The advertising policies of major platforms regarding gambling are constantly changing, so it’s always best to stick with legal brands and transparent language.

Practical Cases: How to Earn Money in US GEO

Launching Gambling/Betting Traffic by Verticals in the USA: A Checklist for Media Buyers

1. Choose a State and Vertical: Where are online casinos legal? / Where is only sports betting allowed? / What are the taxes and how many brands are there?
2. Verify Brand Legality: Is the brand listed in the state regulator’s registry? / Are there any ad restrictions in that state?
3. Define Payment Methods and Limits: What deposit and withdrawal options are available? / Are they suitable for your target audience?
4. Select a Monetization Model: CPA/Hybrid/RevShare / What traffic quality KPIs does the operator expect?
5. Prepare Creatives and Landing Pages: Mobile-first design, clear calls-to-action, avoid “easy money in 5 minutes” messaging. / Account for sports seasons (NFL, March Madness, NBA playoffs, etc.).
6. Create Transparent Informational Wrappers: Clearly explain that the brand is licensed / Include universal responsible gambling advice.
7. Set Up Analytics and Tracking: Implement tracking, cut off poor sources, test creatives and landing pages / Comply with privacy requirements (GDPR/CCPA, if applicable).
8. Monitor Regulations: Stay updated on tax changes, advertising rules, new state legalizations / Adjust content and campaigns as necessary.

Key Insights for Working with Gambling and Betting Traffic in the USA

• The USA is not a single GEO, but a collection of states with different legalization statuses. The main mistake beginners make is viewing US iGaming as a single, unified market.
• The market is enormous: $72 billion in revenue, with $8.4 billion from iGaming and $13.8 billion from sports betting currently, even though online casinos are legal in only 7 states.
• Meanwhile, the audience is getting younger: over 57% of adults gamble in some form, 53% have visited a casino within the past year; millennials and Gen Z are the primary drivers of online growth.
• Online sports betting is already legal in most states, while iGaming is legal in a minority, but with huge potential for expansion until 2030.
• For affiliates, the USA is a premium GEO with high CPA/RevShare payouts, but also high demands for traffic quality, transparency, and legal diligence.
• State-oriented strategies work best: localized content tailored to specific laws, teams, banks and player habits.
• It’s crucial not to try to game the system, but to operate within the legal framework. Otherwise, you risk not only rejected payments but also potential problems for affiliates.

In short, the US market is already lucrative and complex. By 2030, it will be even more lucrative but also more heavily regulated. For those skilled at working with quality content, analytics, and state-specific nuances, it’s one of the most promising GEOs in the world.

Anna Volotskaya

Author with 20 years of experience. I cover everything about iGaming, traffic sources, regulation, and tools—clearly, in detail, and in...

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