In August 2025, data showed that legally registered online casinos in the United States earned $910 million in gross gaming revenue. Most of the revenue earned (88%) comes from three states – Pennsylvania, Michigan, and New Jersey. Other states also experienced growth, but not nearly as sizable as these three states. This article explores these trends and reflects increasing market concentration, competitive behavior among players in the market, and the potential consequences of these trends in the market.

Recent reports show that the online casino market in the United States is very profitable, with three states dominating the sector. In August 2025, the gross gaming revenue (GGR) for all legalized states was $910 million. Most of this revenue (Pennsylvania, Michigan, and New Jersey $803 million) is from a small number of States, which shows revenue is very concentrated. 

Leading states widen the GGR gap

The American Gaming Association noted at the end of August 2025 that the GGR from online gambling had surged to 803.2 million compared to the previous period in 2024. When it had grown 31.2 per cent. The compounding growth during this period was captured from the online regulated states of Pennsylvania, Michigan, and New Jersey, which together were now at 803.2, responsible for 88 per cent of the total GGR.

The states of Michigan, New Jersey, and Pennsylvania had also reported Michigan’s leading jump of 33.9% from the previous period’s GGR to 263.3, while New Jersey was up 25.2% to 248.4, and Pennsylvania also reported in with a 29.6% growth to 291.5. The smaller gaming states of Connecticut, West Virginia, Delaware, and Rhode Island had also seen growth, albeit scattered and too small to make any noticeable difference to the GGR.

The growth data in this sector highlights that there is a continuing trend of the gap in the total GGR of the smaller and larger states. This is especially apparent in the top 3 states, and there is limited ability for the smaller states to match this output.

Market momentum accelerates across key iGaming regions

The revenue performance in August is additional evidence confirming an ongoing trend established earlier in the year. For the first time, online casino gaming revenue in the U.S. reached $905.6 million in March 2025, a record-breaking month, per the American Gaming Association. 

Subsequently, Pennsylvania, Michigan, and New Jersey topped $240 million in GGR each. With these figures, these states’ market dominance can be confirmed as a multi-month trend, not the result of a one-off, isolated month.

In March, Michigan also reached $260.5 million in total GGR, the state’s largest monthly online casino revenue ever. Analysts indicate that Michigan’s population size is not the only reason for these totals, but also regulatory frameworks, licensing models, and operator infrastructure. Other states that have lower populations also have the same revenue range as Michigan does.

Competition intensifies as top operators consolidate gains

As top players in the market reach the peak of their revenue potential, the GGR revenue of market bottom players becomes zero. The top players in the GGR market in Michigan are also the top players in the market of the rest of the other states as well. For example, licensed platforms and operators in Pennsylvania, Michigan, and New Jersey are top players in the market and are mostly capturing all of the modulus activity. For these top players, the GGR is also mostly consolidated among them, which is limiting market GGR to smaller players.

This creates a self-perpetuating cycle where higher revenues allow operators to spend even more on technology, advertising, and acquisition, bringing in more customers and generating even more revenue. New and small operators have a very hard time competing on this level. This leaves well-established operators in prime locations with no competition.

Growth outlook strengthens for U.S. online casino sector

With monthly GGR staying the same at just under $900 million, experts in the industry believe this will continue with no signs of stopping. They believe that at this rate, revenue will increase to $900 million in a couple of months. 

This increase shows that customers have a demand for online casinos that operators are meeting in newly regulated states. This shows that customers have a demand for the service, and the operators have the necessary regulations in place to meet the demand.

This reliance on a high volume of traffic to a few states raises issues about the overall health of the market. When 90 per cent of the US online casino revenue is being created by just 3 states, the smaller states are going to have a hard time getting the bigger operators and investment. This makes the states with high traffic very appealing to new operators looking to build casinos.

What may come next

If the U.S. online casino market continues to expand as predicted, businesses in the online casino sector may soon encounter unprecedented monthly revenue figures. With the potential each market possesses, the larger operators will likely focus marketing, advertising, and overall business strategies towards the most dominant and profitable players. If this becomes the case, the competitive gap will only grow wider as the larger operators invest in and further foster the top markets.

For states with smaller population sizes, the topos may also be winning strategies at the policy level, with updating the state’s legal framework to improve marketing and business partnerships with the online casino operators, expanding the legal business geography to increase consumer accessibility, and improving the overall consumer-per-citizen ratio. 

Decisions regarding new licenses and taxation, as well as the overall goals around legal frameworks, will be the most significant in determining how the allocated market share will be distributed to each state.

Source: https://zamsino.com/de/germany/free-spins-no-deposit/