In 2024, the United States’s gambling industry reached new highs, with the total gambling revenue between January and November reaching $65.8 billion. This total builds on several years of increased growth for the sector and is expected to continue into 2025 and beyond.
If we can learn anything from the high revenue generated by gambling, it’s that Americans have made the gambling sector incredibly lucrative, and it’s far more than just the allure of the Vegas Strip that we can thank for this. The $65.8 billion total combines revenues from traditional land-based casino gambling, sports betting, and iGaming options. Traditional casinos garnered $45.2 billion, sports betting brought in $12.7 billion, and iGaming generated $7.6 billion.
The recent years of growth for gambling, particularly when it comes to casinos, both land-based and online, have created speculation that we’re in a “casino bubble” that could inevitably pop. But is this concern founded? To answer that, let’s look at the different elements at play.
Why Is the Industry Thriving?
After the industry was hit hard in 2020, it has since recovered and set new records, becoming a booming industry. The thriving of casinos has been fostered by a landscape that supports casinos, particularly the growth of online ones.
Increased Legalization
Casino gambling has been legal in most states for several decades, with Nevada leading the way as the first state to legalize this form of gaming. In the early 2010s, New Jersey and Delaware legalized online casinos, which paved the way for more states to embrace legal online gambling. In 2018, the Supreme Court made a landmark gambling decision to allow states to regulate sports betting by overturning the Professional and Amateur Sports Protection Act (PASPA). This led to many states embracing sports betting and updating regulations surrounding online gambling, legalizing online casinos in the process. Today, six states allow residents to legally gamble at online casinos: New Jersey, Delaware, Pennsylvania, West Virginia, Michigan, and Connecticut.
Accessibility
The ability to pull up casino games on our devices adds convenience and accessibility for gambling that hasn’t always been available. Rather than going to a land-based casino, you can pull a game up on your phone and test your luck anytime. The growth of online casinos and their increasing legality has made gambling more accessible than ever, creating far more opportunities for players to game and for the industry to profit.
Ease of Finding Gaming Bonuses and Promotions
Alongside their convenience, online casinos also hold another appeal: bonuses and promotions.
Casino bonuses for licensed online casinos offer many opportunities for players to try their luck while staying within their budgets, and they’re something not commonly found at traditional, land-based casinos. These incentives attract more players to the gambling industry, including those who may not have otherwise considered gambling.
AI Tools Boosting Player Engagement
Online casinos also pull players in through AI algorithms that make personalized recommendations based on their playing behavior. These tools keep people engaged and placing wagers, allowing the casino industry to thrive.
Addition of Sports Betting
Many casinos don’t just offer slot or table games; they also incorporate sports betting. This provides casino patrons, both online and in-person, with more options, which once again provides further opportunities for casinos to profit. With 38 states having legalized sports betting, it has also created more of a draw for traditional land-based casinos, as dedicated sports fans can visit them to watch the game and place bets on their team. It’s not just classic sports like football or basketball included in sports betting. Even esports and fantasy sports are included, adding even more allure to sports betting through casinos.
What Concerns Are There About the Industry?
While many elements have supported casinos and helped them become incredibly profitable, they are also met with many concerns, and it’s these concerns that could cause the casino bubble to pop.
For starters, the gambling industry has been met with calls for stricter regulations to protect players from problem gambling. The National Council of Problem Gambling estimates that 2.5 million people are severely addicted to gambling in the United States, a number that has increased as online gambling has been made more accessible.
It not only hurts people’s financial health but can also seriously impact other areas of life, most notably people’s mental health. It’s a serious concern that mental health experts, elected officials, and those affected by problem gambling don’t believe is being appropriately addressed, with many people feeling that the government is prioritizing profits over people since they get a share of the revenue through taxes.
A recent act pushed forward by US Representative Paul Tonko and Senator Richard Blumenthal calls for the federal government to pressure operators to comply with federal minimum standards and protect players’ well-being by addressing problem gambling with stricter regulations relating to betting and advertising. The bill, the Supporting Affordability and Fairness with Every Bet, or the SAFE Bet Act, hopes to mitigate the adverse social effects of gambling.
Will These Concerns Cause the Casino Bubble to Pop?
While these concerns are valid and vital to address, they’re unlikely to fully burst the casino bubble. New acts and regulations take time to pass and time to implement, which means the casino industry’s growth could be slowed but not stopped by a sudden bust. It’s also unlikely that casinos or gambling will be entirely removed or made illegal. Past gambling prohibitions have shown that people will always find a way to gamble, so the focus needs to be on finding the right balance where people can participate in gambling for fun and entertainment while mitigating the potential negative consequences.