The U.S. iGaming market remains resilient and strong in growth, with new data showing that a big percentage still goes to offshore platforms. A new national report estimated that approximately 74% of online gross gaming revenue would be generated by offshore and unregulated operators by 2024; this share has remained quite buoyant over the years of legal expansion in various states. Reasons for this dominance vary–players cite convenience, competitive promotions, and game selection.

For many, it’s just about variety. While regulated operators are expanding their portfolios, some U.S. players still prefer offshore options due to the broader entertainment offerings they provide. For example, there are many sites like Cafe Casino for US players to explore, offering a broader range of options and features.

Industry analysts note that, despite the Supreme Court’s 2018 decision, which allowed states to regulate online wagering, offshore brands still maintain a strong presence. They often offer a diverse range of products, including slots, table games, and live dealer formats, all on easy-to-access platforms available nationwide.

Where local laws remain restrictive in states like California and Texas, offshore sites account for virtually the entire market. For example, California’s online iGaming sector generated roughly $5.49 billion last year, of which $5.49 billion was on offshore platforms. By contrast, states with established regulatory frameworks, such as New Jersey, Pennsylvania, and Michigan, have succeeded in retaining more than half of their online market for licensed operators.

The market’s general momentum cannot be doubted. Industry forecasts put U.S. online gross revenues at $26.8 billion by 2025, up from $23.4 billion in 2024. By 2028, it is going to surpass $41 billion, as growth continues to be regulated and, at the same time, involvement offshore continues. This comes amid broader trends in digital adoption.

For example, average daily screen time has risen to over seven hours among adults in the United States. According to independent studies of tech, this is naturally a thriving environment for online entertainment platforms.

The American Gaming Association just posted phenomenal strength in the sector with its latest numbers. Total casino, internet, and sportsbook gaming revenue reached $6.73 billion in May 2025, setting a new record for any single month. iGaming alone increased by 33% on a year-over-year basis — the leading segment by growth rate to reach $899.8 million for the month.

On a year-to-date basis, iGaming revenue totaled $4.29 billion, representing a 29.5% increase from the previous year. Even with its restricted footprint–just seven states–iGaming has seen increases across all jurisdictions. More than doubling in Delaware, Rhode Island, and West Virginia compared to this same month in 2024.

The competitive environment is changing. Consolidation has been the defining trend, with FanDuel and DraftKings at the top of the sports betting market and increasingly focusing on iGaming growth.

Traditional casino behemoths like MGM, Caesars, and BetMGM continue to bank on their brand recognition as digital-first firms aggressively compete for online eyeballs. Partnerships between land-based operators and tech-driven brands are also increasing as a means to combine physical presence with cutting-edge digital offerings.

Such partnerships can enhance both retention and engagement, enabling traditional operators to make a successful leap into a fully online arena.

Some states forge ahead while others hold back, forcing legislation to remain a patchwork across the country. New York, Maryland, and Louisiana are currently seen as actively pursuing iGaming bills.

In the insider’s view, if New York moves forward on this front, then other surrounding states may be prompted to revisit their restrictions. There is solid revenue potential here for a state with budget deficits whose digital sector is an extensive one, long ignored due to mere legislative barriers. It is accompanied by the likes of Connecticut and North Carolina embracing digital lotteries–a move separate from iGaming that signifies ease with gaming taking place online.

Tax policy is also another force in the market. States like Ohio and Illinois increased their 2024 sports betting tax rates, and talks to implement similar rates on iGaming are operative. Operators warned that if the rates go too high, it can stifle innovation and drive players to offshore platforms.

Such movements reflect what has been witnessed in other industries; for example, sometimes higher regional licensing fees have driven consumers to international providers who offer a broader catalogue.

Payment processing remains problematic. Delays and declines caused by certain transaction restrictions from Visa and Mastercard have prompted most operators to adopt alternatives, such as e-wallets, prepaid cards, and cryptocurrencies. Though these options offer flexibility, strong consumer trust, together with regulatory oversight, is necessary to ensure their safety. To give players more control while automating the process, some policymakers advocate for spending limits and alerts integrated directly into the payment systems.

Offshore and sweepstakes operators do not all lure with money. Many of them place a strong emphasis on the play experience by offering sleek interfaces that are fully optimized for mobile devices and interactive functionalities. In terms of design perspectives, this aligns with larger digital trends. A U.S. Bank study has found that research into UX has revealed users are 88% more likely to return to a platform that offers a personalized and seamless interface–regardless of the industry. These design elements can be as decisive as bonuses or game varieties offered in a competitive environment.

The question is not if but how much of the U.S. iGaming market’s future growth will be regulated versus offshore. Those who offer better payment options, personalization, and a wider product range will capture the market share. States with malleable tax policies, working in conjunction with regulators, banks, and operators, seem to have better local player retention. On the other hand, there are absolutely no signs that the offshore segment is going anywhere, especially not in jurisdictions without legal frameworks.

The U.S. iGaming ecosystem is evolving in multiple directions at once. Regulatory expansion and technological innovation are changes in consumer habits that reshape how or what players do when they engage with online entertainment.

Whether regulated platforms in New Jersey, vast library offshore sites, or social casinos offering a fresh twist ­­­ all denote robust demand for online gaming experiences. With billions of dollars at stake and an ever-increasing audience to cater to, both domestic and offshore operators, what best can describe the immediate years is extreme competition coupled with creative growth.