Vixio Predicts iGaming and Sports Betting Reaching $26.8B Revenue in 2025

Vixio Regulatory Intelligence announced in its latest reports that the combined revenue of online gambling and sports betting markets in the US could reach as much as $26.8 billion this year, with a potential growth goal of up to $41 billion by 2028. 

Meteoric Rise of Online Casinos

This financial milestone would hardly be possible without the ever-increasing popularity of online casinos. iGaming keeps attracting a wide crowd due to its convenience and ease of use, seeing that numerous games are now available on smartphones, a literal tap away at any time. 

Licensed online venues like KlikkiKasino.com offer their players huge welcome bonuses, promotions, and cashback options. The increased security and customer protection measures are now major selling points for players who want to enjoy their entertainment without necessarily having to go to a physical casino. 

Some labor groups are concerned about the upward trend, which has led to a certain hurdle on the road to future growth. Parts of the community are worried that this increased popularity will “cannibalize” the traditional brick-and-mortar gambling industry, so there are certain pushbacks to their liberal regulation.

Betting on the Competition

Sports event contracts remain an important competition to traditional wagering. The “sports event trading” that’s operated by Crypto and Kalshi is effectively a similar mechanism, offering a way for people to trade their predictions on the outcome of big events like the Super Bowl. While this is not exactly wagering, it follows a similar line, but is permissible by law through CFTC regulations. 

In the meantime, the gross gaming revenue for online sports betting in a more traditional sense, while taking hits, is still on the rise. Vixio predicts this segment of the GGR to rise to $25 billion in the next three years, with the bull case scenario being as much as $29B, under the condition that several more states approve sports wagering. 

Expansion and Taxation of Sports Betting

The Supreme Court declared PASPA (Professional and Amateur Sports Protection Act) unconstitutional in May 2018, thus allowing states other than Nevada to decide on their own regulations on sports betting. At the time, 31 states allowed betting on sports online, with another eight permitting it in physical venues. Later this year, Missouri is expected to regulate mobile sports wagering as well.

Wagering on sports in the US is projected to achieve gross revenue in the range of $17.2-24.8 billion during 2025. Ohio and some other states are currently considering an increase in gaming taxes in order to increase their revenues. James Kilsby, Vixio's chief analyst, said that the policy focus for this year will probably “remain more on the potential for regulatory restriction” on both federal and state levels. With Illinois introducing gradual taxation for wagering, Ohio and Maryland are putting similar laws into consideration as well.

Possible Additions to the Roster

2025 could see the list of states allowing wagering and iGaming extended, but things are still not completely certain. According to Vixio, Texas, Georgia, California, Alabama, Minnesota, and Mississippi are the ones most likely to whitelist sports betting. California is the main prize for the proponents of this branch, but it remains to be seen if the legal landscape will show the willingness to adapt. 

Online gambling is currently legal only in seven states: Rhode Island, Connecticut, Michigan, Delaware, New Jersey, Pennsylvania, and West Virginia. iGaming seems to be a harder pill to swallow for state legislators, and similar results are expected this year. In 2024 we had ten states actively considering legislation, although none have decided to pull through yet.