The American iGaming market is poised for explosive growth, with projections indicating it will reach a staggering $56.3 billion in gross gaming revenue (GGR) by 2028. This figure, forecasted by Vixio, a leading regulatory intelligence provider, has the Americas in position to surpass Europe’s regulated online gambling market in coming years.
While the expansion of legalization of sports betting and iGaming in key U.S. states is a factor, the emerging markets in Canada and Latin America is playing a major part in changing projections.
Vixio’s report highlights an annual growth rate of 20.3% for the Americas from 2023 to 2028. In 2023, the region generated $22.3 billion in GGR, a number expected to more than double within five years. The United States alone is projected to contribute $41 billion by 2028.
The shift marks a significant departure from the pre-2018 landscape, when Europe dominated regulated online gambling. The repeal of the Professional and Amateur Sports Protection Act (PASPA) in 2018 opened the door for U.S. states to legalize sports betting and iGaming, spurring unprecedented growth.
Meanwhile, stricter regulations in European markets have slowed their expansion, allowing the Americas to close the gap.
The U.S. market is dominant despite having only a few states with established iGaming frameworks. New Jersey, for instance, is on track to surpass $2 billion in annual iGaming revenue, with monthly figures consistently exceeding $200 million.
Michigan and Pennsylvania also report strong growth, with monthly revenues occasionally topping $200 million. These states benefit from progressive tax structures and modern regulatory systems that encourage greater investment.
However, momentum for new iGaming legislation in the U.S. has slowed. Since Rhode Island legalized iGaming in 2023, no additional states have followed suit. Proposals in states like Maryland and New York face resistance due to concerns over tax rates and potential cannibalization of brick-and-mortar casino revenue.
Despite these hurdles, Vixio remains optimistic about long-term growth, citing untapped potential in populous states.
Ontario’s regulated framework has driven Canada’s online gambling revenue toward a projected $4.5 billion by 2026. In Latin America, Brazil’s transition to a regulated market is expected to generate $6.3 billion by 2028, with Mexico and Colombia also surpassing $1 billion each.
Europe’s iGaming market, while still substantial, is projected to grow more modestly, reaching $41.45 billion by 2026. High tax rates and stringent regulations in countries like Germany and the Netherlands have curbed operator profitability, pushing some players toward unregulated offshore sites.
This contrast underscores the Americas’ advantage, where more flexible regulatory environments foster growth.
The projected parity between the Americas and Europe by 2028 reflects a broader power shift in global iGaming. James Kilsby, Vixio’s Chief Analyst, notes that the legalization of sports betting and iGaming in major markets like the U.S. and Brazil has reshaped the industry. “Prior to 2018, the regulated online gambling market was highly Euro-centric,” Kilsby said, emphasizing the westward shift.
Vixio’s forecasts suggest the Americas could surpass Europe by 2028, depending on currency fluctuations and regulatory developments. The U.S. remains the primary growth engine, but Latin America’s rapid expansion, particularly in Brazil, adds a dynamic layer to the region’s iGaming landscape.
The industry faces a delicate balance between regulation and growth. While flexible frameworks have fueled the Americas’ rise, excessive taxation or restrictive policies could stifle progress. Stakeholders must consider these challenges to sustain the projected $56.3 billion GGR by 2028.
