The United States’ digital gambling sector reached an unprecedented milestone in March, pulling in a record $905.6 million in gross online casino revenue. According to state regulators and independent analysts, the figure marks a 26.2 percent surge from the same period last year and signals the fast maturation of a sector once seen as fringe.
“This is not just a spike; it is a signal,” said Kevin O’Toole, executive director of the Pennsylvania Gaming Control Board. “The numbers reflect an industry that has matured, diversified, and is now central to several state economies.”
In Pennsylvania, one of the earliest adopters of legalized online gambling, revenue climbed to $291.6 million in March—up from $230.6 million a year earlier (Pennsylvania Gaming Control Board – March 2025 Revenue Report). Michigan and New Jersey, long regarded as digital gambling stalwarts, also surpassed $240 million each. In New Jersey alone, Internet Gaming Win reached $243.9 million—a 23.7% increase over March 2024.
Sandra Martinez, an analyst at iGaming Business, attributed the robust growth in part to cross-promotions with sportsbook platforms during March Madness. “We anticipated strong performance due to the NCAA tournament, but this exceeded projections,” she said.
States with smaller markets saw gains too. Connecticut, operating with just two platforms—DraftKings and FanDuel—reported $57.7 million in revenue, a 30.3 percent rise. West Virginia posted $36.4 million, up nearly 52 percent from last year. Delaware, with a population of under one million, doubled its revenue to $10.3 million.
Rhode Island, which launched iGaming in March 2024, logged $5.1 million in revenue one year later, signaling early success for Bally’s, its sole licensed operator.
Tax coffers have benefited significantly. According to the American Gaming Association’s Commercial Gaming Revenue Tracker, iGaming operations in Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia generated $788.5 million in revenue in February 2025 alone, up 21.5 percent year-over-year, as per the American Gaming Association. With state budgets strained by inflation and spending demands, many lawmakers are revisiting their stance on digital gambling.
“Gaming tax revenue has quickly become one of the most stable sources of income for several states,” said Rachel Ng, a policy analyst at the Brookings Institution.
The NCAA’s March Madness proved to be a catalytic event for user acquisition. Online casino operators capitalized on the sports betting frenzy to attract new users by offering bundled promotions, such as casino bonuses for sports wagers. According to the American Gaming Association, March 2025 saw a sharp uptick in first-time iGaming registrations, with internal figures suggesting a significant percentage of these were redirected from sportsbook interfaces. This highlights the growing synergy between sports betting and online casino platforms, where customer crossover strategies have become a cornerstone of digital gambling growth.
“This kind of synergistic marketing shows how operators are leveraging behavioral data to boost lifetime value per user,” said Jonathan Kim, Chief Product Officer at a digital gaming consultancy. “It’s no longer just about slots or blackjack—it’s a digital ecosystem.”
Three consecutive years of double-digit revenue growth have prompted lawmakers in several states to revisit their gambling statutes. As of April 2025, over a dozen states are actively reviewing or advancing bills aimed at legalizing online gambling, including Illinois, Indiana, Massachusetts, New Hampshire, New York, and Wyoming. Advocates say the regulatory momentum reflects a pressing need to formalize safeguards around transparency, responsible play, and consumer protection amid surging market growth.
Mobile gaming now accounts for more than 85% of all online wagers, based on aggregated operator data and independent market analyses. This trend highlights the growing centrality of smartphones and tablets in user engagement and game time.Live dealer games, meanwhile, have grown to represent 22% of total iGaming revenues.
Skepticism remains. Critics point to rising addiction rates, security risks, and the lack of federal oversight. Still, the momentum is tilting in favor of legalization as statehouses confront mounting deficits.
“At this pace, it’s not a question of ‘if’ but ‘when’ for most holdout states,” said Rep. Marcus Green, Democrat of Massachusetts and a long-time advocate of online gambling legislation. “We’re looking at a seismic shift in how America approaches entertainment, taxation, and regulation.”
“There’s no turning back now,” said Melissa Tran, senior strategist at the American Gaming Association. “What we’re witnessing isn’t just record-breaking—it’s paradigm-shifting.”
As more states seek to replicate the success of early adopters, and as technology redefines the gambling experience, the US online casino industry is evolving from a high-stakes novelty into a fixture of modern economic policy.
