What’s Driving the Growth of Online Gambling and Casinos?

Online gambling and casinos are growing at an incredible pace. The global market was valued at $95.5 billion in 2024 and is expected to reach $257 billion by 2034. In the U.S., online gambling revenue is projected to jump from $14 billion in 2023 to $40 billion by 2029. Sports betting alone brought in $13.71 billion in 2024, a 25.4 percent increase from the previous year.

This surge is not just about convenience. Mobile gaming, legal expansions, and new technology are changing how people place bets. With AI-driven platforms, cryptocurrency transactions, and evolving regulations, the gambling industry is shifting faster than ever.

So, what is fueling this rapid growth, and how has it evolved in the past? Let’s take a closer look.

The Evolution of Gambling: A Brief History

Gambling has been a part of human culture for centuries. The earliest records of gambling date back to 2300 BC in ancient China, where rudimentary games of chance were played. Over time, gambling evolved across different civilizations:

Ancient Rome and Greece: Citizens placed bets on gladiator fights and chariot races.
17th and 18th Century Europe: The first regulated casinos were established in Italy and France.
19th and 20th Century America: Gambling flourished in cities like Las Vegas and Atlantic City, becoming a major industry.
21st Century: The rise of the internet brought online gambling, making betting more accessible than ever before.

Today, gambling continues to grow with the latest technological advancements, legal changes, and cultural shifts. Read ahead to learn more about the impact of these factors on the gambling industry.

How Technology is Transforming the Gambling Industry?

Technology is changing gambling, making it easier and more engaging. Mobile gaming now accounts for 70 percent of online bets. Live dealers and VR create real casino experiences, while AI improves security and personalizes gameplay.

These changes are shaping the future of online casinos. Keep reading to see how.

1. The Rise of Mobile Gaming

As of 2025, there are 5.56 billion internet users worldwide, representing 67.9% of the global population. The biggest driver of online gambling? Mobile gaming. According to industry reports, approximately 70% of online gamblers now place bets via their smartphones. This shift means users can play slots, poker, or bet on sports from anywhere, eliminating the need for physical casino visits.

2. Live Dealers and Virtual Reality in Online Casinos

Live dealer games have gained massive popularity, allowing players to interact with real human dealers via high-definition video streams. This innovation makes online gambling feel more like a traditional casino experience.

Meanwhile, virtual reality (VR) gambling is projected to reach $2.5 billion by 2027, as more platforms integrate VR environments. Some casinos now offer fully immersive experiences where players can walk through virtual casinos and interact with digital tables. While still in its early stages, VR gambling is expected to become a significant trend.

3. Artificial Intelligence (AI) and Personalized Gaming

AI is transforming online gambling by tracking player behavior and offering personalized game recommendations. AI-driven analytics help casinos detect fraud, enhance responsible gaming measures, and tailor promotions to individual users. Moreover, AI is being used to identify and support players at risk of gambling addiction by analyzing betting patterns.

How Legalization is Expanding the Online Gambling Market?

Technology is changing gambling, making it easier and more engaging. Most players are moving towards mobile gaming. Live dealers and VR create real casino experiences, while AI improves security and personalizes gameplay. Read on to explore how technology is transforming the industry.

A. The Rapid Growth of Online Gambling in the United States

For years, online gambling faced heavy restrictions in the US. However, since the 2018 Supreme Court ruling that allowed states to legalize sports betting, the industry has exploded.

The US online gambling market was valued at $11.0 billion in 2024 and is projected to reach $22.0 billion by 2033.
New Jersey’s online gambling revenue hit a record $212.4 million in December 2023, which shows the growing demand for digital casinos.
States like Michigan, Pennsylvania, and New York have fully embraced online gambling, with more states expected to follow suit in the coming years.

B. Global Expansion of Online Gambling

The rise of online gambling is not just limited to the US:

The Philippines expects a 17% increase in gambling revenues by 2025, driven by the growth of electronic gaming and integrated resorts.
Ireland has introduced strict gambling regulations focusing on consumer protection and responsible gaming.
Countries across Europe and Latin America are exploring new regulations to legalize and regulate online gambling.

The Cultural Shift: How Gambling Became Mainstream

Gambling is now seen as a regular source of entertainment, not a taboo. Digital platforms, social media, and advertising have made it more visible and accessible. More people, from casual bettors to esports fans, see it as entertainment.

This shift comes from two main factors: the rise of gambling as a fun activity and the power of online promotion. Let’s look at these in detail:

A. Gambling as a Form of Entertainment

Gambling is no longer viewed as a taboo activity. Today, many people see it as a form of entertainment comparable to watching sports or playing video games.

70% of Irish adults engage in some form of gambling, whether through sports betting or online slots.
Nearly 85% of U.S. adults have tried gambling at least once, with 60% having placed a bet in the past year. Another survey of regular sports bettors found that 71% bet to win money, 61% for excitement, and 51% for the challenge of picking winners.
The rise of esports betting and fantasy sports has introduced younger audiences to betting, blending gaming and gambling into one experience.

That’s not it. Social media and advertising are other driving forces in making gambling popular worldwide.

Online casinos are leveraging social media influencers, YouTubers, and Twitch streamers to promote gambling platforms. Celebrity endorsements, sports sponsorships, and targeted digital advertising have made online gambling more mainstream and accessible to new audiences.

The Role of Financial Technology in Online Gambling

Financial technology is reshaping how players deposit, withdraw, and manage their funds. With faster, more secure payment options, gambling platforms are adapting to meet new demands. Read on to see how financial technology is changing the game.

A. Cryptocurrency and Digital Wallets in Gambling

Traditional banking methods can slow down gambling transactions, but digital payments are revolutionizing the industry:

E-wallets like PayPal, Skrill, and Apple Pay enable instant deposits and withdrawals.
Cryptocurrencies like Bitcoin provide enhanced security, anonymity, and faster transactions. In fact, the total number of cryptocurrency users around the world is expected to reach 861.01m users in 2025. This means gambling platforms with cryptocurrency withdrawals reach broader audiences.
The demand for instant withdrawals has prompted online casinos to integrate seamless and secure payment gateways.

B. How Blockchain Technology is Improving Transparency?

Blockchain technology is enhancing trust in online gambling by providing decentralized, tamper-proof ledgers. This ensures fair play and prevents fraud, making it particularly appealing to security-conscious players.

Why Online Casinos Are More Engaging Than Ever?

Online casinos are no longer limited to placing bets. They offer interactive and social experiences that keep players coming back. From gamification to live streaming, new features are making gambling more immersive than ever. Let’s look at the factors in more detail.

A. Gamification and Player Engagement

Online casinos now incorporate gamification techniques to keep players engaged:

Leaderboards track top players and encourage competition.
Daily challenges and missions offer bonuses and rewards.
Loyalty programs provide cashback, free spins, and exclusive perks.

These features transform gambling into a more interactive and rewarding experience.

Live streaming on platforms like Twitch and YouTube has turned gambling into a spectator sport. Many players now watch professional gamblers in action, share their own experiences, and engage in live discussions. This social element makes online gambling more interactive and community-driven.

The Future of Online Gambling: What’s Next?

The online gambling industry is set for big changes, driven by technology and new laws. Here’s what’s coming:

More Legal Markets

More states and countries are legalizing online gambling, opening up new opportunities. The global online gambling market is expected to grow from $93.26 billion in 2024 to $153.21 billion by 2029, with a 10.44 percent annual growth rate.

Virtual Reality (VR) Casinos

VR is making online casinos more immersive. The global VR market is expected to grow 27.5 percent annually, reaching $435.36 billion by 2030. More platforms are introducing VR-based gambling, allowing players to experience digital casinos in a lifelike way.

AI-Powered Gambling

Artificial intelligence is helping casinos personalize player experiences and improve engagement. Casinos using AI have seen up to a 20 percent increase in player retention rates. AI also helps identify problem gambling patterns, making online casinos safer.

Stronger Regulations

As gambling grows, stricter regulations are being put in place to protect players. AI is being used to monitor behavior and detect risky gambling habits.

With new technology, expanding markets, and better safeguards, online gambling is growing fast. These changes will shape the industry’s future in the years ahead.

Summing Up

Online gambling has transformed from a niche pastime into a booming global industry. Mobile gaming, live dealer experiences, AI-driven personalization, and the rise of cryptocurrency have reshaped the way people play. Meanwhile, legal expansions and cultural shifts continue to push the industry forward, making online casinos more accessible and engaging than ever.

With so much innovation happening, now is the time to be part of this rapidly growing market. Whether you’re looking to launch your own casino or upgrade your platform, Source Code Lab has the tools to help you succeed. Our Turnkey and White Label solutions are designed to set your business apart.

Ready to build the next big online casino? Let’s make it happen.

Table of contents

What’s Driving the Growth of Online Gambling and Casinos?

The Evolution of Gambling: A Brief History