Online Casino Industry Poised For Major Expansion Across North America, Experts Warn Of Disruption Ahead

The online casino industry is on the verge of a significant structural shift across North America, with analysts predicting that digital gambling will expand into new jurisdictions over the coming years - a development that carries meaningful implications for consumers, regulators and brick-and-mortar operators alike.

That is the central finding of a recent analysis by Gambling.com, which examined the current state of iGaming regulation across the United States and its likely trajectory over the remainder of the decade. The findings paint a picture of an industry at an inflection point, with technology outpacing the regulatory frameworks designed to govern it.

A Market In Motion

Online casino gambling, or the ability to play games such as slots, blackjack and roulette for real money via a smartphone or computer, is currently legal in just seven US states. Yet the revenues those markets generate are substantial and accelerating fast. Commercial gaming revenue in the United States reached record highs for four consecutive years running, with online channels accounting for a growing share of that total, according to market analysis from Mordor Intelligence. iGaming alone generated a record $10.73 billion across those seven states in 2025, a 27.6% increase year on year. The gap between iGaming's revenue potential and its current legal footprint is becoming harder for state legislatures to ignore.

Speaking to Gambling.com, industry reporter Steve Bittenbender said he considers wider iGaming adoption across the United States to be a matter of when, not if. The tipping point, he suggested, is unlikely to arrive before the end of this decade, but the direction of travel is clear. "It is inevitable that iGaming is going to take over," he said.

For Canada, that trajectory carries direct relevance. Ontario became the first Canadian province to launch a fully regulated online casino market in April 2022, creating a framework that has since attracted dozens of licensed operators and generated substantial provincial tax revenue. Data published by Gambling.com, covering online casinos available to Canadian players, shows that the licensed market has expanded considerably since Ontario's launch, with player protections and operator accountability improving alongside it. Other provinces have been slower to follow, but the economic case for regulation is strengthening with each passing year.

The Disruption Question

The expansion of online gambling does not come without friction. Executives at traditional brick-and-mortar casinos have raised concerns that a mature iGaming market could draw players away from physical venues - reducing footfall, cutting food and beverage revenue and ultimately threatening jobs. Those concerns are shared by casino workers' unions in several US states, who have lobbied against iGaming legislation on employment grounds.

Bittenbender acknowledged the tension directly. Smaller regional casino operators face the greatest exposure: resorts that rely on visitors travelling specifically to gamble may find that audience shrinks as home-based alternatives become more accessible and more sophisticated. The parallel with other digitally disrupted industries is hard to miss. Retail, banking and media all experienced periods in which online alternatives eroded the revenue base of established physical businesses before new equilibria emerged. The casino sector appears to be entering a similar phase, shaped by a patchwork of state and provincial regulations rather than a single national framework.

Sweepstakes and the Regulatory Grey Zone

Complicating the picture further is the rapid growth of unregulated sweepstakes casinos - platforms that operate through promotional mechanics rather than direct cash wagering, allowing them to function in jurisdictions where real-money online gambling remains illegal. These platforms have attracted millions of users across North America, with much of the revenue flowing to offshore operators.

Proponents of formal iGaming regulation argue that bringing the market above ground is the only effective response. Carlton Saffa, chief market officer at Saracen Casino Resort in Arkansas, made the case plainly: unregulated online gaming is already widespread, and licensing it would allow governments to tax it, protect consumers and eliminate bad actors. That argument carries weight in Canada too, where the shift to regulated provincial markets has been accompanied by sustained efforts to redirect players away from unlicensed offshore sites.

What Comes Next

The structural change underway in North American gambling is gradual but directional. Regulatory liberalisation in the US will continue to generate tax revenue comparisons that pressure holdout states. Canada's own experience supports that view. Ontario's regulated market, overseen by iGaming Ontario, has grown steadily since its April 2022 launch, offering a live example of how provincial frameworks can bring offshore activity into a licensed, taxed environment. For other provinces weighing the same decision, the data from Ontario is increasingly difficult to set aside.

For consumers in Canada and the United States, the practical effect is a market that is becoming broader, more competitive and, in regulated jurisdictions, more transparent. Whether the pace of change accelerates before the end of the decade remains an open question. The direction, according to those closest to the industry, does not.

(Disclaimer: Devdiscourse's journalists were not involved in the production of this article. The facts and opinions appearing in the article do not reflect the views of Devdiscourse and Devdiscourse does not claim any responsibility for the same.)