5 Potential Gambling Industry Changes in 2025

2024 has certainly been a seismic year for gambling and remote betting in the US. Unsurprisingly, sports betting has been a seminal driver of this trend, with the market’s total handle this year set to grow incrementally when compared to 2023. More specifically, the industry is poised to set new highs in terms of handle and gross revenue, while it has already generated a record $2.223 billion in taxes.

While the growth of legal online casinos and betting sites in the US has been pronounced, the gambling industry as a whole remains in good health too. But are the potential changes that we can expect to the industry in 2025, and what trends will continue to shape and define growth stateside? Let’s find out!

• A Brief Look at the Latest Gambling Sector’s Numbers
• The Further Integration of Blockchain – How Will This Impact Gambling Laws and Regulations?
• Introducing New Player Protections – With a Particular Focus on Online Gambling Laws
• AI and Personalization –Creating Unique and Tailored Online Betting Experiences in 2025
• Skill Betting Machines – Advocation for the Expansion of Non-Slot Machine Gaming
• Gamification and Game Design – A Trend to Watch Particularly Closely in 2025

A Brief Look at the Latest Gambling Sector’s Numbers

Before we look ahead to any trends and potential gambling laws changes in 2025, it’s worth considering the state of play as the latest year draws to a close. Across the whole of the gambling industry (including both off and online verticals), total revenue peaked at $66.65 billion at the end of 2023, with this yield being dominated by casino slots and table games.

In the online casino market, cumulative revenues are projected to reach £24.98 billion at the end of 2024. What’s more, the sector is projected to grow at a compound annual growth rate (CAGR) of 9.77% over the course of the next five years, before peaking at an impressive $39.81 billion by 2029.

When appraising the online marketplace, remote sports betting is the dominant vertical. A total of 38 states have now legalized sports betting since the Supreme Court struck down the controversial PAPSA legislation in May 2018, with these jurisdictions projected to have a combined market volume of $14.30 billion at the end of this year.

These figures highlight sustained growth, with the in-person and online gambling industry clearly in a rude state of health as we prepare to usher in 2025. So, the question that remains is what changes the New Year has in store for the marketplace, particularly as a growing number of US states look to legalize and monetize various gambling verticals? Here are five things to consider ahead of the New Year!

The Further Integration of Blockchain – How Will This Impact Gambling Laws and Regulations?

A growing number of blockchains and cryptocurrencies have begun to make their mark in the iGaming space, and not just highly liquid first-generation tokens like Bitcoin, Litecoin and Ethereum. Nowadays, many casino brands and sportsbooks also accept a host of third-gen tokens, including TRON, Cardano and SOL.

This trend will continue at pace in 2025, as more blockchains and coins are embraced by online casino platforms. We also expect to see a sustained, if incremental, rise in the number of dedicated crypto casinos, which only accept digital tokens and eschew more costly fiat payment methods.

Typically, crypto acceptance has been associated with offshore casinos, but this is also likely to change in the near-term. However, the increased acceptance and integration of blockchain creates a number of potential regulatory issues, as cryptocurrencies enable players to wager anonymously online and without verifying their age, identity or geographical location in some instances.

This places a strain on existing online gambling laws in regulated marketplaces, across both sports betting and casino verticals. It certainly makes it harder for regulators to safeguard potentially vulnerable or underage players, so we may well see some adjustments and updates to existing gambling laws in 2025.

However, it cannot be disputed that blockchain technology offers significant opportunities, especially from the perspective of facilitating instant and cost-free withdrawals. What’s more, blockchain can unlock unique in-game assets that may offer value across different platforms, while we’ve already seen the emergence of so-called ‘provably fair’ crypto titles that are underpinned by cryptographic technology.

Introducing New Player Protections – With a Particular Focus on Online Gambling Laws

The US gambling industry remains in a relatively immature state, while it’s almost exclusively focused on growth and expansion. However, if we look at the tried and tested path of more mature markets across the globe (such as the UK), we see that periods of growth are commonly focused by the intense scrutiny of player wellbeing and introduction of protections.

This is already a path that US-facing brands and regulators are following, while it may soon be reflected by a raft of updated protections and online gambling laws. Many of these will be focused on the promotion and facilitation of responsible gambling, as operators are compelled to offer accessible tools and robust measures to help safeguard their customers.

Increasingly, mandatory player protection measures will be integrated into iGaming regulations and licensing conditions. So, brands may only be awarded operating licenses in certain states if they offer specific tools that help players manage their accounts, such as personalized deposit limits and time-outs. Licensing may also be contingent on brands implementing effective anti-money laundering measures.

Beyond built-in tools that allow players to control how much and how frequently they wager; we’ll also see US operators promote educational resources. These will most likely be included as part of more expansive and informative FAQ pages, which can be accessed by non-customers and provide detailed advice on bankroll management, withdrawals and responsible gambling.

Artificial intelligence (AI) is also being trialled as a way of identifying and helping problem gamblers online. Entire systems and algorithms are being developed to flag suspicious or excessive betting patterns, or those that are at odds of past activity or a player’s individual deposit limits. Customer support agents can then follow up and conduct more detailed account audits.

AI and Personalization – Creating Unique and Tailored Online Betting Experiences in 2025

Of course, a basic and rudimentary iteration of AI is already impacting the customer support services at online casinos. More specifically, AI powers the online bots used to front interactive live chat functionality, which is often accessible 24/7 at high profile casino brands and enables players to quickly and efficiently resolve basic queries.

However, this represents just the tip of the iceberg when it comes to the potential impact of AI in the iGaming space. For example, this technology is now becoming a seminal driver of customization at online casinos and sportsbooks, and 2025 is likely to see operators tailor increasingly unique experiences for players.

One of the key elements here is AI’s ability to collate and analyze huge swathes of data in real-time. This includes past player behavior, including their preferences, precise betting habits and the frequency with which they wager online. Detailed analysis can help to shape bespoke gambling experiences, which may manifest themselves in the form of unique game and bonus recommendations.

In the offline and remote sports betting spaces, AI is also being used to set more accurate and exact odds. This not only enables brands to set appealing and profitable betting lines, but it could potentially allow players to better identify value bets and benefit from more accurate implied probability values.

In many ways, AI is an immature technology that’s still in its infancy. However, it is developing at a rapid rate and continuing to uncover new applications in the iGaming space. This applies across casino and sports betting verticals too, and 2025 could see immense growth and evolution across the board.

Skill Betting Machines – Advocation for the Expansion of Non-Slot Machine Gaming

Outside of online gambling laws and regulations, the offline space is poised to see some potential changes and significant evolution too. For example, 2025 may well see states and operators look to expand their non-slot machine gaming offerings, with this potentially continuing a trend that was accelerated during the coronavirus pandemic.

During the pandemic, casinos nationwide were required to remove large numbers of upright slots to create more personal space for players. This also encouraged brands to analyze and identify the best performing games, which in turn saw them consider viable alternatives to classic slots and fruit machines.

In states where slot machines are not permitted, 2025 could well see a concerted effort to expand the provision of ‘historical horse racing’. Commonly referred to as ‘HHR’ or ‘Instant Racing’, this describes an electronic gambling product that allows players to bet on the replays of older horse and dog races.

These entities resemble slot machines and take up a similar amount of space in offline establishments. They’re primarily provided by suppliers such as Exacta Systems, PariMax and Ainsworth Gaming Technology, while states including Kentucky, New Hampshire, Virginia and Wyoming have previously sought to demonstrate the potential profitability of HHR machines to lawmakers.

Next year may well see some or all of these states create more formal plans to legalize and monetize HHR machines. This type of ‘skill’ machine could become commonplace in the coming months and years, as they provide a stark alternative to the completely randomized outcomes generated by slots.

Gamification and Game Design – A Trend to Watch Particularly Closely in 2025

Gamification has emerged as a significant trend within a number of industries in recent years, including marketing and sales. It’s also beginning to make its mark in the iGaming marketplace, as the lines between virtual casinos and video game franchises become increasingly blurred.

To understand this further, you only need to take a quick glance at the typical online casino platform. Here, you’ll often find competitive, game-like elements such as tournament leaderboards and achievements, which often enable players to accumulate points and redeem these for specific prizes.

The key component here is the ability to enjoy elements of gamification that also unlock tangible rewards. These can include bespoke bonuses or loyalty points, depending on the casino in question. Similarly, we’re likely to see gamification features become increasingly competitive in the future, creating a more enjoyable and interactive experience for all players.

Not only are casinos embracing gamification, but they’re also investing in increasingly innovative game designs. These designs are manifesting themselves in several different ways: from a more diverse array of slot game themes to the introduction of new mechanics and unusual payline structures. Similarly, 2025 may see the introduction of more multiplayer table games and live casino experiences, which has the potential to add significant value to the iGaming experience.

We’ve already discussed the potential influence of AI, of course, and how this can help to create more personalized gambling and betting experiences. This could also influence the rise of gamification in the iGaming marketplace, creating the opportunity for further customization in the future.

The Bottom Line

In recent times, the fastest growing gambling and iGaming vertical has been the sports betting market. Remember, 38 states have now legalized sports betting in the US, while this sector continues to produce record-breaking revenues, yields and tax returns year-on-year.

This trend will continue in 2025, as some of the remaining states propose and pass legislation to legalize sports betting. At the same time, operators that have already legalized the practice will look to diversify and expand, through the development of new products, exotic wager types and their esports offerings.

What’s more, we expect to see the trend for high-value acquisitions and mergers to continue well into 2025. We’ve recently seen Jackpocket acquired by DraftKings, for example, while Aristocrat procured NeoGames in a hefty $1.20 billion deal. Similar deals will help to strengthen the position of the market leaders in the US and enable them to access much larger player databases.