2025 Financial Projections for U.S. Online Casinos and Sportsbooks

Feb 28, 2025

Illya Nayshevsky, Ph.D.

Introduction

The U.S. online gambling industry, encompassing sports betting and iGaming, is poised for significant expansion in 2025. Forecasts predict total revenue reaching $26.8 billion, up from $23.4 billion in 2024, reflecting a nearly 15% increase. Sports betting remains the dominant sector, with a 2024 estimated handle of $149 billion, while iGaming continues its upward trajectory, led by New Jersey surpassing $2 billion in annual revenue. Major operators, including FanDuel, DraftKings, BetMGM, and Caesars, retain substantial market share, but new entrants such as Fanatics and ESPN Bet are aggressively positioning themselves to capture meaningful traction in the industry.

As 2025 marks a crucial year for profitability, the industry's focus shifts from aggressive customer acquisition to sustainable growth. Many operators predict positive earnings, prompting an emphasis on revenue generation, customer retention, and operational efficiencies. This comprehensive report delves into the latest market trends and forecasts for key industry players.

Market Trends & Outlook for 2025

Continued Revenue Growth: The U.S. online gambling sector is projected to see continued double-digit growth, with total revenue reaching approximately $26–27 billion in 2025. Despite some challenges in late 2024, including unfavorable sports betting outcomes, increased consumer engagement and product innovations, such as same-game parlays, will drive higher betting volumes and hold percentages.
Online Casino Expansion: The iGaming market, currently limited to seven states, is experiencing record-breaking revenues. Should a major state, such as New York, legalize online casino gaming, industry-wide revenue projections could see an even greater increase.
Push for Profitability: Operators are prioritizing long-term customer retention over costly acquisition campaigns. Key strategies include loyalty programs (e.g., BetMGM’s MGM Rewards and Caesars Sportsbook’s Caesars Rewards) aimed at increasing customer lifetime value while reducing churn rates.
Consolidation & Competition: The “Big Four” maintain their stronghold with ~80% market share, while new competitors like Fanatics and ESPN Bet aim to disrupt the established hierarchy. Simultaneously, smaller operators are finding it increasingly difficult to maintain a foothold, leading to continued industry consolidation.
Operational Efficiencies: Companies are leveraging artificial intelligence, optimized payment solutions, and media integrations to enhance margins and improve overall user engagement.

Operator-by-Operator Projections

FanDuel (Flutter Entertainment)

Market Leader: Holding ~40% of U.S. sports betting revenue, with projected 2025 revenue growth of ~29%, surpassing $7 billion.
Profitability: Already EBITDA-positive since 2023, aiming to further increase profits in 2025.
User Engagement: High adoption of same-game parlays and live betting, fueling continued expansion of its customer base.

DraftKings

Revenue Growth: Forecasted revenue of $6.3–$6.6 billion, representing ~39% YoY growth.
Profitability: Expected to achieve its first full year of profitability due to improved operating leverage.
User Growth: Monthly active players anticipated to exceed 6 million.

BetMGM

Revenue & Market Share: Leading the U.S. iGaming sector (~22% market share) with expected revenue of $2.4–$2.5 billion.
Profitability: On track to achieve positive EBITDA for the first time in 2025.
User Base: Engaged customer base driven by exclusive content and high cross-sell conversion rates.

Caesars Digital

Revenue Growth: Projecting $1.3–$1.5 billion in revenue, continuing to expand its iGaming footprint.
Profitability: Targeting $500 million in EBITDA by year-end 2025.
User Retention: Strengthening customer engagement through Caesars Rewards and cross-platform synergies.

Fanatics Betting & Gaming

Emerging Competitor: Demonstrating rapid market share expansion (~6% of handle in 2024, expected to double by 2025).
Revenue Projections: Potential $2 billion+ in revenue, leveraging its extensive merchandise ecosystem.
User Strategy: Converting its 95 million sports merchandise customers into engaged bettors through exclusive perks.

BetRivers (Rush Street Interactive)

Revenue Growth: Expected to generate $1.0–$1.1 billion in 2025 while maintaining profitability.
Market Position: A strong contender in online casino markets across key states.
Operational Strategy: Focused marketing spend and steady expansion in select regions.

Bally’s Digital

Rebuilding Phase: Transitioning to an upgraded technology platform, forecasting $200–$250 million in 2025 revenue.
Profitability: While not yet profitable, the company is making strides toward reducing losses.
User Growth: Concentrating on iGaming expansion and strategic sportsbook rollouts.

Other Notable Operators & Trends

ESPN Bet: Despite initial challenges, ESPN Bet is integrating content and media partnerships to enhance user engagement.
WynnBET & Hard Rock Digital: Carving out niche market positions through VIP experiences and localized strategies.
Industry Consolidation: As smaller brands struggle to compete, the market is becoming increasingly concentrated around the top operators.

Conclusion

The U.S. online gambling industry is set for another transformative year in 2025, with revenues projected to approach $27 billion and numerous operators achieving profitability. FanDuel and DraftKings continue to lead the pack, while Fanatics and ESPN Bet accelerate their expansion efforts. Consumers will benefit from enhanced loyalty programs, improved betting features, and more engaging user experiences. As regulatory shifts, economic conditions, and competitive pressures continue to shape the industry, 2025 will be a defining year for market leaders.

Ultimately, this year will determine long-term winners and solidify market positions, setting the stage for an even more mature and profitable online gambling sector in the years to come.