Peter Smith
What used to feel like a limited, state-by-state patchwork has turned into a serious money-maker, with public companies and big holdings jumping in headfirst through their online casinos and betting platforms.
Let’s consider names like DraftKings, Flutter Entertainment (the folks behind FanDuel), MGM Resorts with BetMGM, Caesars Entertainment, and Penn Entertainment leading the charge. These aren’t just flashy apps anymore—they’re driving real financial growth, especially in the iGaming side (that’s online casino games like slots, blackjack, and live dealers).
The numbers tell the story: through the first ten months of 2025, total commercial gaming revenue hit $64.30 billion, up 8.7% from the year before, and iGaming alone brought in $8.78 billion, jumping 29.4%. That’s no small potatoes, and it’s only getting bigger as more states open up.
Michigan: A Shining Example of Regulated Success
In 2025 alone, the state recorded $3.09 billion in revenue from online casinos—a 26.4% increase over 2024—and total revenues from all forms of online gambling (including sports betting) exceeded $3.8 billion and produced almost $625 million in taxes.
Demand for slot machines and table games has consistently exceeded seasonal fluctuations in sports betting, as evidenced by record-setting months (i.e., $352 million in October and $315 million in December). Additionally, there has been no shortage of new providers entering the market (e.g., Hard Rock Bet was approved by the Michigan Gaming Control Board and launched in December 2025). The same partly applies to the new gambling hubs. As Vladyslav Lazurchenko from JackpotSounds noted on the situation, Michigan’s latest online casinos balanced regulation sets a benchmark by fostering innovation while protecting players—it’s why the market sustains strong growth without major issues seen in less structured setups.
Michigan is known to be one of the most popular and best-regulated states in the US iGaming industry and has been doing well since the MGCB opened up the state for business in January 2021.
DraftKings
DraftKings (NASDAQ: DKNG) started out in daily fantasy sports, but they’ve pivoted hard into sports betting and online casinos since the rules changed. Their iGaming segment has become a real standout.
In the 2nd quarter of 2025, they generated about $430MM in revenue from their online casino products (slots & table games) and are currently ranked #3 after FanDuel and BetMGM but have shown steady growth trends. The co. has been focused on becoming profitable (analysts predict 2025 will be their first full year of profitability) with an estimated net income of $214 million after incurring a loss the previous year.
Revenue guidance for the full year hovered around $6.3 billion at the midpoint, with iGaming growth helping offset some sportsbook swings.
What’s impressive is how they’ve boosted user metrics: average revenue per monthly unique payer climbed to $106 in Q3 2025, up 3% year-over-year.
High marketing costs are still a thing (they’ve spent hundreds of millions acquiring users), but retention is improving, and in states like Michigan and New Jersey, their casino offerings are gaining traction.
Flutter Entertainment and FanDuel
Over at Flutter Entertainment (NYSE: FLUT), owning FanDuel has turned them into the dominant force in the US. FanDuel isn’t just topping sports betting—it’s crushing it in iGaming too. In Q2 2025, they led with $507 million in revenue from online casino games, and overall, they held strong market share positions (around 25-30% in iGaming depending on the quarter).
Flutter’s US operations have seen double-digit revenue jumps, with iGaming making up a growing chunk of the pie. Their international experience from brands like Paddy Power helps with smart risk management and data-driven promotions.
Investors have rewarded that stability—Flutter’s stock has held up well, and their adjusted EBITDA margins are expanding nicely. The combo of sportsbook and casino has been key, especially in mature markets where cross-selling keeps players engaged longer.
MGM Resorts and BetMGM
MGM Resorts International (NYSE: MGM) brings that classic casino legacy to the digital world through BetMGM, their joint venture with Entain.
BetMGM’s iGaming side has been a growth engine, often showing higher EBITDA margins than sports betting (sometimes 8 points higher). In recent quarters, their casino revenue has grown double-digits thanks to better player retention and features like live dealers. MGM’s overall digital ops now make up a bigger slice of total revenue—up from single digits not long ago.
They lean on cross-promotions with their Vegas properties, which helps build loyalty. Challenges include regulatory costs and competition from pure digital players, but with the North American online gambling market projected to grow at around 12% CAGR from 2025 onward, their hybrid model looks solid.
Caesars and Penn: Legacy Players Adapting
Caesars Entertainment (NASDAQ: CZR) has pushed hard into digital with Caesars Sportsbook and their online casino platforms. They’ve seen steady iGaming gains, especially in places like Pennsylvania, where casino handle has climbed.
Their loyalty program ties physical resorts to app play, boosting engagement.
Penn Entertainment (NASDAQ: PENN), with ESPN Bet and Hollywood Casino online, has had ups and downs but saw revenue spikes tied to big events. Their focus on regional strength has helped, though market share battles with the big two remain tough.
Looking Ahead
The iGaming landscape in the USA will keep growing, as shown in projections with continued growth. Studies estimate the entire online gambling market could reach approximately $14-15 billion by 2031 with CAGRs between 15% and the teen years, with mobile games making up a large percentage of the activity (from 70%-80% of total volume) and modern innovations such as Live Dealer Games.
As additional states may legalize some form of commercial gambling, various barriers exist to make it difficult for them to achieve; including high taxation (51% in the state of New York on certain revenues), and concerns related to responsible gaming practices.
Reasonably, as the market has a long ways to go, innovative smaller entities, e.g., Rush Street Interactive & Bally’s Corporation, are establishing niche markets in iGaming by diversifying.
Generally, these publicly traded companies are making iGaming an important driving force for total revenue for the overall business, with several segments producing between $1 billion in revenue and experiencing double-digit growth rates. The combination of gaming regulations, technology improvements, and innovative marketing efforts by these companies have created a growing opportunity, but continued compliance and a focus on the player will be the keys to success as iGaming matures.
The casino operators in the iGaming industry are currently benefiting greatly, and that trend will be continuing for the foreseeable future.
Peter Smith
