iGaming is booming.
The online gambling market was recently valued at $105.5 billion in 2025 and is projected to reach a huge $286.4 billion by 2035, making it one of the largest markets on the planet.
This explosive growth has been taking place for well over a decade now, but it was the COVID-19 pandemic that accelerated things and introduced an entirely new generation to online casinos, popular sweepstakes casinos, and other similar sites:
✔ Gen Z now makes up 34% of all betting activity in the US
✔ Around 32% of Canadians report gambling over the past year
✔ 48% of 18-to-24-year-olds in the UK have gambled this past year
It is, quite literally, an iGaming take over around the world, with younger generations in particular becoming obsessed following a rise in the number of gambling apps, the ‘gamification’ of online casinos, and the fact that countless streamers on Kick and Twitch are now broadcasting themselves playing on gambling sites.
Investment in iGaming is Up Following Positive Market Trends
With no sign of the iGaming market slowing down, there’s plenty of investment going on at the moment.
The Roundhill Sports Betting & iGaming ETF jumped around 30% in 2025 as people poured money into its online gambling stocks, showing that everyday investors are backing iGaming more than ever.
A big recent movement has been Allwyn’s €16 billion merger with OPAP, creating a global lottery-led entertainment and gaming operator that will no doubt accelerate iGaming growth worldwide.
Then there’s Flutter Entertainment, the company behind FanDuel and Paddy Power, which has just acquired Italy-facing omnichannel operator Snaitech for €2.30bn to allow them to “invest in leadership positions in international markets” and “create shareholder value” from an enhanced market position.
2025 also saw London-based fintech Yaspa secure a $12 million investment, led by Discerning Capital, to support its expansion into the US iGaming market, where it will be able to market its Intelligent Payments platform to support real-time transactions from players.
What’s been most impressive about the iGaming industry is that it’s been able to maintain such high levels of growth and investment despite a seriously struggling economy for close to half a decade now.
Where many sectors have struggled, iGaming has not only thrived but somehow grown, something that’s further driven investor confidence over recent years. If online casinos can still attract millions of users now and experience impressive cash flow, the thought pattern is imagine what they could do in a thriving economy.
New York, Illinois, and Other States Pushing to Legalize Online Gambling
With iGaming exceedingly popular, a growing number of states are also looking to legalize online casinos and sports betting.
New York is the big one, with Senate Bill 2614 designed to legalize online casinos and lottery sales in the state.
It’s a similar story down in Illinois, as the Prairie State is currently pushing to legalize online casinos with a 25% tax rate through House Bill 3080 and Senate Bill 1963.
These states are looking to follow in the footsteps of Maine after the state recently passed the legalization of online casinos and poker via LD 1164, titled “An Act to Create Economic Opportunity for the Wabanaki Nations Through Internet Gaming.”
Doing this is, of course, an excellent financial opportunity for states, who are more than aware that legalizing iGaming in its various forms is a guaranteed way to generate tax revenue from players.
There’s big money on the table and you only have to look at a state like New Jersey to see it, who generated over $520 million in state tax revenue in 2025 from iGaming and sports betting, with online casinos contributing the major bulk.
When individual states are lining up to legalize more iGaming avenues, you know it’s a thriving industry, especially as it was only a decade ago when many states were afraid to go anywhere near online gambling due to the stigma and controversy surrounding it.
Sweepstakes Casinos Have Created an Exciting iGaming Sub-Market
One of the surprise contributors to the booming iGaming market has been sweepstakes casinos.
These new types of casinos, where players bet virtual ‘Sweeps Coins’ tokens instead of actual money, are experiencing huge user growth right now, with the likes of Stake.us and Chumba Casino all boasting well over 1 million users each.
Eilers & Krejcik projected sweepstakes casinos to have generated around $11 billion in 2025, despite many states like New York and California opting to ban or severely regulate them.
Essentially, sweepstakes casinos have created an entire new market for iGaming consisting of casual gamers instead of hardcore gamblers.
Many of these gamers have seen their favorite streamers, like Adin Ross and even rapper Drake, promote these types of casinos when broadcasting, leading to countless sign-ups off the back of it.
And now, sweepstakes casinos are almost as popular as regular online casinos, not least because they’re legal in 40+ states thanks to the sweepstakes model giving them more leeway.
With sweepstakes casinos now on top, it’s only made the iGaming market more attractive for investors, as the player pool is made up of classic gamblers and casual gamers rather than just the former.
If sweepstakes casinos continue to rise up while more states legalize online casinos, it’s only going to give more power to iGaming, which is exactly what investors want.
Should You Invest in iGaming?
What’s clear to see is that iGaming is one of the best markets for investors to invest in.
It’s one of the world’s only leading markets to have gone from strength to strength in a time where people are actively spending less money and the global economy fails to get back on track.
Not only has iGaming become a social or entertainment outlet for people, but some are even treating it as a type of “side hustle” as they chase the different rewards offered by gambling sites.
Provided that legalization efforts continue to be ramped up by states and investor confidence remains at an all-time high, iGaming certainly has a strong future, which can’t be said for a lot of other industries right now.
Peyman Khosravani is a global blockchain and digital transformation expert with a passion for marketing, futuristic ideas, analytics insights, startup businesses, and effective communications. He has extensive experience in blockchain and DeFi projects and is committed to using technology to bring justice and fairness to society and promote freedom. Peyman has worked with international organizations to improve digital transformation strategies and data-gathering strategies that help identify customer touchpoints and sources of data that tell the story of what is happening. With his expertise in blockchain, digital transformation, marketing, analytics insights, startup businesses, and effective communications, Peyman is dedicated to helping businesses succeed in the digital age. He believes that technology can be used as a tool for positive change in the world.
