US Gambling Market Shifts: Sharp Decline in Lottery and Casino Participation

The American gambling landscape is undergoing a profound transformation. A comprehensive study by Gallup, involving 2,201 adults, presents a clear picture: overall participation in gambling has plummeted. While 64 percent of respondents in the 2016 reference year reported having gambled, that figure has dropped to just 45 percent today. This decline affects almost all traditional segments, with lotteries taking the hardest hit. Only 31 percent of participants purchased a ticket, compared to a robust 49 percent a decade ago. The survey carries a 3 percent margin of error, emphasizing the significance of these findings.

The development in physical gaming venues is particularly striking. Only 14 percent of respondents reported visiting a casino floor, down from 26 percent just a year earlier. Gallup suggests that alternative forms of entertainment, such as video games or on-demand streaming services, are increasingly replacing traditional gambling. While the online gambling sector grew slightly from 3 to 4 percent, this increase is nowhere near enough to offset the losses in land-based establishments. Horse racing also lost significant ground, falling from 6 percent to just 2 percent in 2026.

Numbers and facts

Demographic analysis of the data reveals interesting disparities. Men are more likely to gamble at 49 percent, compared to 40 percent for women. High-income Americans from households earning at least $100,000 annually participate most frequently at 54 percent. At the other end of the scale are young women aged 18 to 49, with participation rates of only 35 percent. Sports betting, despite widespread legalization across many U.S. states, remains surprisingly unstable. Only 7 percent of respondents placed bets on sporting events, which is even lower than the 10 percent recorded in 2016.

Public trust in sports integrity appears to be a major factor in this hesitation. According to an Ipsos survey from 2025, 49 percent of Americans believe that sports betting harms the fairness of the game. Scandals in the NBA, MLB, and NCAA have left deep marks. Nearly 47 percent of citizens even fear that sporting events are rigged due to betting. Among dedicated sports fans, this figure rises to 51 percent.

Background

A tangible political conflict is also brewing in the state of Michigan. The Michigan Gaming Control Board (MGCB) withdrew its membership from the National Council on Problem Gambling (NCPG) on July 1. The trigger was the NCPG's partnership with Kalshi, a platform offering prediction markets for sporting events. Henry Williams, the director of the MGCB, sharply criticized this partnership. In a letter to the NCPG leadership, he emphasized the danger that such offers undermine player protection.

"The notion that internet sports betting can and should be pursued as a viable means of financial gain or protection against financial loss undermines this position and increases the risk of irresponsible and problem gambling behavior." - Henry Williams, Executive Director of the Michigan Gaming Control Board

This move demonstrates how nervous regulatory authorities react when the lines between reputable gambling and risky financial products become blurred. The MGCB views Kalshi as a provider distributing unlicensed sports betting under the guise of insurance products, thereby bypassing current laws.

Why it matters for German players

For players in Germany, these developments offer an important lesson on the value of strict regulation. While trust in the U.S. is declining due to scandals and unclear responsibilities, the German State Treaty on Gambling 2021 (GlüStV 2021) focuses on maximum transparency. Anyone playing with a provider licensed by the Gemeinsame Glücksspielbehörde der Länder (GGL) is protected by the LUGAS system. This system ensures that the cross-provider deposit limit of 1,000 euros per month is strictly enforced, guaranteeing the financial protection of players.

Furthermore, German players are protected by the GGL whitelist from ending up with providers like Kalshi, which are currently causing legal disputes in the U.S. In Germany, the rules are clear: a stake limit of 1 euro per spin for slots and a strict separation of sports betting and casino games prevent excesses that are currently being criticized in the U.S. German regulation aims to prevent match-fixing and fraud from the outset by allowing only tested and licensed companies to operate in the market.

What it means for GGL-licensed casinos

German casinos with a GGL license can feel vindicated by these U.S. data. A reputable environment creates long-term trust. The U.S. figures prove that a lack of integrity causes player numbers to collapse. GGL operators must therefore continue to pay meticulous attention to compliance with advertising guidelines and youth protection. The focus on responsible gaming is not an obstacle, but the life insurance of the industry. In a market where 48 percent of people demand a ban on betting advertisements during live broadcasts, restrained and responsible communication is the only way to ensure social acceptance.