The online gaming scene in the U.S. is changing fast, honestly—sometimes it’s tough to keep up. As of 2025, only seven states have fully legalized online casino gaming, while many others allow sports betting or are actively pursuing comprehensive gambling legislation. This patchwork of regulations creates a complex map for players and operators trying to figure out where it’s actually legal to play online.
Several states have made some real progress toward legalization lately, with active bills moving through legislatures in Illinois, Massachusetts, New York, and New Hampshire.
Meanwhile, established markets like Pennsylvania and New Jersey keep pulling in substantial tax revenue, giving other states a pretty compelling example to follow. It’s interesting to see the contrast between states with full online casino access and those that stick to just sports betting—lawmakers really aren’t on the same page about this stuff.
Understanding which states permit online gaming isn’t exactly straightforward. You have to look at current laws, pending bills, and all sorts of regulatory quirks.
The legal landscape changes so often that both players and industry insiders have to stay on their toes. New bills advance, some stall, and suddenly what was true last month isn’t anymore.
Overview of Online Gaming Legalization in the U.S.
Online gambling regulation in the U.S. is a bit of a maze. Federal law sets some boundaries, but the real power sits with the states—they control licensing, oversight, and all the nitty-gritty details.
The journey from prohibition to acceptance hasn’t been simple. It’s taken court decisions, shifting public attitudes, and, let’s be honest, the lure of new tax revenue to get here.
Federal vs. State Regulatory Approaches
Federal law lays the groundwork for online gambling regulation, but it doesn’t legalize specific activities. The Wire Act of 1961 was a big hurdle, restricting most remote wagering across state lines.
Then the DOJ’s 2011 opinion narrowed the Wire Act’s scope to just sports betting. That move cracked the door open for states to regulate online casinos and poker within their own borders.
Key Federal Regulations:
- Wire Act (sports betting restrictions)
- Unlawful Internet Gambling Enforcement Act (payment processing rules)
- Indian Gaming Regulatory Act (tribal gaming rights)
States are really in the driver’s seat when it comes to gambling. They set up their own licensing systems, tax rates, and operational rules.
Some states let tribal operators have exclusive rights to online casinos. Others allow commercial operators to partner up with land-based venues.
Tax rates? They’re all over the place—anywhere from 8% to more than 50% of gross gaming revenue.
This patchwork means neighboring states can have wildly different online gambling laws. Players definitely need to check local regulations before logging in.
Historical Legal Milestones in Online Gaming
The big turning point was the 2018 repeal of the Professional and Amateur Sports Protection Act. That Supreme Court decision in Murphy v. NCAA finally let states regulate sports betting for themselves.
Delaware got the ball rolling for online casinos in 2012, launching games a year later. Nevada and New Jersey weren’t far behind, setting up their own systems that same year.
Timeline of Major Developments:
- 2011: DOJ Wire Act reinterpretation
- 2013: First regulated online casinos launch
- 2018: PASPA repeal triggers sports betting wave
- 2021: Multiple states launch iGaming platforms
Pennsylvania’s 2017 legislation set up one of the most comprehensive online gambling frameworks out there. Now, the state is pulling in over $2 billion a year from digital gaming.
Michigan’s 2021 launch was pretty wild—they had 15 licensed operators up and running within a few months. Clearly, there’s demand when the rules make sense.
Key Factors Driving Legalization
Tax revenue is the big motivator for most state legislatures. Pennsylvania alone pulled in over $700 million in online gambling taxes in 2023.
States also want to compete with illegal offshore sites. Regulated frameworks keep gambling revenue at home and offer consumer protections.
Primary Drivers Include:
- Revenue generation for state budgets
- Consumer protection through regulation
- Competition with illegal operators
- Economic development opportunities
Public opinion has really swung in favor of online gambling, especially among younger folks. They’re just more comfortable with digital everything.
Industry partnerships with land-based casinos help ease worries about cannibalizing existing business. In fact, a lot of states require online operators to team up with brick-and-mortar venues.
Labor unions in some places push back against online casino expansion, worried about job losses. This has slowed things down in states like New York and Illinois.
Charitable gaming groups also aren’t thrilled. They fear online casinos will eat into their fundraising from traditional gaming nights.
2025 Legalisation Map: States Where Online Gaming Is Allowed
The U.S. online gaming map is honestly a mess—nine states have legal online casinos, and a bunch more allow online sports betting. Pennsylvania is the revenue champ at $2.1 billion, while Michigan gives residents 15 different casino apps to pick from.
Visual Guide to Legal States
It’s a mixed bag out there. Nine states currently allow online casinos, but way more have given the green light to sports betting.
States with Legal Online Casinos:
- Connecticut
- Delaware
- Michigan
- Nevada (limited)
- New Jersey
- Pennsylvania
- Rhode Island
- West Virginia
- Maine (pending)
Key Revenue Leaders:
Pennsylvania tops the charts with $2.1 billion in annual online casino revenue. Michigan isn’t far behind, raking in $1.9 billion in 2023.
New Jersey’s market is the most crowded—30 licensed online casino options. Michigan’s 15 different apps include big names like BetMGM Casino and Caesars Palace.
Delaware was the trailblazer, legalizing online casinos back in 2012. Nevada technically allows online casinos, but no one’s launched anything thanks to the state’s focus on tourism.
Status of Online Casinos by State
Fully Operational States:
Connecticut launched in October 2021 with just DraftKings and Mohegan-branded casinos. Tribal authorities pay an 18% tax for now, which will bump up to 20% later.
Pennsylvania has 21 licensed apps since 2019. The state takes a hefty cut—over a third of operator revenue.
Michigan residents can pick from 15 apps, including all the national brands. Both commercial and tribal operators are in the mix.
New Jersey’s been at it since 2013, with 30 licensed options. Players there get exclusive games like Wheel of Fortune Casino.
Limited Markets:
Rhode Island has only Bally’s online casino, which just launched in March 2025. Delaware is all in with BetRivers Casino, run through the state lottery.
West Virginia has seven licensees, including BetMGM and DraftKings, since July 2020.
States With Online Sports Betting
Online sports betting is legal in over 30 states—compare that to just nine with online casinos. Major states like New York and Illinois are all-in on sports betting but still say no to casino games.
Sports Betting Leaders:
New York leads the pack in sports betting revenue, even with high tax rates. Illinois recently hiked its tax rates on online sports wagering.
Expansion Trends:
Sports betting tends to get less political pushback than casino games. There’s still plenty of opposition to online casinos, mostly for social reasons.
States usually start with sports betting and then maybe consider casinos down the road. The tax revenue from sports betting definitely helps grease the wheels.
Active Proposals:
Illinois has bills in the works for online casinos after seeing how well sports betting did. Massachusetts is also thinking about expanding to casinos after a careful rollout of sports betting.
States With Full Online Casino Legalization
Eight states have gone all-in on legal online casinos, setting up licensed operators, consumer protections, and tax revenue streams for state governments.
Connecticut’s Market and Regulations
Connecticut’s online casino market launched in October 2021, thanks to deals with two tribal authorities. The Mashantucket Pequot Tribe Nation and Mohegan Tribe run the state’s only legal platforms.
DraftKings Casino is with the Mashantucket Pequot Tribe. FanDuel powers the Mohegan-branded online casino.
The state keeps things tight—only these two tribal operators can offer online casino legalization in Connecticut. Licensing is strict and the market is small.
Connecticut grabs 18% of gross gaming revenue for now, bumping it to 20% in 2027. Players don’t have a ton of choice—just two platforms are available.
New Jersey’s Legal Framework
New Jersey stands out with 30 licensed online casino operators. The state legalized online casinos in February 2013 and had sites live by November.
Every online casino has to partner with a physical casino or racetrack in the state. That way, existing venues get a piece of the digital pie.
Some gaming options are unique to New Jersey—Wheel of Fortune Casino, for example, is only there. The Division of Gaming Enforcement keeps a close watch on everything.
Monthly online casino revenue is always over $150 million. With so much competition, players get better bonuses and more games.
Pennsylvania’s Growth
Pennsylvania is the online casino revenue king in the U.S. In 2023, the state took in more than $2.1 billion.
Act 42 of 2017 paved the way for online casinos. The first apps went live in 2019, and now there are 21 licensed operators.
Taxes are steep—over 33% of adjusted gross revenue goes to the state. Every platform has to partner with an existing casino or racetrack, which keeps the old guard happy.
Pennsylvania’s results show just how much revenue potential regulated online casinos can have. It’s now outpacing New Jersey, even though it joined the game later.
West Virginia and Rhode Island Updates
West Virginia got into online casinos in July 2020, after passing legislation in March 2019. Seven licensed operators serve the state, including BetMGM and DraftKings.
The state’s rural population hasn’t stopped it from pulling in decent revenue. Partnerships with existing casinos and racetracks help share the wealth.
Rhode Island is the latest to join in. Bally’s launched its online platform with a soft opening on March 1, 2025, and went fully live a few days later.
The market there isn’t exactly competitive—Bally’s is the only online casino, just like its land-based monopoly. Still, both states show that online casino legalization can work, even in smaller or more rural places.
States Allowing Online Sports Betting Only
Plenty of states are fine with online sports betting but stop short of allowing other online gaming. Florida runs everything through tribal gaming compacts, Missouri just passed new laws, and some states stick with sports-only for their own regulatory reasons.
Florida: Launch and Regulatory Compacts
Florida rolled out online sports betting in November 2023, all through the Seminole Tribe’s Hard Rock Bet platform. The tribal gaming compact gives the Seminole Tribe total control over sports betting.
Players have to be physically in Florida to bet—the system uses geolocation to check. No exceptions.
Key Features of Florida’s System:
- Seminole Tribe monopoly
- Mobile-first, barely any retail locations
- 21+ age requirement for bettors
- Tax revenue is split between the tribe and the state
The compact faced some legal battles, but it’s still running. Florida doesn’t allow other online gaming like casino games or poker, unless you’re on tribal land.
Missouri’s New Sports Betting Law
Missouri finally legalized sports betting in 2023, after what felt like endless failed attempts in the legislature.
Online sports betting platforms officially launched in March 2024, and several operators jumped in right away.
But there’s a catch: bettors have to register in person at a casino before they can use any mobile apps.
That’s pretty unusual—most other states let you do everything online from the start.
Missouri Sports Betting Details:
- 21+ age requirement
- In-person registration required (at least for now)
- Multiple operator licenses available
- 10% tax on gross gaming revenue
Other online gaming options? Not happening here.
Casino games and online poker are still off-limits for Missouri residents unless they’re inside a physical casino.
Other Key Sports Betting States
Some states stick to sports betting when it comes to online gaming.
Iowa allows online sports betting but keeps other digital gambling locked up in licensed casinos.
Tennessee is a bit of an outlier—no physical casinos at all, just online sports betting since 2020.
Wyoming lets a handful of operators offer online sports betting, but hasn’t budged on other forms of online gaming since 2021.
Regulators in these states often point to simplicity and concerns about expanding gambling as the main reasons for their sports-only approach.
Emerging States Considering Legal Online Gaming in 2025
There’s a wave of states eyeing online casino legalization for 2025.
Maryland is feeling the heat from a $2.7 billion deficit, Virginia has its first iGaming bill, and Illinois is looking for ways to plug a $3.2 billion budget hole.
Maryland’s Legislative Progress
Maryland’s online casino push picked up speed after the House passed iGaming legislation in 2024.
That $2.7 billion deficit is hard to ignore, and it’s forced lawmakers back to the table.
Sen. Ron Watson and Rep. Vanessa Atterbeary are now pitching online casinos as an alternative to raising taxes.
Watson had said he wouldn’t file a bill in 2025, but the budget crunch changed his mind.
The attorney general insists iGaming needs a voter referendum, which is a headache.
Lawmakers are trying to argue that putting casino games online is just another way to offer what’s already legal, not an expansion.
The House wanted iGaming revenue to support the Blueprint for Maryland’s Future education program.
Maryland has six casinos, but two aren’t thrilled about the idea of online competition—cannibalization worries, as usual.
Chance of passage: 25%
Virginia’s Upcoming Prospects
Virginia’s dipping its toes into online casinos for the first time in 2025.
Sen. Mamie Locke introduced SB827, tying online casinos to the state’s five physical casino licenses.
The casino scene here is still pretty new—approved just five years ago, and only three out of five planned casinos have opened so far.
Cordish is a big player in Virginia and they’re dead set against online casino legalization wherever they have physical properties.
This kind of pushback isn’t new; it’s happened in other states too.
With such a young casino market, lawmakers might want to take things slow before diving into iGaming.
Virginia’s always been cautious about gambling expansion, so a quick win seems unlikely.
Chance of passage: 5%
Illinois and Indiana Initiatives
Illinois is staring down a $3.2 billion budget deficit for fiscal year 2026.
Gov. J.B. Pritzker told the Chicago Sun-Times iGaming is on the table as a way to help fill that gap.
Sen. Christina Castro and Rep. Edgar Gonzalez tried to get online casino bills heard in 2024, but they went nowhere.
Instead, lawmakers raised taxes on sportsbooks and video gaming terminals.
The video gaming terminal industry is a big obstacle—they’re not fans of online casinos, to put it mildly.
A possible compromise? Lawmakers might drop slots and focus on table games and live dealers.
Indiana hit pause on all gaming legislation in 2024 after a bribery scandal rocked the Statehouse.
The state has money problems too—Medicaid, education, transportation, you name it.
Indiana’s talked about iGaming since 2021, but Senate leaders keep slamming the brakes.
Online casino revenue could help, but only if they move past the current freeze.
Illinois chance of passage: 25%
Indiana chance of passage: 10%
States With Failed or Stalled Legalization Attempts
Some states just can’t seem to get online casino gaming off the ground.
Failed legislative proposals and political opposition keep tripping things up.
Social resistance and industry pushback are real hurdles that have stalled progress in many places.
Unsuccessful Bills and Referendums
Maine came close in 2024—LD1777 passed the Senate but lost in the House by just five votes (75-70).
That bill would’ve given tribal casino operators exclusive rights to offer online casino games.
There was a plan for a November referendum, but with the House vote, it never got that far.
Arkansas lawmakers dropped HB1861 after some early momentum.
The idea was to let current gaming licensees expand into online casinos.
Instead, the House Judiciary Committee sent it off for more study, and there’s no clear timeline for new proposals.
New Hampshire saw Senator Tim Lang’s SB 104 make it through the Senate in 2023, but it stalled in the House.
Lang is back with a new version, SB 168, for 2025.
The latest bill would require online operators to partner with existing charitable casinos.
Even with some committee support, its future in the House is shaky.
Political and Social Barriers
Union opposition is a huge stumbling block in states like New York and Illinois.
Casino worker unions worry that online competition will mean fewer jobs at brick-and-mortar casinos.
These groups lobby hard against online casino bills, arguing digital gaming puts real jobs at risk.
Moral and religious objections are a dealbreaker in conservative states.
Hawaii’s legislature, for example, pretty much shuts down any talk of gambling expansion.
SB 1507 faces strong pushback, even though the state could use the revenue.
Industry resistance is another snag.
In Illinois, video gaming terminal operators don’t want online casinos eating into their business.
These established industries have deep political connections and plenty of lobbying clout.
Key Legislative Trends for Online Gambling in 2025
States are sticking to familiar playbooks for online casino legalization, but they’re tinkering with licensing and tax models.
Revenue projections are the big motivator, with tribal partnerships and charitable casino tie-ins getting a lot of attention.
Model iGaming Legislation
Most 2025 online gambling bills are basically riffs on what works in New Jersey and Pennsylvania.
Lawmakers are borrowing proven frameworks instead of reinventing the wheel.
Massachusetts has three active bills, all with similar language.
Representatives Daniel Cahill and David Muradian are handling the House side, while Senator Paul Feeney is working on the Senate version.
Illinois filed companion bills HB 3080 and SB 1963 in February, mirroring previous efforts and using tax structures seen in other Midwest states.
Maine took a tribal exclusivity approach with LD1164, giving federally recognized tribes the sole right to run online casinos.
That model fell short in 2024 when the House voted it down.
New Hampshire is trying something different with SB 168, requiring online operators to team up with existing charitable casinos.
The idea is to protect current gaming venues while still letting digital options expand.
Licensing Structures and Monopolies
States are choosing between wide-open markets and limited licenses.
That choice matters a lot for both operators and players.
Michigan is all about competition—15 licensed apps, with both commercial and tribal operators free to partner with online gambling companies or run their own.
Rhode Island is the opposite: Bally’s has the only license for online casino play, launching its platform in March 2025.
Connecticut splits the difference with a dual-monopoly system.
Only two tribal authorities run online casinos, through deals with DraftKings and FanDuel.
A lot of states looking at 2025 legislation seem to prefer tribal partnerships.
That helps satisfy existing gaming compacts and keeps the market from getting too crowded.
Tribal exclusivity keeps popping up in proposals—it’s seen as less risky politically than opening the floodgates.
Taxation and Revenue Impacts
Tax rates are all over the map among states considering online casino legalization.
These rates make a big difference for both operator interest and state revenue.
Pennsylvania takes a big cut—over a third of operator revenue in taxes.
Still, the state brought in $2.1 billion in online casino revenue during 2023.
Michigan did $1.9 billion in 2023, thanks to a more operator-friendly tax setup.
The competitive market there keeps operators interested, even if profits per transaction are a bit lower.
Connecticut charges tribal operators 18% of gross gaming revenue through 2026, then bumps it up to 20%.
That gives the state steady, predictable growth.
New Hampshire’s SB 168 spells out tax revenue splits, with a portion going to charitable organizations.
That’s meant to calm fears from those already running gaming venues.
Illinois is still hashing out its tax approach.
Video gaming terminal operators are worried about competition and higher taxes if online casinos get the green light.
Honestly, revenue expectations are driving most of these bills.
Lawmakers see online casino taxes as easier money than raising traditional taxes.
Responsible Gambling Policies and Consumer Protections
States with legal online gaming put strict responsible gambling rules on licensed operators.
Every platform has to offer self-exclusion tools, spending limits, and access to problem gambling resources, all under the watchful eyes of state regulators.
Regulatory Requirements by State
Each state sets its own responsible gambling standards, but the basics are pretty consistent everywhere.
Licensed operators must have self-exclusion programs so players can ban themselves from gambling.
Exclusion periods vary—some just 24 hours, others permanent.
Deposit and spending limits are built into every legal platform.
Players can set daily, weekly, or monthly caps on deposits and losses.
Some states even require a cooling-off period before you can raise your limits.
Operators have to display responsible gambling messages and helpline info front and center, often during gameplay or when you register.
Age verification systems use government-issued IDs and Social Security Number checks to keep minors out.
Platforms can face serious penalties for letting underage players slip through.
State regulators do regular audits to make sure everyone’s playing by the rules.
Mess up, and you risk fines, suspension, or even losing your license.
Support Tools for Players
Legal online gaming sites offer a bunch of tools to help players stay in control.
These features aren’t optional—regulators require them.
Time limits let players set session lengths, with alerts when time’s up.
Some platforms even log you out automatically after a set period.
Reality checks send pop-ups showing how long you’ve been playing and how much you’ve spent, popping up at regular intervals.
Account statements give a full breakdown of deposits, withdrawals, wins, and losses.
It’s a way for players to track their own habits over time.
Problem gambling hotlines are easy to find on these sites, connecting players to counselors via toll-free numbers.
States often fund these services and make sure operators display them prominently.
Third-party exclusion is possible in some places—family members can request to block problem gamblers, though the process and rules vary by state.
Comparing Online Casinos and Sports Betting Markets
Sports betting has exploded since 2018, now live in 38 states and D.C.
Online casinos? Still just seven states.
These two markets are growing in very different ways and face their own sets of challenges.
Growth Patterns Across States
Sports betting has taken off almost everywhere it’s been legalized.
Arizona, for example, has racked up $7.8 billion in total handle since September 2021.
Illinois scrapped its in-person registration rule in March 2022, and online participation shot up.
Most states launch with anywhere from 10 to 20 online sports betting operators.
Colorado’s got 20, Kansas limits it to six, and Indiana allows up to 40 online sportsbooks.
Online casinos are crawling by comparison.
Only Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia have legal online casino gaming.
Connecticut rolled out both sports betting and online casinos at the same time in October 2021, but there are just three online casino operators there.
The usual pattern? States go for sports betting first, then maybe think about online casinos later.
It’s just easier to get sports betting through the regulatory process than full-scale online casino gaming.
Unique Challenges for Each Market
Online sports betting doesn’t run into as many regulatory walls, but let’s be honest, integrity issues are always lurking. States end up needing to team up with pro leagues and set up some kind of monitoring—sometimes it feels like a cat-and-mouse game. And then there are states that limit college betting or want everyone to sign up in person at first, which can be a headache.
Online casinos? They’ve got it even tougher. Existing casino operators often push back, and the licensing process is anything but simple. These platforms have to nail down advanced age checks, responsible gaming features, and game fairness testing that’s stricter than what sports betting usually faces.
Both industries have their hands full with geolocation tech and payment hurdles. But online casinos get hit with extra layers—like making sure every game type gets approved and dealing with jackpot rules that sports betting just sidesteps.
Future Outlook for Online Gaming Legalization
Right now, a bunch of states are working on online gambling bills, and some of those are inching forward in 2025 committees. The market’s got a lot of room to grow, especially as new tech keeps shaking things up.
Expected Legislative Changes Post-2025
There are several states with bills on the table that could open up online gambling beyond the current nine that allow it. Illinois is front and center, with HB 3080 and SB 1963 getting real support—Governor JB Pritzker seems pretty keen on using online casinos to boost state revenue.
Massachusetts is picking up steam, too. Three bills are in play, with Representatives Daniel Cahill and David Muradian working on House versions, and Senator Paul Feeney pushing things along in the Senate.
New Hampshire actually looks like it might cross the finish line soon. SB 168 got good committee feedback, and it’d have operators partner up with the state’s charitable casinos.
Maine and New York are giving it another go, reintroducing earlier proposals. Maine’s LD1164 would hand exclusive rights to tribal operators, while New York’s Senator Joseph Addabbo is back with his annual online casino bill.
But it’s not all smooth sailing. These states are running into the usual walls: resistance from current gaming businesses, and plenty of squabbling over taxes. In Illinois, for example, video gaming terminal operators are worried about online casinos eating into their profits.
Projected Market Expansion
The U.S. online gambling scene keeps getting bigger. States with legal markets are pulling in billions. Pennsylvania, for instance, hit $2.1 billion in 2023, and Michigan wasn’t far behind at $1.9 billion.
Industry folks are saying the online sports betting market alone could hit $24.8 billion by 2028. That’s not even counting online casino revenue, which, let’s face it, often outpaces sports betting where both are legal.
New Jersey is still the wildest ride, with 30 licensed online casino operators battling it out. It’s a pretty clear example of how much money can flow in when there’s real competition.
States that have gone legal are seeing hefty tax hauls. Pennsylvania, for example, takes more than a third of operator revenue through taxes. That kind of money is hard for other states with budget gaps to ignore.
But here’s the thing: all this growth depends on state laws, not anything happening at the federal level. Each state sets up its own fenced-in market, so players are basically locked to wherever they’re physically located.
Technological Innovations in Online Gambling
Live dealer technology keeps getting better, especially with high-definition streaming and more interactive features. Players can chat with dealers and even other folks at the table during real-time sessions—it’s almost like being there, but, you know, from your couch.
Mobile optimization? That’s pretty much where the action is these days. Operators are pouring their energy into smartphone apps instead of desktop platforms, clearly chasing the wave of mobile-first gamers.
Virtual reality and augmented reality are popping up as experimental tools for online casinos. Imagine slipping on a headset and feeling like you’re actually walking around a casino floor—it’s wild to think how close we might be to that.
Artificial intelligence is quietly making things safer, too. With pattern recognition and automated nudges, AI can spot risky gambling habits and even nudge players to take a break if things get out of hand.
Cryptocurrency is still a bit of a gray area, honestly. Regulatory headaches keep most operators sticking to old-school payment options, though a few are poking around with blockchain for quicker transactions.
Geolocation tech is another piece of the puzzle. Advanced GPS and IP checks help operators stay on the right side of state lines, keeping things legal without making the user experience a hassle.
