- iGaming available in seven states: As of 2025, iGaming is available in seven states. Rhode Island was the most recent to launch in March 2024, joining CT, DE, MI, NJ, PA, and WV.
- NY the biggest potential market: Five states have active proposals to legalize online casino gaming: IL, MA, ME, NH, and NY. Efforts persist in several other states, including Arkansas, Hawaii, and Maryland.
- iGaming sees a 34.7% YoY revenue increase: For January 2025, the American Gaming Association’s commercial gaming revenue tracker tallied $827.2 million in iGaming GGR, a 34.7% increase over Jan. 2024.
🇺🇸 Interactive map of US casino bills
🗳️ Bills to legalize iGaming in 2025
Online casino gambling is currently available in seven states. Four of the legal states have open markets that feature multiple operators for users to choose from, while offerings are much more limited in the other three states.
Efforts to legalize online casino gambling continue in several other states, but it tends to be a long and arduous process. Using New York as an example, there have been annual efforts to regulate iGaming since sports betting was legalized in 2022. All of the efforts have fallen flat. Senator Addabbo continues to push the initiative forward, seeking to align public interest with the concerns of the opposition. In a recent interview with Comped, he said, “I don’t know what governor … would want a billion dollars just to leave their state,” urging Gov. Hochul to lead talks amid fiscal and public health concerns.
There is optimism for Senate Bill S2164 that was introduced this year. It proposes up to 31 licenses for commercial casinos, tribal venues, and independent operators, and sets a 30.5% tax rate on casino revenue. The bill remains in committee and has yet to advance to a floor vote.
A similar story has been unfolding in Illinois, with bills failing in committee over the last few years. Senate Bill 1963 and House Bill 3080 are now under consideration. The bills would give a green light to allow online slots, poker, and table games, with a proposed 25% tax rate on revenue. They have yet to advance out of committee.
Active proposals are also in progress in Maine, Massachusetts, and New Hampshire, while several other states are ramping up efforts. The below table summarizes where things stand with the most substantive efforts to make online casino gambling a reality.
| State | Bill | Details | Status |
|---|---|---|---|
| Illinois | HB 3080 – Gonzalez Jr. SB 1963 – Castro, Belt, Koehler | Creates the Internet Gaming Act. Authorizes an Internet gaming operator to offer Internet gaming in accordance with the provisions of the Act. | HB 3080 – Re-referred to Rules Committee – March 21, 2025.SB 1963 – Referred to Assignments – Feb. 6, 2025. |
| New York | S 2164 – Addabo Jr. | Authorizes interactive gaming and interactive lottery gaming in the state of New York. | Referred to racing, gaming, and wagering – Jan. 21, 2025 |
| Maine | LD 1164 – Rana, Moore, Dana, Macias, Mingo, Roeder, Sato, Hickman, Talbot Ross | An act to create economic opportunity for the Wabanaki Nations through internet gaming. | Reference to the Committee on Veterans and Legal Affairs suggested and ordered printed – March 20, 2025. |
| Massachusetts | H 332 – CahillS 235 – Feeney | An Act regulating internet gaming. | Referred to Joint Committee on Consumer Protection and Professional Licensure – Feb. 27, 2025. |
| New Hampshire | SB 168 – Lang, Innis, Pearl, Murphy | Regulating online gambling and directing net proceeds to the education trust fund, the general fund, and to reimburse municipalities for elderly, disabled, blind, and deaf tax exemptions. | Laid on table with NH Senate Ways and Means Committee – March 6, 2025. |
| Arkansas | HB 1861 – Duffield, Scott, Ferguson, Allen, Barnes, McGruder, Perry, Richardson | To Make Operation Of An Illegal Online Casino Or Sports Betting A Felony; To Create The Interactive Gaming Act; To Regulate Internet Gaming And Include Name, Image, Or Likeness Games And Gaming; And To Declare An Emergency. | Recommended for study in the Interim by the Committee on Judiciary Committee- House – April 7, 2025. |
| Hawaii | SB 1507 – Kouchi | Establishes the Hawaii Lottery and Gaming Corporation for the purpose of conducting and regulating wagering and gaming in the State. Establishes the Lottery and Gaming Special Fund and allocates certain percentages of the fund to various community betterment purposes. | Referred to EDT, JDC/WAM – Jan. 27, 2025. |
| Indiana | HB 1432 – Manning, Criswell, Moed, Bartels | Various gaming matters, including “Authorizes the following persons to conduct interactive gaming: (1) A licensed owner of a riverboat. (2) An operating agent operating a riverboat in a historic hotel district. (3) A permit holder conducting gambling games at the permit holder’s racetrack. (4) An Indian tribe that meets certain requirements.” | Recommitted to Committee on Ways and Means pursuant to House Rule 126.3 – Jan. 29, 2025. |
| Maryland | HB 17 – AtterbearySB 340 – Watson | Authorizing the State Lottery and Gaming Control Commission to issue certain licenses to certain qualified applicants to conduct or participate in certain Internet gaming operations in the State; requiring the Commission to regulate Internet gaming and the conduct of Internet gaming in the State; requiring an Internet gaming licensee to require individuals to provide proof of the registration in order to participate in Internet gaming; etc. | HB 217 – In the House – Hearing 2/10. SB 340 – In the Senate – Hearing 1/29 |
| Ohio | SB 312 – Antani | To legalize and regulate internet casino gaming in this state, to modify the law governing online sports gaming, and to levy a tax on businesses that provide internet casino gaming. | Referred to committee – Nov. 12, 2024 |
| Virginia | SB 827 – Locke | Internet gaming is prohibited except when offered by an Internet gaming operator licensed pursuant to the provisions of this article. Any authorized Internet gaming shall comply with the provisions of this article and any regulations promulgated by the Board related to Internet gaming. | Referred to the Committee on General Laws and Technology. Prefiled and ordered printed – Dec. 31, 2024. |
Opposition to online casino gambling takes various forms. There are concerns from land-based casinos and tribal operators that online casinos would dramatically impact their business models. Beyond the fears of cannibalization, opponents and legislators often point to economic and cultural factors, including the fear of a spike in gambling addiction among online players.
Among the many counter-arguments is the prevalence of gaming in many forms elsewhere. Between the aforementioned land-based casino options, there are state-run and online lottery, legal sports betting in numerous states, plus newer developments such as prediction markets and sweepstakes casinos.
In short, those who are interested in gambling have an increasing number of options to choose from. A legal and regulated online casino market for each state not only expands the list of options, but also generates additional tax revenue for state coffers and provides protection and regulation for players.
🟢 iGaming operators and legal markets
The table below lists the currently available operators and their respective markets.
| Operator | Owner | Available in |
|---|---|---|
| BetMGM | MGM Resorts International, Entain Holdings (NYSE: MGM) | MI, NJ, PA, WV |
| Caesars | Caesars Entertainment, Inc. (CZR) (NASDAQ: CZR) | MI, NJ, PA, WV |
| DraftKings | DraftKings Inc. (NASDAQ: DKNG) | CT, MI, NJ, PA, WV |
| FanDuel | Flutter Entertainment (NYSE: FLUT) | CT, MI, NJ, PA, WV |
| Bally’s | Flutter Entertainment (NYSE: Bally’s) | NJ, PA, RI |
| Fanatics | FBG Enterprises Opco, LLC. | MI, NJ, PA, WV |
| BetRivers | Rush Street Interactive (NYSE: RSI) | MI, NJ, PA, WV |
| Golden Nugget | DraftKings Inc (NASDAQ: DKNG) | MI, NJ, PA, WV |
| PokerStars | Flutter Entertainment (NYSE: FLUT) | MI, NJ, PA |
| Hollywood | Penn Entertainment (NASDAQ: PENN) | MI, NJ, PA |
| Play Gun Lake (BetParx) | Match-E-Be-Nash-She-Wish Band of Pottawatomi Indians | MI |
| FireKeepers | Nottawaseppi Huron Band of Potawatomi | MI |
| Four Winds | Pokagon Band of Potawatomi Indians | MI |
| SI Casino | Evoke plc | MI |
| Eagle Casino | Saginaw Chippewa Indian Tribe | MI |
| Horseshoe | Caesars Entertainment (NASDAQ: CZR) | MI, NJ, PA, WV |
| bet365 | Bet365 Group (private) | MI, NJ, PA, WV |
| BetOcean | Ocean Casino Resort | NJ |
| BetParx | Greenwood Gaming and Entertainment, Inc. | NJ, PA |
| Betway | Super Group (NYSE: SGHC) | NJ |
| Borgata | MBetMGM LLC. (NYSE: MGM) | NJ, PA |
| Hard Rock | Hard Rock International and Seminole Tribe of Florida | NJ |
| Harrah’s | Caesars Entertainment (NASDAQ: CZR) | NJ |
| Jackpocket | DraftKings Inc (NASDAQ: DKNG) | NJ |
| Jackpot City | Super Group (NYSE: SGHC) | NJ, PA |
| Mohegan Sun | NJ: Boyd Gaming (NYSE: BYD). PA & CT: Mohegan Digital | NJ, PA, CT |
| Monopoly | Bally’s Corporation (NYSE: Bally’s) | NJ |
| Party Casino | Entain plc | NJ |
| PlayStar | PlayStar Gaming Group AB | NJ |
| Resorts | Boyd Gaming (NYSE: BYD) | NJ |
| Stardust | Boyd Gaming (NYSE: BYD) | NJ, PA |
| Tropicana | Caesars Entertainment (NASDAQ: CZR) | NJ, PA |
| Wheel of Fortune | MGM Resorts International (NYSE: MGM) | NJ |
| Spin Palace | Super Group (NYSE: SGHC) | PA |
| PlayLive | Cordish Gaming Group | PA |
| SugarHouse | Rush Street Interactive (NYSE: RSI) | PA |
| Wind Creek | Wind Creek Hospitality | PA |
| Betly | Delaware North | WV |
| Delaware Park (BetRiivers) | Clairvest Group and Rubico Gaming LLC | DE |
| Bally Dover Downs (BetRivers) | Gaming and Leisure Properties | DE |
| Harrington (BetRivers) | Harrington Raceway | DE |
💡 How it works: Licensing and tax model
The exact rules and requirements for online casino licensing vary by jurisdiction. In general, there’s a lengthy application process in which the entity has to provide extensive documentation, including information on the corporate structure, business plans, and proof of financial stability.
Prior to approval, the licensing body conducts a full background check on the company and stakeholders. There’s also a full audit of both financial and technical information to confirm that the entity will be in compliance.
Applications are approved or denied at the discretion of the regulatory body. Those who are approved have to adhere to ongoing compliance with regulations and are subject to annual review. Licensing fees and tax rates for online casinos vary by legal state.
| State | Licensing fees | Online casino tax rate |
|---|---|---|
| Michigan | A $50,000 application fee for an internet gambling operator license.An initial license fee of $100,000.An additional $50,000 per year thereafter. | Tax rate varies according to adjusted gross receipts: 20%: Less than $4 million22%: $4 to less than $8 million24%: $8 million to less than $10 million26%: $10 million to less than $12 million28%: $12 million or greater |
| New Jersey | Not less than $200,000 for a casino license or a casino license resubmission;Not less than $400,000 for an initial Internet gaming permit; Not less than $250,000 for the renewal of an Internet gaming permit; A $250,000 Responsible Internet Gaming Fee upon the filing for an initial or renewal of an Internet gaming permit; | 15% of gross revenue |
| Pennsylvania | Interactive gaming operators must pay a license fee varying from $4 million to $10 millionA renewal fee of $250,000 after five years. | Tax rate varies by gaming category: Online Slot Machines: 54% tax rate on gross gaming revenue.Online Table Games (non-peer-to-peer): 16% tax rate on gross gaming revenue.Online Poker (peer-to-peer): 16% tax rate on gross gaming revenue. |
| West Virginia | An initial licensing fee of $250,000.A $100,000 renewal every five years. | 15% on online casino revenue |
| Connecticut | An initial licensing fee of $250,000.An annual renewal fee of $100,000. | 18% of gross gaming revenue for the first five years. Increases to 20% thereafter. |
| Delaware | Not open to outside commercial operators. The state’s three racetrack casinos are authorized to offer online casino gaming. There is no separate or specific licensing fee for their online casino operations.Companies that provide the technology and gaming systems for Delaware’s online casinos must pay a $4,000 initial license fee that’s valid for two years, plus a $4,000 renewal fee for each subsequent three-year period. | A portion of their online gaming revenue is shared with the state.There is no published or fixed online casino tax rate.Revenue sharing is determined by agreements with the Delaware Lottery. |
| Rhode Island | The state has granted exclusive rights to Bally’s Corporation.There is no published or specific licensing fee for online casino operators,Any gaming vendor must pay a $750 non-refundable application fee for both initial applications and renewals. | The state employs a revenue-sharing model, with a 51% tax rate on gross gaming revenue for iGaming. |
📊 Tax implications on winnings
Winnings on casino gaming are fully taxable. Whether you’re playing online or in-person at a land-based casino, you’re required to report your winnings on your tax return. Casino operators such as BetMGM and Caesars may send out 1099-MISC forms that report your earnings.
Receipt of such a form serves as a clear sign that you have a tax obligation. Whether you receive the form or not, it’s on you to report your online casino earnings. If you fail to do so, you could open the door to potential headaches such as penalties, interest, or even an audit.
For casino players, the best advice is to carefully track your wins and losses and keep documentation of the ins and outs of your accounts. Consulting with a tax professional for guidance and reporting on gambling winnings is highly recommended.
⚖️ Background on legal iGaming and online casinos
When the internet came to the forefront in the 1990s, it wasn’t long before online gaming was offered to the masses. Offshore and overseas operators emerged, and US residents began to play. There was no federal law that specifically addressed online gambling, leading to a legal grey area.
The Unlawful Internet Gambling Enforcement Act of 2006 changed that. It did not expressly prohibit online gambling, but it did prohibit financial institutions from processing transactions related to it. That served as enough of a roadblock to prevent further growth.
Many offshore sites continued to operate and serve US players. The Department of Justice got involved and seized the domains of major online poker sites in 2011, freezing player funds in the process. The day of action came to be known as “Black Friday” in gaming circles and effectively forced most operators out of the US.
As the hysteria subsided, the DOJ clarified that the Wire Act only applied to sports betting. This essentially opened the door for states to legalize and regulate online casino gaming. Nevada, Delaware, and New Jersey took the ball and ran with it in 2013, legalizing and regulating online casino and poker games.
The floodgates haven’t opened all that much since then, but the following states now permit online casino gaming:
- Michigan (2021)
- Pennsylvania (2019)
- West Virginia (2020)
- Connecticut (2021)
- Rhode Island (2024)
By comparison, sports betting has been a state matter since 2018. It’s now available in at least some form in 38 states plus Washington, D.C. Efforts to increase the number of legal online casino states continue, with Illinois and New York among those with active proposals on the table.