US iGaming Expansion: More States Consider Online Casino Legalisation in 2025
Legislative activity around iGaming legalisation continued to build across multiple US states in 2025, with Illinois, Indiana, New York, Maryland, and other states debating online casino legislation as the New Jersey, Pennsylvania, and Michigan success stories provided a strong economic evidence base.
Key Takeaways
- Multiple US states debated iGaming (online casino) legalisation legislation in 2025
- Illinois, Indiana, New York, Maryland, and Georgia were among states with active iGaming legislative discussions
- New Jersey, Pennsylvania, and Michigan — the three largest iGaming states — provided successful case studies for expansion advocates
- iGaming generates higher margins than sports betting and was increasingly valued by states for revenue generation
- Online casino sceptics raised concerns about gambling harm expansion; advocates cited consumer protection advantages of licensed platforms vs. offshore sites
- Each additional iGaming state potentially adds hundreds of millions of dollars in annual licensed operator revenue
Why It Matters — Players
Why It Matters — Operators
Legislative activity around online casino (iGaming) legalisation continued to build across multiple US states in 2025, as the established success of markets in New Jersey, Pennsylvania, Michigan, Connecticut, West Virginia, and Delaware provided a growing body of evidence for state legislators, revenue officers, and regulators evaluating the economic case for legalising regulated online gambling.
The Case for iGaming Expansion
The primary argument made by iGaming expansion advocates is that regulated online casino gaming generates substantial tax revenue, creates consumer protection advantages over the offshore and illegal markets that currently serve players in non-iGaming states, and — when deployed alongside responsible gambling frameworks — can be managed to minimise harm. The New Jersey market, which has been operating regulated iGaming since 2013, provides over a decade of data on the performance of a licensed market including revenue growth, consumer protection effectiveness, and employment impact.
States with Active Legislative Discussions
Illinois: Illinois has been one of the most discussed potential iGaming states, given its large population (Chicago is the third most populous US city) and the state's existing sports betting framework. The Illinois Gaming Board would oversee online casino licensing if legislation passed. The potential tax revenue from Illinois iGaming was frequently cited in legislative discussions, though concerns about the societal impact of expanding gambling access were also part of the debate.
Indiana: Indiana, which launched sports betting in September 2019 and has built a mature mobile sports betting market, was among the states where operators and advocates lobbied for iGaming legalisation. The Indiana Gaming Commission provides an established regulatory body for any iGaming expansion.
New York: New York's existing online sports betting market — launched in January 2022 with a 51% GGR tax rate that generated substantial state revenue — provided context for iGaming discussions, though the state's high sports betting tax had created a cautionary precedent about tax rate design.
Maryland: Maryland, which launched mobile sports betting in November 2022, also saw ongoing discussions about iGaming.
The Offshore Market Alternative
A consistent argument made by iGaming advocates in states without licensed markets is that players in those states do not stop playing online casino games — they simply use offshore, unlicensed platforms that pay no US taxes, operate without consumer protections, and do not contribute to state-mandated responsible gambling programmes. Legalised iGaming, advocates argue, channels this existing activity into a licensed, taxable, consumer-protected framework.
- Source:
- PlayUSA
- Published:
- April 1, 2025
- Original Article:
- View Source
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