As of 2025, the legalization process of online casinos in the United States remains slow, although 40 states have opened up sports betting, only seven states have truly legalized real money online casinos. Leading global gambling operators such as FanDuel, DraftKings, and BetMGM have established sports betting markets in most states and are focusing on expanding their iGaming territories.
Seven States with Legal Online Casinos
1. New Jersey, as one of the first states to open online casinos, launched iGaming in 2013 and now has over 20 online casino operators. The state adopts a dual regulatory model, with operators paying a 15% gambling tax and an additional alternative tax (2.5%-5%).
2. Pennsylvania, since launching iGaming in 2019, is one of the top three states in terms of revenue. The tax rate for slot machines is as high as 54%, and for table games, it is 16%. There are 19 online casino apps in the market.
3. Michigan legalized iGaming in 2021, currently has 12 tribal and 3 commercial casinos operating iGaming, with tax rates up to 28%. Well-known platforms such as BetMGM, FanDuel, and DraftKings provide services.
4. Connecticut went online in 2021, operated by two tribes with DraftKings and FanDuel. The initial tax rate was 18%, later rising to 20%.
5. Delaware, the first state in the US to launch iGaming in 2013, is regulated by the state lottery. Operators face high tax rates, with video lottery taxes at 52.5%.
6. West Virginia has been operating iGaming since 2020, with a license period of five years, an application fee of $250,000, and a tax rate of 15%.
7. Rhode Island launched live dealer iGaming in 2024, operated by Bally's live casino. Currently, only live dealer services are offered, with tax rates of 61% for slots and 15.5% for table games.
States That May Legalize in the Future
New York: Despite the boom in online sports betting, iGaming is still hindered by union resistance and legislative progress. Legislation has been postponed until after 2025.
Indiana: Affected by past bribery scandals, iGaming legislation is suspended in 2024, expected to restart in 2025 or later.
Maryland: Requires a voter referendum, with the earliest advancement expected in 2026, currently still in the legislative preparation stage.
Conclusion
Although the legalization of online casinos in the US is progressing slowly, the successful experiences of seven states show that iGaming has sustainable development potential. With technological advancements, changes in public attitudes, and financial pressures, more states are expected to join the legalization ranks within the next three years.
