Experts Predict More States Will Legalize Online Gambling as Revenue Potential Grows

The iGaming sector in the United States is not just thriving, it’s exploding with growth. Since the game-changing Supreme Court ruling in 2018 that overturned the federal ban on sports wagering, states have been quick to pass online gambling laws, catapulting the digital casino sector into one of the fastest-growing industries. Recent figures show that the U.S. online gambling market was valued at over $2.2 billion in 2022 and is set to skyrocket to $7 billion by 2026. Beyond sports betting, online casinos have emerged as major players, offering a variety of games like poker, blackjack, roulette, and slot machines, all at your fingertips via smartphone or computer.

iGaming in the USA: Legal Status in 2025

Prior to examining future developments, let us assess the current status of online casinos in the United States as of April 2025, as the legality of playing at online casinos is contingent upon your state of residence.

In which jurisdictions have online casinos been legalized?

Legal in certain states: New Jersey, Delaware, West Virginia, Pennsylvania, Michigan, Rhode Island, and Connecticut.

In these jurisdictions, online casinos are comprehensively regulated and legal. They feature prominent entities such as FanDuel Casino, BetMGM Casino, and PokerStars Casino, which provide their services to gamers in these areas.

Illegal in most states: Legal internet casinos are not accessible in several states, including significant ones such as California and New York; nonetheless, it is crucial to acknowledge that the legal framework is diverse and always changing.

As we anticipate the remainder of 2025, the iGaming sector is rife with conjecture on which states may proceed to legalize online casinos.

Despite the growing momentum in several states, especially in a non-election year, the path ahead is fraught with legal and political hurdles. The future of the United States’ iGaming will undoubtedly revolve around the online industry, but the road to widespread legalization is far from clear.  

Experts Predict iGaming Will ‘Take Over’

Steve Bittenbender, one of the many casino experts from Gambling.com, recently discussed how online gambling technology is the future of gaming in the United States. 

“That’s just how capitalism works,” Bittenbender said. “It’s inevitable that iGaming is going to take over.”

On the contrary, Bittenbender did highlight how the legalization of online casinos across more states won’t happen anytime soon:

“But you’re probably going to see a whittling down of the number of brick-and-mortar operators as online gaming becomes more robust. The question is, when is that tipping point? When does this happen? It probably doesn’t happen at least until the end of this decade, if not longer.”

The concerning damage to smaller casino resorts

While iGaming often produces greater tax revenue than sports betting in jurisdictions where both are permitted, executives at physical casinos have voiced apprehension that patrons may forgo visiting traditional resorts if they can access games such as slots and craps via their mobile devices from any location. Bittenbender stated that Unions representing casino staff also oppose iGaming due to concerns over potential job losses.

“Does it hurt the smaller [resort] operators that may be relying on people to come to their casino, whether or not it’s just to play or to eat and to watch a show?” Bittenbender added. “That’s the rub right now.” 

US iGaming Will Expand, But Not This Year

The prospect of expanding online casino legalization in the United States is almost guaranteed in the long term, based on the revenue projections from the current seven legalized states alone. However, as Bittenbender and other industry experts have highlighted, online casino legalization in 2025 is improbable. This year may provide essential political and legal foundations; however, the trajectory toward iGaming legalization has traditionally progressed at a sluggish rate, and no state seems poised for an immediate transition.

Which state will follow the current seven, even if not in 2025? In many aspects of life, the answer can be found when you chase the money.

 States facing fiscal shortfalls, especially during the post-COVID economic downturn, and those already adopting online sports betting are the most probable candidates. Given the existing digital gaming frameworks and the growing push to enhance tax income, the licensing of online casinos may eventually become irresistible for several governments.