The Legality of Real Money Online Casinos Across the U.S.

Real-money online casinos have become the go-to for many players across the world. After all, not only do they offer entertainment, but they also provide players with a chance to make money. What’s more, real money online casino sites are accessible around the clock and feature tons of games. However, while many regions may be clear about their stance on these sites, the U.S. remains fragmented when it comes to their legality. We explore the states where these casinos are legal and explain the nuances of their legality across the country.

Are Real-Money Casinos Legal in the U.S.?

If you were to ask whether real-money casinos were legal in the U.S., you would get differing answers ranging from yes to no. In truth, the legality of these sites is not standard and instead comes down to each state’s legislation. As things stand, these sites are only legal in seven states, as follows:

1. Delaware: As the first state to open its doors to online operators, Delaware set the pace for this market. Residents can enjoy all sorts of games from roulette to slots, and those who cash in wins are subject to taxes at the state and federal levels. Operators, too, pay taxes, averaging 43% of their gross revenue.
2. New Jersey: Since 2013, this state has allowed players to engage in all sorts of games, from slots to blackjack and roulette. With a 15% tax on gaming revenue and additional taxes on player winnings, the state is laughing all the way to the bank, as are the players and the operators. 
3. Pennsylvania: Five years after the first state welcomed online gambling, this state threw its hat into the ring. With a 54% tax rate on slots and a whopping 16% on other games, the state has benefited greatly from online operators. But players also get to have a piece of the pie as they can enjoy a wide variety of games, including live dealer games.
4. West Virginia: In 2019, the lawmakers in this state saw it fit to allow their residents to enjoy online games. And with options like poker and roulette in tow, residents were more than happy to sign up on online casinos. While this market may not be as big as Pennsylvania, it has grown quite fast. Much of this growth owes to the favorable tax rates, which average 15% of the gross revenue.
5. Michigan: While this state joined the party in 2021, it has made incredible strides in this market, making it one of the fastest growing and profitable markets for operators. The state imposes taxes ranging from 20% to 30% on the operators and also subjects players to taxes on their winnings. With these favorable rates as well as a conducive legal environment, this market is one to watch in the coming years.
6. Connecticut: At the same time that Michigan was making a play at expanding its revenue sources, Connecticut was also legalizing online casinos. Operators were able to introduce games like slots and blackjack to an eager audience. And with taxes averaging 18% of their revenue, they have been able to rake in high profits and offer even more value to their audience.
7. Rhode Island: This state may be new to the game, having legalized online casinos in 2024, but it is clear that it is here to make this late entry count. For one, it imposes a reasonable 20% tax on the gaming revenue, which enables operators to turn a good profit. Secondly, the laws are favorable to both the players and the operators. Projections thus show that this market will grow quite fast, making it a viable option for operators looking to enter the US market.

Other states, having seen just how lucrative online casinos can be in generating revenue through taxes, are also considering similar moves. While there are concerns regarding the possibilities of gambling dependence among vulnerable populations, the above states have proven that such risks can be mitigated through reasonable licensing requirements. As such, talks are underway in states like New York, Illinois, Nevada, Maryland, and Indiana – residents are hopeful that they will bear fruit.