As the landscape of online gambling in the United States continues to evolve, several states are poised to consider the legalization of online casinos in 2025. Currently, seven states—Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia—offer legal online casino gaming. The potential expansion into additional states could significantly impact the industry, state economies, and consumer experiences.
Massachusetts has been gradually expanding its gambling landscape. In March 2023, the state legalized online sports betting, marking a significant step toward embracing digital gambling platforms. State Representative David Muradian, a Republican recently re-elected to the Massachusetts House of Representatives, has indicated plans to introduce a bill to legalize online casino gambling in early 2025. Muradian, who serves on the National Council of Legislators from Gaming States (NCLGS), believes that legalizing online casinos is the next logical step for the state. The recent legalization of online casino gambling in nearby Rhode Island may also hasten this development.
Facing a substantial budget deficit projected to reach $4.3 billion, New York is exploring new revenue streams, including the potential legalization of online casino gambling. Senator Joseph Addabbo, chairman of the Senate Committee on Racing, Gaming, and Wagering, has been a persistent advocate for iGaming in the state. Despite resistance from key figures, including Governor Kathy Hochul, the pressing financial challenges may prompt a reevaluation of online casino legalization in 2025.
Indiana has shown interest in online casino legalization in recent years. In January 2024, Republican State Representative Alan Morrison introduced House Bill 1048, aiming to legalize online casino gambling. Although the bill did not gain significant traction, data from the Indiana Gaming Commission indicates that the state is missing out on approximately $100 million in monthly revenue by not legalizing online casinos. This potential loss may motivate legislators to revisit the issue in 2025.
Maryland has been actively discussing the expansion of its gambling industry to include online casinos. In April 2024, the House passed a bill to legalize online casino gambling; however, it did not advance in the Senate. Given the state’s projected budget deficits over the next five years, there is a growing debate over taxes and the economy, which may lead to renewed efforts to legalize online casinos in 2025. Del. Vanessa Atterbeary, the House Ways and Means Committee chair, has expressed openness to reintroducing online casino legislation in the upcoming session.
Ohio has been exploring the possibility of expanding its gambling offerings to include online casinos. In early September 2024, outgoing State Senator Niraj Antani filed Senate Bill 312, aiming to legalize online casino gaming. While the bill is unlikely to advance in the current session, a legislative task force has been studying how gambling should grow in the state, including online casino gaming. The hearings throughout 2024 are setting the stage for potential legislative action in 2025.
Maine has made significant strides toward legalizing online casinos. In April 2024, the Maine Senate passed LD 1777, a bill to create a regulated system for iGaming play. However, the bill fell short by five votes in the House. The proposed legislation would have given control of the gambling vertical to federally recognized tribal communities within Maine. The progress made in 2024 indicates that Maine may revisit online casino legalization efforts in 2025.
Wyoming is preparing to reignite efforts to legalize online casinos in 2025. State Representative Robert Davis has announced plans to reintroduce online casino legislation in the upcoming legislative session. This announcement follows a study highlighting the potential benefits of legalizing the industry in Wyoming, including increased revenue and consumer protections.
To assist states considering the legalization of online gambling, the National Council of Legislators from Gaming States (NCLGS) has proposed model legislation. The proposal includes a suggested tax rate of 15% to 25% on internet gambling revenue and a ban on credit card deposits. This framework aims to provide a starting point for states to develop their own regulations, incorporating successful practices from states like New Jersey. The model legislation emphasizes strict oversight to protect consumers, including deposit limits and the establishment of regulatory agencies where none exist.
The potential legalization of online casinos in these states carries significant economic implications. For instance, New Jersey’s 13% tax on online sports betting and 15% tax on online casino games brought in over $414 million in tax revenue in the previous year. As states face budget pressures, the substantial revenue generated from online gambling presents an attractive solution to fiscal challenges.
Industry leaders are optimistic about the expansion of online gambling in the United States. Jason Robins, CEO and co-founder of DraftKings, predicts that 2025 will be a significant year for iGaming growth. He notes that while 2024 was an election year, making it challenging to pass gaming bills, the upcoming year presents opportunities for legislative advancements in online casino legalization.
As 2025 approaches, several U.S. states are actively considering the legalization of online casinos. Factors such as budget deficits, potential revenue generation, and evolving public attitudes toward online gambling are driving these discussions.
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December 29, 2024
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