Online gambling is currently only legal in seven U.S. states. Black market gambling may exist in other states but playing at illegal casinos is risky. Some other states like New York are slowly moving closer to legalizing online gambling.
States where online gambling is legal
Real money online casino gambling is only legal in New Jersey, Pennsylvania, Michigan, Connecticut, Delaware, West Virginia, and Rhode Island. Rhode Island was the last state to legalize online gambling. In these states, players can play casino games at licensed and regulated online casinos.
Licensed casinos must abide by the rules and regulations set by the state gambling board. For example, Michigan online gambling is regulated by the Michigan Gaming Control Board (MGCB). The Wolverine state legalized online gambling in 2021 and ranked fifth among all states in overall gaming revenue by 2023.
Ohio
Senator Niraj Antani introduced SB 312 in September 2024. It aims to legalize online casinos and online lottery in the state. If it passes, Ohio will join the other seven states that have legalized online gambling. Ohio currently has four brick-and-mortar casinos but doesn’t allow online casinos for real money. The bill proposes a 15% tax on gross gaming profits.
Opposition to online gambling is strong in the state. Governor Mike DeWine would rather increase the tax on sports betting than see online casinos in Ohio. One of the fears is that legalizing online casinos would negatively affect the revenue of brick-and-mortar casinos.
New York
New York was moving towards real-money gaming in 2023. Legislation ground to a halt just as momentum was building. Bills introduced by Senator Joseph Addabbo Jr. and Assemblyman J. Gary Pretlow fell flat. However, they remain confident about the future prospects of online gambling in New York. Senator Addabbo says that New Yorkers are already gambling online but that the state isn’t benefiting from it.
Some New Yorkers may live a luxurious lifestyle but many are at the opposite end of the scale and struggle to make ends meet. The state is facing budget deficits, which could be the key to passing online gambling legislation. New York’s neighbors, Pennsylvania and New Jersey are both benefiting from the tax revenue from online casinos. The legislative efforts to legalize online gambling are expected to continue in 2025.
Maine
Maine emerged as one of the contenders for online casino legalization in 2024. Legislative efforts brought it close to passing an online casino bill. Rep Laura Supica proposed this legislation which was limited to exclusive licenses for tribes operating in Maine. The legislation didn’t pass but it can pave the way for other legislation in the future. Sports betting was legalized in Maine in 2022.
California
Gambling operators keep a close eye on California due to its size and potential revenue. In 2022, there were attempts to legalize sports betting but the tribal casinos ended up blocking it.
Gambling regulator Richard Scheutz says there’s money to be made from sports betting but the real interest in legalizing it is to pursue online gambling. If sports betting gets the green light, it could pave the way for iGaming. Many Californians are open to online activities and have online businesses. Good passive income ideas for 2025 include setting up an automated online business or selling digital products.
Maryland
Delaware has had some form of online gambling for about 10 years. It’s not surprising that its neighbor, Maryland, is looking at potential legislation and the revenue online casinos could bring to the state. Senator Ron Watson is the driving force behind a new bill after his previous bill didn’t get any movement in the House. The new bill would double the licenses available to 12 online casinos with slightly higher license costs and taxes for operators.
New Hampshire
New Hampshire may be one of the smaller states but it is steadily taking moves towards legalizing online gambling. SB104 was introduced by Senator Timothy Lang in early 2023. The bill passed the Senate but was defeated in an executive session of the House Ways and Means Committee in April. A further committee meeting in May moved to indefinitely postpone SB104, despite support from five committee members.
