Legalisation of Gaming in America

In 2025, the local entertainment landscape looks like a complex puzzle. While in some regions, there are dozens of licensed online operators, others prohibit even land-based bookmakers.

How the American Betting Market Works

In 2018, the country’s Supreme Court overturned the federal ban on the placement of bids on sports events, which had been in effect for over 50 years. Under the law, each territory can now independently decide whether to legalise betting or not.

According to the AGA, 47 states currently have legalised gaming in some form.

In the US, you can find:

1. Casinos. These are traditional complexes in designated areas, as well as Indian (tribal) clubs located on reservations.
2. Bookmaker offices. These can be standalone (based on kiosks or sports pubs) or operate as part of a betting shop. The placement of bids via mobile apps is also gaining immense popularity.
3. iGaming platforms. Digital casinos offer slots, roulette, cards, and live dealer entertainment. Making deposits is legal, but only within a state where the user lives.

Despite the diversity of available products, the gambling market in the US remains highly fragmented.

Local authorities are more willing to legalise bookmaking, but digital casinos often remain banned. Another approach is to obtain a licence for a land-based location, which will not offer lotteries and sportsbooks.

States with a Developed iGaming Sector

As of the start of this year, only a few regions had established comprehensive conditions for online entertainment, combining virtual casinos and other forms of such amusement under a single legal framework.

These jurisdictions provide examples of what a mature market looks like — with well-thought-out regulation, competition between project owners, and customer protection.

It is also worth noting that even legal states have restrictions:

• betting is only available to persons over 21 years;
• geolocation systems strictly monitor whether users are actually located within the territory;
• not all types of games are permitted everywhere (for example, online poker and bids on student sports may be restricted).

New Jersey

After the abolition of PASPA, the state became the centre of iGaming in the US thanks to its large population and flexible regulatory policies.

Today, top casino brands operate here:

• FanDuel;
• DraftKings;
• BetMGM, and others.

Companies compete with each other, invest in products or marketing, create jobs, and pay taxes.

According to Yahoo Sports, New Jersey's iGaming operators generated $1.63 billion in GGR in the first half of 2025. This is a 23.3% increase compared to the same period in 2024.

FanDuel has been the industry leader for several years in a row. The brand has already generated 37.8% of the sector's total revenue in the last 10 months.

Michigan

Since 2019, virtual casinos and sportsbook sites have been legalised here, making the state one of the largest markets in the country.

Here, both international operators and Native American tribes that previously managed land-based clubs can launch betting portals and platforms with slots.

The Michigan Gaming Control Board monitors the activities of these providers. The regulator has developed clear requirements for licensing, taxation, and customer protection.

Pennsylvania

It is considered the US leader in regard to revenues.

By the end of 2024, GGR was $6.87 billion, a 10.3% increase compared to the previous year.

The iGaming vertical and mobile betting are giving the sharpest growth, completely compensating for the decline in the retail casino segment, which is observed after the pandemic.

Over the past 4 years, the online sector has demonstrated double-digit growth in gross gaming revenue and generated hundreds of millions of dollars in tax receipts.

Pennsylvania has a well-developed infrastructure of private commercial casinos. Many of them have launched their online brands. These companies often get tax breaks from the local government.

Connecticut

The work of digital platforms is supported by commercial agreements with local tribal operators:

• Mashantucket Pequot;
• Mohegan.

The parties must agree on the division of rights and revenue shares, after which an entrepreneur can launch an iGaming project.

This type of cooperation somewhat limits the activities of large providers, but it also generates a significant profit for the budget. Even industry leaders like DraftKings and FanDuel have a small market share in Connecticut.

Rhode Island, Delaware, and West Virginia

These states are testing regulatory models, tax rates, and control mechanisms that are then expanded to other regions.

Delaware is considered the oldest region on this list, having launched virtual casinos, poker, and bookmaker’s offices in the early 2010s.

Today, the state is considered the most attractive for several reasons:

• blockchain gambling projects;
• niche products;
• B2B startups (creation of financial modules, security software, and FinTech solutions).

The region’s main advantages include low taxes and a well-developed IT and payment infrastructure.

Jurisdictions with Sports Betting But No iGaming

As of the start of this year, a whole group of states emerged where the placement of bids on various competitions is legal, but virtual casinos remain prohibited.

These territories work based on a hybrid model. Players can bet through mobile apps or offline locations, but have no access to digital slots, poker, or table games.

Colorado

This is one of the most dynamic sportsbook markets. Here, it is possible to deposit money via licensed apps and websites. Casinos on the Internet, however, remain illegal.

Users can visit social entertainment platforms and spin the reels in sweepstakes slots. In both cases, real funds cannot be won, and all payments are made in virtual coins.

Arizona

Here, bets on sports events are legal and offered online through apps for personal gadgets and websites. The law that supported tribal casinos was passed.

Virtual gaming (slots, raffles, and cards) is still prohibited. The state is not currently considering expanding its legislation to include the digital vertical.

Mississippi

This is an example of a region that maintains a conservative approach. Legal casinos have operated for decades, but authorities avoid expanding them into the Internet space. Sportsbook options are permitted, but only inside land-based establishments.

New York

The largest betting market in the US, with leading brands, is located here, and the volume of bids is reaching ten billion dollars.

According to iGaming Business, by the end of 2024, the GGR in the segment was $23.94 billion. There was a 21.9% increase compared to the previous year.

Virtual casinos and poker are still prohibited. Authorities are cautious about legalising the digital sector despite strong pressure from bookmakers.

Illinois

Here, bids can be placed:

• online;
• via mobile platforms.

Several bills to legalise Internet casinos have already been presented to the local parliament, but have not been approved. Experts predict that Illinois could be one of the next states to make the iGaming niche fully legitimate.

Ohio

The region opened its sportsbook market 2 years ago, but dozens of entrepreneurs are already successfully operating there. Residents can place bids both offline and through mobile applications.

The issue of legalising iGaming is being discussed. However, no official steps have been taken.

Virginia

The betting market is actively developing, especially in large cities. DraftKings and Flutter Entertainment occupy leading positions in terms of GGR.

Discussions about the possible legalisation of the iGaming vertical are underway, but for now, local authorities prefer to focus on controlling existing casino segments.

Prospects for Authorising Online Entertainment Portals

The availability of virtual betting and bans on slots, cards, and lotteries can also be seen in other states:

• Massachusetts;
• Maine;
• Iowa;
• Kansas;
• Tennessee;
• Vermont.

This approach is explained by several factors:

1. Social responsibility. Local authorities fear that the availability of virtual casinos will increase the number of addicted players.
2. Regulatory difficulties. The iGaming segment requires strict control over transactions, user verification, data protection, and anti-money laundering measures.
3. The interests of land-based establishments. Many states have treaties with Native American tribes that control offline locations. Such entities often are against online competitors for fear of losing part of the income.

Experts predict that the next wave of iGaming market development in the US will occur in hybrid states. These are jurisdictions where betting is already legal, but there are no casinos yet.

Regions with Entertainment Locations, but No Bookmakers

In some territories, gaming clubs are legal and have been operating for decades, especially on lands that belong to Indian tribes.

Nevada

This is home to Las Vegas, a global centre for tourism, entertainment, and betting. The city and its surroundings are home to dozens of casino complexes with luxury hotels and Michelin-star restaurants.

The iGaming vertical is partially legalised:

• online poker is permitted, but only on licensed websites (for example, WSOP.com);
• to launch a sports betting website, it is necessary to obtain a gaming permit for offline locations and have a physical presence in the state;
• digital casinos are prohibited.

Louisiana

Dozens of entertainment clubs work in the region, including the famous riverboat establishments, which have become a local business card.

iGaming is heavily regulated. Sports betting activities are permitted only in certain parishes (counties) where residents voted “yes” in a referendum. Virtual casinos are completely forbidden.

Utah

This is the strictest state regarding gaming. All types of amusement are prohibited here: lotteries, betting, poker, and clubhouses.

This policy is motivated by religious beliefs. The majority of the population belongs to The Church of Jesus Christ of Latter-day Saints, which traditionally opposes entertainment for money.

Tribal Casinos

In many states, gaming is permitted only on Indian territories. These are areas with special licensing rules and tax regulations.

These regions include:

• Oklahoma;
• California;
• Washington;
• Minnesota;
• New Mexico.

They allow traditional casinos but not online platforms, and often restrict sports betting.

The reason for this distinction is quite simple. Tribal operators fear competition from digital portals, and their agreements with the state government (gaming compacts) often stipulate terms only for offline activities.

Important Changes in the Entertainment Market

Let us consider the innovations expected in the American casino industry in 2025.

Legalisation of Bookmakers in Missouri

According to analysts, the state will become the 39th region to officially allow sports betting. The legislation provides for:

• strict controls over advertising and sponsorship;
• protection of socially vulnerable persons;
• tax regulation (12–15% of GGR);
• support for educational programs (a part of the contributions will be redirected to special funds).

Activation of Southern States

In 2025, reforms are being discussed in the following territories:

1. Georgia. An updated draft law to legalise online betting under the control of a state lottery has been introduced to the parliament. The authors of the document promise increased fiscal revenues and job creation.
2. Oklahoma. Negotiations between the government and tribal casinos have been conducted for several years. Currently, a compromise solution is being discussed, according to which sportsbook activities will be permitted only under tribal licences.
3. Texas. In 2025, a business coalition associated with the major sports leagues (NFL, NBA, and MLB) attempted to lobby for a law to legalise the placement of bids on the results of matches. The attempt was unsuccessful, mostly due to the Conservative Party's tough stance on gaming.
4. South Carolina. The local government is considering legitimising bookmaking in offline locations. Digital gaming will remain prohibited.

SAFE Bet Act

This initiative is increasingly discussed at the federal level.

The bill was introduced to the US Congress in 2024. Its goal is to create uniform standards for gaming and wagering regulation across the country.

Key provisions of the document include:

1. Restrictions on aggressive advertising. It cannot be directed at minors and vulnerable groups.
2. Use of artificial intelligence. AI is planned to be applied for monitoring customer behaviour and identifying signs of ludomania at an early stage.
3. The common rules for responsible gaming. Providers will be required to implement self-blocking functions, spending limits, and warnings about the risks.
4. Federal database of violations. Its existence will help prevent operators from migrating between states if they lose a licence.

The Main Things about the Gaming Industry in the US

It is worth noting that the American casino market is highly fragmented.

Key aspects that entrepreneurs should take into account:

• States with a well-developed iGaming sector include New Jersey, Michigan, Pennsylvania, Connecticut, Rhode Island, Delaware, and West Virginia. All forms of online entertainment for money are permitted in these regions.
• The US has a large number of territories that legalise digital betting but ban virtual casinos. These include Colorado, Arizona, New York, Mississippi, and others.