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Aron Wright - June 6, 2024
With the huge expansion of online gambling, most people think that a large part of US states have already legalized online casinos, but in reality, the situation is very different. The majority of the states still haven’t legalized online casinos, and there are a couple of reasons for that.
Countries have a problem with online casinos just because the money can go outside of the state or country, which means no taxes, and eventually no benefits for the locals. That’s why online casinos have been in the grey zone for many years, but I think they are just postponing the inevitable.
The online gambling industry has been on a constant rise in the last couple of years and according to Statista, the global online casino market is expected to reach around $106 billion by 2032.
Let’s examine the current situation of the US market and find out in which states it is legal to play online casino games.
Before diving into the state specifics, let’s set the scene. Unlike the straightforward federal laws governing other activities, online gambling in the USA is decided at the state level. This means each state has its own rules, and the legal landscape can change rapidly based on new legislation or referendums.
Currently, seven states have legalized online casinos. These states have not only embraced digital gambling but also created a regulatory framework to ensure it’s done safely and fairly. Here’s a closer look at each:
New Jersey: The Garden State was one of the pioneers, of legalizing online casinos in 2013. Since then, it’s become a hub for online gambling, with revenues consistently hitting over a billion dollars annually. The market here is competitive, with many operators providing a range of games.
Pennsylvania: Pennsylvania followed suit in 2017. Despite high tax rates, the state’s online casinos generate over a billion dollars in revenue each year, showing that the market is thriving.
Michigan: Michigan’s online casinos launched in January 2021, and the state allows each land-based casino to operate multiple online sites. The diverse offerings include slots, table games, and video poker.
Connecticut: Connecticut legalized online casinos in 2021, working with the state’s two tribal gaming operators to launch their sites later that year. This state’s model is unique, focusing on tribal management of online gambling.
West Virginia: Since 2020, West Virginians have enjoyed legal online casinos. The state permits each of its five land-based casinos to operate up to three online platforms, ensuring a variety of options for players.
Delaware: Delaware was an early adopter, legalizing online gambling in 2012 and launching its first sites in 2013. However, the state’s small population has kept revenues relatively modest.
Rhode Island: The newest member of the club, Rhode Island legalized online casinos recently, with a unique setup that allows only slots and live dealer table games. This exclusivity gives Bally Casino a monopoly in the state.
Several states are flirting with the idea of legalizing online casinos. The legislative process is often slow and influenced by a mix of political, economic, and social factors. Here are a few states to watch:
Illinois: Proposals have been introduced, but resistance from the state’s video gaming terminal industry and debates over tax structures have slowed progress.
Iowa: Regular bills have been introduced, but they’ve received minimal attention. The lack of consensus among brick-and-mortar casino licensees has been a significant hurdle.
Maryland: Any expansion in Maryland requires a statewide referendum. Recent legislative attempts have stalled, but future efforts are likely.
New York: While there’s interest, legislative support and the governor’s backing are crucial. Current bills haven’t made significant progress.
What about Florida? In Florida sports betting is legal, but online casinos aren’t and there are no major expectations of that to change.
If you live in a state that still hasn’t legalized online casinos, don’t worry, you can still play social casino games for free on the link below: https://huuugecasino.com
The fact that only seven states have legalized online casinos while many more allow sports betting (21 states) highlights the unique challenges and conservative approach many states take towards online gambling.
States with large land-based casino industries, like Nevada and California, have shown reluctance to embrace online casinos, fearing it might cannibalize their established revenue streams.
The statistics tell a compelling story. In 2022, regulated iGaming generated $5.02 billion in gross gaming revenue (GGR) across six states, marking a 35.2% annual growth. This rapid growth underscores the potential economic benefits states could reap by legalizing online gambling.
Revenue Peaks: July 2023 was a record-breaking month for US iGaming, with regulated states generating over $481 million, a 22.7% increase from the previous year.
Market Demand: Despite the limited number of legalized states, over 48% of Americans reportedly engaged with unregulated online casinos and sportsbooks in recent years. This showcases a significant demand for legal and regulated options.
The industry has been growing with a very fast pace over the last couple of years, and experts believe that this will inspire some US states to change their federal laws governing online casino games.
