States where Online Gambling is Legal in the USA

Table of contents

• Legal Status of Online Gambling in the USA 2024
• US States Where Online Gambling (Casino Games and Sports Betting) is Legal and Regulated
• US States where Only Online Sports Betting is Legal (and not online casino)
• The Situation for Online Casino
• States Most Likely to Legalise iGaming by 2030
• Insights and Opportunities
• Market Entry for Operators in 2024

Navigating the legal landscape for online gambling in the US is one of the biggest challenges for iGaming operators looking to enter the market. 

With that in mind, let’s explore the states where online gambling is entirely, partially, and most likely to be legal by the end of the decade. Along the way, iGaming professionals will learn a few practical steps they can take to optimise their chances of successful entry in 2024.

Legal Status of Online Gambling in the USA 2024

There is significant variability across state lines in the laws and regulations for online gambling in the United States of America. This variance largely stems from the U.S. Supreme Court ruling in 2018 to overturn PASPA (Professional and Amateur Sports Protection Act), which shifted the regulatory responsibility to individual states. Since then, states have adopted diverse policies regarding online gambling. Some, like New Jersey and Pennsylvania, have fully embraced both online casinos and sports betting, while others maintain outright prohibitions.

Federal regulations, such as the Unlawful Internet Gambling Enforcement Act (UIGEA), continue to impact financial transactions, particularly relating to offshore international platforms, but do not directly prohibit individual states from legalising the various forms of online gambling. Nonetheless, the impact of federal laws has led to a complex regulatory environment in the US where the specifics of licensing, operational compliance, and permissible types of gambling vary dramatically from one state to another. 

US States Where Online Gambling (Casino Games and Sports Betting) is Legal and Regulated

To clarify the legal landscape, here are the only states that have legalised and regulated both online sports betting and casinos in addition to other forms of online gambling. These states have established frameworks that allow residents and visitors to engage in online gambling activities legally. This sets them apart from many other states in the U.S. where online gambling is either restricted or prohibited.

Connecticut

Online gambling in Connecticut was legalised in 2021, reflecting the state's forward-thinking stance toward the iGaming industry. This strategic move has facilitated the legalisation of online sports betting, casino games, and poker within state borders. Connecticut's approach to iGaming indicates its broader attitude toward gambling, which is mainly proactive and open to innovation. 

The state of Connecticut will likely continue enhancing its iGaming offerings and regulatory frameworks by embracing new gaming forms and partnerships with technology providers. Ongoing development in this sector can boost the local economy significantly and set a precedent for regulatory excellence.

Licensing Authority: Connecticut Department of Consumer Protection (DCP)

Advantage: Recent legislation offers a fresh, growing market.

Drawback: Limited number of licences available. Three exclusive master licences have been issued allowing licence holders to operate online and retail gambling services for sports betting casino, and DFS (Daily Fantasy Sports).

Delaware

Delaware became a trailblazer in the US online gambling landscape by legalising activities in this sector in 2012. This early adoption demonstrated Delaware’s proactive stance towards new forms of gaming and marked it as a pioneering state in the iGaming industry. The legal framework allows for online sports betting, casino games, lottery, bingo, and poker, providing a comprehensive online gambling experience under a well-regulated system.

The state's general attitude towards gambling is one of openness and regulatory rigour, ensuring that the gaming environment is safe and fair for participants. It will likely continue its leadership role by expanding its offerings, enhancing its technological infrastructure and attracting new business ventures and partnerships.

Licensing Authority: Delaware Division of Gaming Enforcement (DGE)

Advantage: An established market with a full range of gambling options.

Drawback: Relatively small population size.

Michigan

Michigan embraced online gambling in 2021, providing legislation permitting online sports betting, casino games, and poker. The state has a modern attitude to online gambling, showing a willingness to adapt to market trends and technological advancements.

The state focuses on maximising revenue streams from iGaming while ensuring robust regulatory standards to safeguard player interests. Michigan’s iGaming sector is poised for growth, expanding its infrastructure while offering more online gambling options. This proactive stance is expected to further integrate Michigan into the broader national iGaming market.

Licensing Authority: Michigan Gaming Control Board (MGCB)

Advantage: Comprehensive regulatory support and gaming options.

Drawback: Strict regulatory standards can increase operational costs.

New Jersey

New Jersey was an early adopter of online gambling in the United States, legalising it in 2013. This move positioned the state as a leader in the iGaming industry, developing a strong regulatory environment for online casinos, poker, and sports betting. New Jersey is commonly considered a pioneer. It has a history of embracing innovation and adapting to new market conditions, establishing it as a model for other states.

The general attitude towards gambling in New Jersey is exceptionally open, with the state viewing gambling as essential for further economic development. Looking ahead, the future direction for iGaming in New Jersey is geared towards continuous growth and refinement of regulatory practices. The state will likely keep enhancing its iGaming offering to remain at the forefront of the industry.

Licensing Authority: New Jersey Division of Gaming Enforcement

Advantage: Mature market with robust infrastructure.

Drawback: Intense level of competition.

Pennsylvania

Pennsylvania legalised online gambling in 2017, opening the doors for a full range of online gambling options. Legalisation underscores Pennsylvania's visionary stance on gambling, which it sees as a significant revenue generator and a way to modernise the state's gaming industry.

Pennsylvania's attitude towards gambling is favourable, with state regulators actively working to ensure a safe, fair, and regulated market. Looking to the future, the state is expected to continue its upward trajectory in the iGaming sector. Its enterprising approach aims to maintain its status as a leading player, safeguarding long-term growth and sustainability.

Licensing Authority: Pennsylvania Gaming Control Board (PGCB)

Advantage: Large and engaged market.

Drawback: High licensing fees and tax rates.

Rhode Island

Rhode Island entered the online gambling arena in 2019, focusing initially on online sports betting and, more recently, venturing into online casinos in 2024.  The general attitude towards gambling in Rhode Island is upbeat, demonstrating a pragmatic recognition of its long-term economic benefits for the state. 

This position is evident in the state's quick action to legalise sports betting following changes in federal law. Looking ahead, the future direction for iGaming in Rhode Island appears poised for gradual expansion. The state seems likely to ensure a balanced expansion, aligning with economic interests and consumer protection standards.

Licensing Authority: State Lottery Division of the Department of Revenue

Advantage: Access to an early adopter market.

Drawback: Limited market size.

West Virginia

West Virginia embraced online gambling in 2019, demonstrating a forward-thinking approach to diversifying its gaming and entertainment sectors. This state permits online sports betting, casino games, and poker, reflecting the extensive adoption of digital gambling. Furthermore, West Virginia's proactive regulatory stance aims to leverage online platforms to boost state revenue and provide for a tech-savvy audience.

The general attitude towards gambling in West Virginia is encouraging. State officials and regulators largely support the iGaming industry as a valuable economic contributor. Looking ahead, the future of iGaming in West Virginia appears to focus on further growth. The state is projected to continue refining its regulatory frameworks to attract more operators and expand the range of legal online gambling offerings.

Licensing Authority: West Virginia Lottery Commission

Advantage: Supportive regulatory framework.

Drawback: Comparatively small population.

US States where Only Online Sports Betting is Legal (and not online casino)

There is growing momentum towards legalising online sports betting in various US states as a direct response to the 2018 Supreme Court decision that overturned the Professional and Amateur Sports Protection Act (PASPA). This landmark ruling enabled states to establish their own regulatory frameworks for sports betting.  As a result, an increasing number of states have embraced this opportunity, recognising its potential to enhance state revenues and consumer protection within regulated markets. 

Here is a list of states that allow online sports betting through regulated platforms, but they have not extended this legalisation to include online casino games, such as online slots, table games, or poker.

The Situation for Online Casino

While online sports betting has been widely adopted since 2018, online casino games remain restricted in many states. This situation is due to several factors. 

Firstly, it is important to note that the repeal of PASPA in 2018 only addressed sports betting. Furthermore, online casinos offer a broader range of games that can be harder to regulate. Cultural perceptions also differ between the two popular gambling activities. Online casino games are seen more as a game of chance, which traditionally attracts greater scrutiny over social welfare concerns. In contrast, sports betting is typically viewed as a skill-based activity, enjoying widespread popularity and acceptance.

Nonetheless, a few states show potential for legalising online casino gambling by 2030, driven by legislative trends and economic incentives. Notable among these are:

New York

New York looks poised for significant progress in online casino legalisation due to solid support and repeated legislative efforts from key lawmakers.

Iowa

Like Indiana, Iowa has legislation pending that could legalise online casinos due to the state's growing enthusiasm and popularity of casino games.

Maryland

With nearby states already offering legal online gambling and continuous ongoing legislative efforts, Maryland shows strong potential for legalising online casinos in the near future.

States Most Likely to Legalise iGaming by 2030

Several states show promising signs of legalising online sports betting by 2030. Here's an overview of those states based on current legislative activities and stakeholder interests.

Georgia 

Efforts to legalise sports betting in Georgia have been ongoing for some time, with significant backing from pro sports teams and some politicians. Challenges include the requirement for constitutional amendments and detailed regulations. However, the momentum is building, and voters could decide in the near future.

Minnesota 

After several attempts, Minnesota is making determined efforts towards legalisation, focusing on an inclusive approach that benefits horse racing and professional sports teams. Recent legislative proposals aim to allocate online sports betting revenues towards problem gambling support and youth sports.

Missouri

Missouri has seen multiple sports betting bills filed, with significant interest from casinos and sports teams. Recent legislative sessions have come close to passing sports betting laws. Still, issues like the inclusion of video lottery terminals (VLTs) have yet to progress and remain a contentious issue that could continue to impede progress.

Oklahoma

The path to legalisation in Oklahoma is complicated by the involvement of local communities and the state's relationship with them. However, the governor's support and the potential revenue benefits for state priorities like education could push forward legislation. Legal discussions are ongoing at this time, but the underlying desire is there.

Insights and Opportunities

The US online gambling market is undergoing significant growth, with forecasts indicating a substantial expansion from approximately $5.12 billion in 2024 to around $10.98 billion by 2029, representing an annual growth rate of 16.52%. 

Numerous opportunities exist for iGaming operators and investors looking to enter the market. The continuous expansion of legal online gambling across multiple states, particularly online sports betting, creates fertile ground for new ventures. Moreover, states like New York, Indiana, and Iowa are on the brink of regulatory changes that could introduce or expand online casino opportunities across the United States.

The US online gambling landscape can be intricate for international operators. However, iGaming professionals and investors can take a few practical steps to optimise their chances of successful market entry. 

Understanding regulatory nuances across states, for one, is extremely important, as legislation varies significantly. In relation to this, prioritising entry with established legal frameworks will ease the way. Additionally, investing in robust security measures enhances consumer trust and helps meet regulatory requirement commitments. Additionally, the US is a very competitive marketplace. Partnerships with established US entities should be considered to leverage local expertise and facilitate market entry.

Market Entry for Operators in 2024

Altenar is an award-winning sportsbook provider to hundreds of online sports betting websites in more than 30 countries worldwide. 

Contact us now to learn how we can assist with your iGaming project in the United States.