What States Allow Online Gambling: The Current Legal Landscape

Online sports betting has swept across America, yet online casino gambling remains legal in only seven states as of 2025. This slower expansion of iGaming reflects regulatory caution over concerns about addiction and competition with land-based casinos, even as online gaming generates substantial tax revenue where permitted. Understanding what states allow online gambling requires examining current legislation, regulatory frameworks, and the ongoing debate over digital casino expansion.

Is Online Gambling Legal in the United States

The legality of online gambling varies dramatically by state and gambling type. While online sports betting operates in over 30 states, online casino gambling (iGaming) faces stricter regulatory scrutiny. Federal law does not explicitly prohibit online gambling, leaving individual states to determine whether to permit digital casino games within their borders.

The distinction between sports betting and casino gambling matters significantly in legislative debates. Sports betting involves predicting external events, whereas casino games, such as slots, blackjack, and roulette, generate outcomes through the use of random number generators or live dealer systems.

The Federal Framework

The Wire Act of 1961 initially prohibited interstate wagering on sports, though its application to other forms of online gambling remains legally contested. A 2011 Department of Justice opinion clarified that the Wire Act only covers sports betting, paving the way for states to legalize other types of online gambling independently.

This federal restraint allows states to craft regulations that align with their policy priorities, economic needs, and social concerns.

States Where Online Gambling Is Legal

As of 2025, seven US states have legalized online casino gambling, each maintaining distinct regulatory structures and market characteristics.

Delaware: The Pioneer State

Delaware became the first state to launch online casinos in 2013, leveraging its existing lottery system to regulate digital gambling. Despite serving a population under one million, Delaware maintains a stable, regulated market that generates consistent revenue.

New Jersey: The iGaming Leader

New Jersey operates the nation’s largest online casino market, generating over $1.9 billion in annual revenue. The state legalized online gambling in 2013 and has since established regulatory standards that other states frequently emulate.

Atlantic City’s casino operators dominate New Jersey’s digital market, partnering with technology providers to offer comprehensive game libraries. The Division of Gaming Enforcement maintains strict licensing requirements and consumer protection measures. Residents seeking high-quality gaming experiences can explore options at the best online casinos that meet stringent regulatory standards in licensed jurisdictions.

Pennsylvania: Rapid Growth and Substantial Revenue

Pennsylvania legalized online casino gambling in 2017 as part of comprehensive gambling expansion legislation. The market went live in 2019 and has since become one of the country’s biggest iGaming operations, producing hundreds of millions in tax revenue each year.

The state licenses both land-based casino operators and qualified online-only platforms, creating robust competition that benefits consumers.

Michigan: The Midwest Powerhouse

Michigan entered the iGaming market in January 2021 and quickly established itself as a major player, rivaling New Jersey’s revenue within its first year. The state’s large population and mix of commercial and tribal casino operators created ideal conditions for the success of digital gambling.

Detroit’s three commercial casinos anchor Michigan’s online market alongside tribal gaming entities. The Michigan Gaming Control Board oversees licensing and regulation while fostering competitive markets.

West Virginia: Small State, Big Ambitions

West Virginia approved online casino gambling in 2019, expanding its digital gaming offerings beyond sports betting. The state’s five land-based casinos hold exclusive rights to operate online platforms.

Connecticut: Tribal and State Partnership

Connecticut legalized online gambling in 2021 through compacts with the Mashantucket Pequot and Mohegan tribal nations, as well as authorization for the Connecticut Lottery. This unique three-operator model strikes a balance between tribal sovereignty and state interests.

Rhode Island: The Newest Addition

Rhode Island represents the most recent state to authorize online casino gambling, with plans to expand into iGaming in 2026, aiming to boost state revenue. The Rhode Island Lottery operates the state’s digital gambling platforms.

States Considering Online Gambling Legalization

Beyond the seven states with operational iGaming, several jurisdictions are actively debating or preparing legislation to expand online casinos.

Indiana

Indiana has revisited comprehensive iGaming legislation multiple times, with industry observers expecting renewed efforts by 2025. The state’s successful launch of sports betting demonstrated regulatory competence and strong consumer demand.

Massachusetts

Massachusetts legalized sports betting in 2023, generating substantial tax revenue. This success has reignited discussions about expanding into online casino gambling, though casino operators and legislators remain divided on timing and structure.

North Carolina

North Carolina approved sports betting in 2023, paving the way for future discussions on iGaming. Proposals for online casino gambling may emerge in upcoming budget cycles as lawmakers observe revenue growth in neighboring states.

Advantages of Legalizing Online Gambling

States considering the legalization of iGaming evaluate multiple benefits that extend beyond direct tax revenue.

Economic and Social Benefits

• Substantial Tax Revenue: Legal states generate hundreds of millions annually, funding education, infrastructure, and social programs
• Regulated Market Development: Licensing requirements redirect funds from unregulated offshore operations to domestic, taxable businesses
• Enhanced Consumer Protection: State oversight ensures fair gaming, dispute resolution, and protection against fraudulent operators
• Technological Innovation: Legal markets drive gaming technology advancement, creating jobs in software development and digital services
• Competitive Advantage: States with legal iGaming attract gaming companies, creating employment and business development opportunities

Enthusiasts of digital gaming formats find that live casino platforms operating in legal states offer authentic experiences, backed by regulatory protections that are absent from unregulated alternatives.

Concerns About Online Gambling Expansion

Despite economic benefits, legitimate concerns about iGaming legalization influence legislative debates.

Problem Gambling Risks

Online casino games, with their 24/7 accessibility and rapid play rates, present higher addiction risks than traditional casino visits. The convenience of gambling from home removes natural barriers like travel time and social observation that may moderate excessive behavior.

Research indicates that online gambling correlates with increased problem gambling rates. Younger demographics, particularly vulnerable to digital addiction patterns, raise concerns among public health advocates.

Impact on Land-Based Casinos

Existing casino operators fear that online gambling cannibalizes physical casino visits, reducing revenue from slots, table games, hotel stays, and dining. While evidence from legal studies suggests online and land-based gambling often prove complementary, uncertainty persists.

Tribal casinos express specific concerns about online competition undermining operations that provide crucial economic support for Native American communities.

Regulatory and Enforcement Challenges

Effective online gambling regulation requires sophisticated technology for age verification, geolocation confirmation, and responsible gaming implementation. States must develop expertise in digital oversight while combating unlicensed operators.

Enforcement against offshore gambling sites proves challenging, as operators based internationally evade state jurisdiction.

Sweepstakes and Social Casinos

Many states without legal iGaming permits sweepstakes-based social casinos that mimic real-money play using virtual currency models. These platforms operate in legal gray areas, claiming exemption from gambling laws by offering free alternative entry methods.

Social casinos generate revenue through the sale of virtual currency while awarding prizes through sweepstakes mechanics, rather than direct gambling payouts.

State Crackdowns and Restrictions

Several states have issued restrictions or cease-and-desist orders against sweepstakes platforms. Connecticut, Michigan, and Washington have taken enforcement actions, arguing these sites constitute illegal gambling.

The future of the sweepstakes model remains uncertain as states clarify their definitions of gambling. Those exploring promotional opportunities should investigate whether casino bonuses from licensed operators offer better value and legal certainty than gray-market alternatives.

Public Health and Regulatory Priorities

Online casino games present distinct public health challenges compared to sports betting or traditional casino gambling. The rapid pace of play, unlimited access, and solitary nature of online gaming create conditions conducive to problem gambling development.

Responsible Gaming Requirements

Legal iGaming states implement comprehensive responsible gaming measures, including mandatory deposit limits, loss limits, session time reminders, and self-exclusion programs. Operators must provide resources for problem gambling assistance.

Age verification systems ensure only adults access gambling platforms, while geolocation technology confirms users operate within legal jurisdictions.

Addiction Prevention and Treatment

States allocate portions of gambling tax revenue toward programs for treating and preventing problem gambling. Funding supports counseling services, research into gambling addiction, and public education campaigns.

The Future of Online Gambling Legislation

The trajectory of US online gambling legalization points toward gradual expansion. Economic pressures, successful implementations in current legal states, and growing public acceptance suggest more states will eventually authorize iGaming.

Economic Pressures Driving Adoption

States facing budget shortfalls view gambling revenue as a politically palatable alternative to broad tax increases. As economic challenges persist, iGaming represents a relatively easy source of revenue generation.

Neighboring state competition also influences decisions. When residents cross borders to gamble legally elsewhere, pressure mounts to capture those dollars domestically.

Barriers to Rapid Expansion

Despite economic incentives, several factors hinder the adoption of iGaming. Conservative political constituencies oppose gambling expansion on moral grounds, while public health advocates emphasize addiction risks.

Regulatory complexity also delays implementation. States lack expertise in digital gambling oversight, requiring time to develop frameworks and establish enforcement mechanisms.

Card Games and Competitive Play

While casino games dominate iGaming discussions, online poker represents a distinct category with separate legislative considerations. Poker’s skill elements and competitive nature differentiate it from slot machines and table games.

Several legal iGaming states operate shared liquidity poker pools, allowing players across state lines to compete in tournaments. Those interested in competitive online card play can explore options at regulated online poker sites operating under state licenses in legal jurisdictions.

Charting the Path Forward

Seven states now permit comprehensive iGaming, generating billions in combined annual revenue while implementing regulatory frameworks balancing economic opportunity with public protection. Several additional states are actively debating legalization, suggesting that the trend toward broader adoption will continue.

The next wave of iGaming legalization is likely to emphasize transparency, rigorous oversight, and enhanced player protections, building on lessons learned from current legal states. As regulatory models mature and technology improves responsible gaming tools, states will gain confidence that online gambling can coexist with public health priorities. Economic pressures and interstate competition will continue to drive expansion. However, the pace depends on evolving public attitudes, political leadership, and demonstrated success in managing gambling-related harm alongside revenue growth.

Just a reminder: gambling is meant for fun, not a way to make money.
Only adults 21+ should play.
It can become addictive, so set limits and stick to them.
Help is always available at 1‑800‑GAMBLER or https://www.gamblersanonymous.org/