As state legislatures across the US gear up for their 2025 sessions, the gambling industry is left wondering whether this year will bring any significant expansion in iGaming legislation. While several states have previously shown interest in regulating online casinos, the lack of momentum in 2024 casts doubt on whether 2025 will be any different. With key challenges still unresolved, it’s worth exploring the potential obstacles, industry sentiments, and what lies ahead for online gambling in the US.
iGaming Expansion Stalling in the US
Despite the steady growth of sports betting across the country, online casino legalization has lagged behind. Many stakeholders hoped that 2024 would be a breakthrough year for iGaming, but those expectations fell flat. As 2025 begins, a familiar problem looms—state legislators remain cautious about embracing online casino gaming, often citing concerns about gambling addiction, regulatory challenges, and taxation issues.
Key points contributing to this problem include:
- Limited Legislative Support
- In many states, lawmakers are hesitant to push forward iGaming bills due to fears of public backlash or insufficient understanding of the potential benefits.
- Opposition from Land-Based Casinos
- Some brick-and-mortar casino operators have resisted iGaming expansion, worrying that online platforms could cannibalize their existing customer base.
- Concerns About Responsible Gambling
- Critics of iGaming frequently point to the potential for increased gambling addiction and the need for robust responsible gambling measures. These concerns have slowed legislative efforts in key states.
Missed Opportunities in a Growing Market
The US gambling industry’s hesitation to expand into iGaming is causing states to miss out on significant economic opportunities. In states where online casinos are already legal, such as New Jersey, Pennsylvania, and Michigan, the market has generated substantial tax revenue and created jobs. For other states, the delay in adopting iGaming could mean falling behind in a competitive and rapidly growing industry.
Here’s what the US is missing by stalling on iGaming expansion:
- Revenue Potential
- States with legalized iGaming have consistently reported high tax revenues. For example, New Jersey generated over $1.5 billion in online casino revenue in 2024 alone, a figure that could serve as a benchmark for other states considering legalization.
- Job Creation
- The iGaming sector supports a range of jobs, from software development to customer support, contributing to local economies.
- Consumer Demand
- US consumers have shown strong interest in online gambling, as evidenced by the rapid adoption of sports betting apps. Ignoring this demand only pushes players toward unregulated offshore platforms, which offer no tax benefits or consumer protections.
What Needs to Happen for iGaming Expansion
If the US is to see meaningful iGaming expansion in 2025, several critical steps need to be taken by industry stakeholders and policymakers:
1. Industry Advocacy and Education
- Gambling operators and industry associations must step up efforts to educate lawmakers about the economic and social benefits of regulated iGaming. Clear data on tax revenues, job creation, and responsible gambling measures can help dispel misconceptions.
2. Addressing Responsible Gambling Concerns
- One of the biggest hurdles to iGaming expansion is the concern about gambling addiction. States considering iGaming legislation should ensure robust responsible gambling programs are part of any new framework, including self-exclusion tools, spending limits, and public awareness campaigns.
3. Building Alliances with Land-Based Casinos
- Rather than viewing online casinos as competitors, brick-and-mortar operators could benefit from partnerships that integrate their brands into the digital space. By working together, both sectors can grow without cannibalizing each other.
4. Learning from Early Adopters
- States hesitant about legalizing iGaming can look to successful models in New Jersey and Michigan, where regulated markets have thrived without major issues. These states offer valuable case studies on how to balance regulation, revenue generation, and player protection.
Key States to Watch in 2025
While widespread iGaming expansion may not be on the horizon, a few states could still make moves in 2025. These include:
- Indiana
- Indiana has shown interest in iGaming, with previous legislative efforts coming close to success. If supporters can rally enough backing, 2025 might finally see progress.
- New York
- With a large population and a booming sports betting market, New York is a prime candidate for iGaming. However, legislative hurdles remain, and progress will depend on strong industry lobbying.
- Illinois
- Illinois has been steadily expanding its gambling industry, making it a potential contender for iGaming legalization. The state’s large market size makes it an attractive target for operators.
Slow Road Ahead for iGaming Expansion
Despite the potential for high revenue, job creation, and consumer protection, iGaming expansion in the US faces an uphill battle in 2025. Legislative hesitance, industry fragmentation, and public concerns about responsible gambling continue to be significant barriers. However, with proper advocacy, education, and collaboration, there’s still hope for progress in the near future.
For now, states looking to maximize their gambling revenue streams would do well to consider the success stories of early iGaming adopters. Whether 2025 brings new online casino markets remains uncertain, but one thing is clear—states that embrace iGaming sooner rather than later stand to gain the most in this growing digital economy.