US Online Casino Expansion: Which States Could Legalise iGaming Next?

US Online Casino Expansion: Which States Could Legalise iGaming Next?

The United States remains one of the most closely watched battlegrounds in global iGaming. While sports betting has expanded rapidly following the 2018 Supreme Court ruling that struck down the federal ban, online casino gambling — slots, table games, live dealer — has been slower to spread. As of early 2026, only a handful of states permit full-scale online casino play. That could be about to change.

Currently Legal Markets

New Jersey, Pennsylvania, Michigan, West Virginia, Connecticut, and Delaware currently operate licensed online casino markets. Each has generated significant tax revenues, with New Jersey and Pennsylvania consistently posting among the highest iGaming GGR figures globally. These markets provide compelling case studies for legislators in other states.

States to Watch

Several states have seen iGaming bills introduced in recent legislative sessions. New York is perhaps the most significant prospect — its sports betting market is enormous, and lobbyists have argued convincingly that the state is leaving substantial tax revenue on the table. Illinois, Indiana, and Maryland are also frequently cited as near-term candidates, with active industry and legislative discussions underway.

The Tribal Gaming Factor

One complicating factor in the US expansion story is the role of tribal gaming interests. In many states, tribal operators hold exclusive or preferential rights to casino gaming. Negotiations between tribal nations and commercial operators over the shape of online licensing frameworks have been a significant factor in slowing expansion in several states.

What Would More States Mean for Players?

For US players, wider legalisation would mean more options, stronger consumer protections, and more competitive bonus offers. Licensed operators are required to meet strict standards around responsible gambling, payment security, and game fairness — standards that unlicensed offshore operators frequently do not meet.

The Revenue Argument

With many US states facing budget pressures, the tax revenue argument for iGaming legalisation is increasingly hard to ignore. Pennsylvania generated over $2 billion in iGaming GGR in 2024. For states with underfunded public services, that is a compelling number.

Outlook

The pace of US iGaming expansion is expected to accelerate in 2026 and 2027. Industry observers believe at least one additional major state could pass iGaming legislation this year, with New York considered the most likely candidate. The operators best positioned to capitalise are those already active in existing US markets with established technology, compliance infrastructure, and brand recognition.