Where is Online Casino Legal? State-by-State iGaming Legality
Author:
Zach Lutz
Reviewed by:
Published:
Dec 4, 2024
,
10:23 a.m.
ET
Updated:
Dec 17, 2024
,
08:07 p.m.
ET
The legality of online casino products, also known as iGaming, varies significantly across the United States, with only a few states permitting it. While sports betting has been legalized in now 39 states, the legalization of online casinos is usually viewed differently as a significant step further that carries major additional risk of societal harms, including gambling addiction.
Here we’ll explore where online casinos are currently legal, delve into the nuances of sweepstakes-based social casino gaming and examine the potential risks of legalized online casinos.
Which states have legal Online Casino and iGaming?
Currently, seven states allow legal iGaming: New Jersey, Delaware, West Virginia, Pennsylvania, Michigan, Connecticut and Rhode Island. Below is a breakdown of each state's journey toward legalizing online gambling, their current market status and notable revenue insights.
Delaware
As the first state to legalize online gambling in 2012, Delaware paved the way for others. Despite its small population, Delaware maintains a stable market, generating $6.7 million in October 2024. The state’s offerings include online casinos, sports betting, poker, bingo and lottery games.
New Jersey
New Jersey was another one of the pioneers when it legalized online gambling in 2013, becoming the second state (after Delaware) to embrace iGaming. With its robust regulatory framework, the state consistently ranks as one of the top markets for online casino. In 2023, New Jersey’s iGaming revenue matched Michigan’s at $1.92 billion. Notably, online casinos outpaced revenue from brick-and-mortar casinos, generating $213.6 million in October 2024 alone.
Golden Nugget leads New Jersey’s iGaming market, followed by Resorts (DraftKings) and BetMGM. This mature market contributes significantly to the state’s economy, with tax revenues of $31.9 million in just one recent month, October 2024.
Michigan
Michigan entered the iGaming market in 2021, quickly establishing itself as a powerhouse. In October 2024, Michigan set a new monthly revenue record of $220.7 million. Major operators like FanDuel and BetMGM dominate the market, contributing to $41.5 million in taxes, a portion of which benefits Detroit and tribal governments.
Pennsylvania
Pennsylvania legalized online gambling in 2017 and consistently ranks as a top iGaming market. In October 2024, the state generated $189 million in revenue, with Hollywood Casino at Penn National leading the pack. Online slots and table games are particularly popular, contributing to steady year-over-year growth.
High licensing fees and tax rates make Pennsylvania a challenging market for new operators, though its size and profitability remain attractive.
Connecticut
Connecticut legalized online gambling in 2021, allowing online sports betting, casino games and poker. The state’s iGaming market saw a 44.7% increase in 2023. In October 2024, Connecticut set a revenue record of $31.9 million, with DraftKings dominating 60% of the market.
Rhode Island
Rhode Island expanded its iGaming offerings to include online casinos in 2024. While still a small market, Rhode Island’s proactive stance demonstrates its commitment to leveraging iGaming for economic growth.
West Virginia
West Virginia embraced online gambling in 2019, focusing on online sports betting, casino games and poker. In October 2024, the state set a new revenue record of $23.4 million, reflecting the growing popularity of online gambling.
Where is sweepstakes-based social casino iGaming legal?
Unlike traditional iGaming, sweepstakes-based social casinos operate in a legal gray area. These platforms, like Chumba Casino and High 5 Casino, allow players to participate in games using virtual currency that can be converted to real withdrawable cash prizes. However, the legality varies by state, with some having recently cracked down on what they view as unregulated, unlawful gambling platforms. (Note: there are also sweepstakes-based sports betting platforms like Fliff that use a similar structure.)
For example, Connecticut, Delaware, Florida, Georgia, Idaho, Michigan and Washington have taken stricter stances against sweepstakes gaming, citing gambling law violations. These states have issued cease-and-desist letters to companies like Virtual Gaming Worlds, PredictionStrike and Stake.us on the grounds of illegally operating in their state. In almost all cases, the companies ceased operations in that state soon after, but remained live in other states.
Which is more dangerous: Online casino or sports betting?
While both online casinos and sports betting carry risks, iGaming often poses a higher danger of addiction due to the rapid pace and accessibility of casino games like slots and blackjack. Casino games can lead to more immediate financial losses, whereas sports betting often involves strategic decision-making over longer periods.
iGaming also offers 24/7 access, not dependent on the sporting events calendar, making it harder for players to regulate their gambling behavior. The key is understanding the risks associated with each platform and seeking help if gambling becomes problematic.
Gambling Addiction treatment for online casino players
Whether it’s iGaming, sweepstakes gambling, sports betting or any other form of gambling, if you or someone you know is struggling with gambling addiction, Birches Health offers a variety of resources to help. Take the first step today:
For immediate assistance, call 833-483-3838 or email hello@bircheshealth.com.
