Can be confusing – either side of ‘the pond’

When assessing the US online casino market, it can be quite confusing as to what is legal and what is not. Real-money gambling is regulated at the state level and only a handful of states – New Jersey, Pennsylvania, Connecticut, West Virginia, Delaware, Rhode Island, and, most recently, Maine – allow their residents to access legal and regulated online casinos. Maine’s residents can’t actually play yet. Still, and has been passed to be enacted as an act to “Create Economic Opportunity for the Wabanaki Nations Through Internet Gaming”.

The name of the Maine act highlights what those on the pro-gambling side of the lobby have been saying for years – that online casino gambling represents economic benefits. However, the US has not taken a pragmatic approach to gambling, unlike countries like the UK (which has a highly regulated and very profitable gambling sector). In fact, the UK’s Office for Budget Responsibility estimated that in 2025-26 that betting and gaming duties would raise £4 billion for the Treasury. That represents 0.3 percent of all receipts and is equivalent to £140 per household and 0.1 percent of national income.

Fragmented market

When looking at the US market, you need to think about it not as one market, but fifty individual ones. Or you do for real-money online casino gambling and sports wagering. However, recent initiatives like prediction markets, sweepstakes and social casinos have rather muddied the picture as they are regulated at a federal level and are not strictly gambling (or not for legal purposes anyway). This means that they are not included in any official gambling figures but certainly have an economic impact and are instrumental in job creation.

Confused? You are most certainly not the only person who is. It can seem pretty impenetrable, particularly as new regulations are introduced and different states look to push back against operators they believe are using loopholes to circumvent state authority.

Anyone who is interested in learning more about what they can (and cannot) do regarding wagering and casino games could do with consulting an expert. Fortunately, there are plenty of independent comparison platforms available for free. One example is Casino.org which helps players find the best online casinos in the US. Everything is laid out very clearly on the site, and they also have a dynamic news page, blog, responsible gambling section, and learning hub.

Talking about money, money

One of the main reasons that lawmakers have for legitimizing online gambling, is that as people are going to gamble, it is best that they can do so safely. However, another major reason is that taxes can be levied, which is good news for state revenues. (Threats to these income streams are also a prime reason why states like New Jersey are actively challenging the legality of prediction markets in the courts). State taxes vary but New Jersey’s iGaming revenue for 2024 was $358.5 million with a tax rate of 15% for slots and table games. While that sounds like a massive figure (and it is one), it pales into insignificance compared to Pennsylvania’s $1.1 billion for the same reporting period. The Keystone State levies 54% taxes on slots and a more moderate 16% on table games.

Focus on Pennsylvania

Pennsylvania is, without doubt, the foremost experimental platform for the American iGaming marketplace which was established when House Bill 271 was adopted in 2017. It fully launched its internet- and mobile-based platforms in 2019, and it is now the second-largest commercial gambling market in the US. While Nevada might be more famous, Pennsylvania’s market is hugely important to the global iGaming industry. It is regarded as a prime example of how high-tax, high-growth regulatory systems can create success.

Shortly after launching the American Gaming association reported that the industry supported more than 33,000 jobs statewide and has an economic impact of $6.3 billion Bill Miller, president and chief executive officer, said,

“Over the last 15 years, gaming companies across the Commonwealth of Pennsylvania have served as an anchor for state and local economies, generating billions of dollars in tax revenue and operating as good stewards and community partners in the places casinos call home. Today, we’re pleased to highlight the success of gaming in western Pennsylvania, discussing the career opportunities that have been enabled, the small businesses that have been supported and the communities that have been positively impacted.”

New Hampshire resists

Legislators in New Hampshire have yet to be convinced. While 2025’s Senate Bill 168, set out to allow the New Hampshire Lottery to create an online wagering division to regulate online casinos, the bill failed to progress beyond the Senate Ways and Means Committee and was officially deemed dead on October 31, 2025. That means there are no legal, real-money online casinos in the Granite State, but it is still home to many social and sweepstakes casinos.

Sweeping growth

Not so long ago, this was regarded as a niche sector, but this is no longer true. In fact, the dominant force both in terms of economic impact and reach in the US, is the sweepstakes and social model rather than the real-money one. According to industry reports, the global social casino market gross revenues were approximately $71.1 billion in 2024. The sweepstakes casino market has seen significant growth particularly in regions where online gambling is restricted. While it is hard to get definite figures it is estimated that revenue in the vertical was $14.3 billion in 2025 with net profit of $4.6 billion.

Operators of sweepstakes casinos are subject to federal and state taxes, but these are usually charged in the country or state where the casino is based or domiciled. However, an increasing number of states apply sales taxes to currencies, token and other in-game items and sweepstakes casinos are required to collect and remit sales and use taxes on the sale of Gold Coins. These taxes are usually calculated as percentage of the gross sales price. In addition, they may also be subject to amusement taxes dependent on individual state laws.

The same but different

As indicated at the opening of the piece, looking at the US online casino market as a whole can be pretty confusing and the information available is often contradictory. The reasons that legislators give for supporting or refusing to engage with the market are also widely divergent. While US citizens might enjoy a flutter, it is a safe bet to say that not everyone gets the same (or any) odds or winning opportunities.