The gambling industry continues to face a lot of hurdles worldwide, but it also has plenty of wins as well. We are on the verge of seeing more and more US states legalize igaming and casinos, although there’s still a lot of legal hassle to deal with. However, it’s clear that many states are moving forward with their igaming bills, and the latest ones were Massachusetts, New York, Wyoming, Indiana, as well as Maryland. Virginia has its own igaming bill, however that one is on hold, yet it will be refiled next year.
Since new legislative sessions are on their way, having new online gaming bills during debates has become very normal. In fact, over the past few years, at least 1 or 2 states have introduced bills designed to legalize online casinos. It’s something that continues in 2025 as well, with other states continuing next year as well. Famous brands like Flutter, Entain and William Hill have all capitalised on these new changes, by entering the US market in their droves.
Most US states still see online gambling as illegal
Despite the fact that some states are creating their own online gambling bills, it’s important to note that in most US states, online gambling is still illegal. Even in the case of legal states like the ones above, there are age strictions and regulations, all of which vary between every state. That’s why it’s crucial to check the state’s online gambling laws, otherwise you could engage in online gambling without even knowing.
How much is the casino/gambling revenue in states where online gambling is legal?
The important thing to consider is that casino revenue is a huge money-maker for many of these states. In fact, legalizing online casinos has brought in great revenue for a lot of different states. For example:
- Massachusetts posted $102.2 million in revenue from casinos, just during the month of December and $788.3 million from sports betting.
- Michigan had a $244 million iGaming revenue for the moth of December 2024 as well.
- Pennsylvania’s total gaming revenue for 2024 was $6 billion, with a great uptick towards the end of the year.
- North Carolina saw revenue of $613.1 million during December 2024 alone, after the state welcomed legal sports betting earlier during the year, in March.
All of these examples show that legalizing online gambling in various online states managed to bring in a lot of revenue. That’s one of the reasons behind more states legalizing online gambling. But as we mentioned, every state reserves the ability to impose restrictions, some of which can be more severe. These can include gambling limits, increasing the gambler’s minimum age accepted by the casinos and so on.
Tax implications
When it comes to online gambling, one of the most important things to consider is any tax pertaining to any acquired revenue. States like Pennsylvania or New Jersey where online gambling is legal are allowing a large portion of the gambling tax to the infrastructure and education. Pennsylvania’s annual revenue was able to fund large scale transportation projects.
Additionally, there are different tax brackets depending on the state. That means tax implications will vary and the amount that states receive can be different, according to the local laws. Pennsylvania is known for having higher gambling taxes, which in turn help maximize the benefit of locals. States with lower tax rates also benefit, because they make it appealing for industry investors to come there and create new companies, which leads to more taxes for the state.
Large Irish brands entering the US market
Since legal gambling in the US is becoming a lot more prevalent, large brands from other countries are slowly entering this potentially huge market as well. Flutter, one of the largest Irish brands in the world of iGaming, has already entered the US market, and it did very well since late May 2024, when it announced its transition to the US. That could make it appealing for other states to enter the US gambling market and thrive.
Why would gambling brands focus on entering the US market? Upon entering the market, that generates a lot of press and it brings more interest from investors. By cementing their legacy and shifting their focus to the US, flutter was able to bring in more investors and expand their reach on the market. That can also help with product/service improvements.
Additionally, the US is a huge market, and any foreign iGaming company is certainly interested in it. One of Flutter’s main goals is to consolidate their market leader position. Getting a large share of the market and having a powerful presence in the US is a great step in the right direction, if they want to achieve such a goal.
It’s an approach that many companies did it before, with rather great success. For example, Paddy Power did this on the UK market, where they focused primarily on sports betting and then they focused more on iGaming growth. William Hill also used their sports heritage, but they grew their online gambling service into what they have today. They expect FanDuel, a leader on the US sports betting market to continue their expansion in the casino space as well.
Are there any threats?
A report from the Lancet Public Health Commission states that online betting can lead to addition and major financial losses, which in the end has a negative impact on personal health. Gambling leads to job loss, health and relationship problems, not to mention the report says it increases domestic violence and suicidality as well. Since these services are available 24/7, switching off and stepping away can be difficult, especially if companies target people with an addiction issue.
That report, along with other studies, brings some of the reasons why not too many states in the US chose to legalize gambling of all forms. Some states only accept sports gambling, others are ok with iGaming services and casinos. However, the majority of US states don’t allow any form of legal online gambling, and that means players as well as illegal casinos can encounter major legal consequences.
Conclusion
Seeing major Irish brands like Flutter on the US market clearly shows there’s a huge demand for these services, and well-known brands can benefit from that. There are many states where sports betting is permitted, but online gambling still has ways to go until it becomes legal. Having foreign, well-established gambling companies enter the US market is certainly a step in the right direction, and we are bound to see more US states legalize online gambling soon!