US Market

US iGaming Legalisation: State by State Update

September 2024 · 5 min read · iGamingUK

Real-money online casino gambling remains legal in only a handful of US states, but the pressure for expansion is building. Here is where things stand heading into 2025.

The regulated states

As of late 2024, regulated real-money online casino gambling is available to players in six states: New Jersey, Pennsylvania, Michigan, Delaware, West Virginia and Connecticut. These markets represent significant revenue — New Jersey and Pennsylvania in particular have established mature, competitive online casino ecosystems with proven player demand. For operators with the regulatory credentials to enter these markets, they represent genuine opportunity.

New York: the market everyone is watching

New York has the largest population of any state that has not legalised online casino. The revenue projections for a legalised New York market are substantial. Legislative efforts have progressed — and stalled — multiple times. Land-based casino lobby opposition remains the primary obstacle. The economic logic of leaving significant tax revenue to cross-border leakage into New Jersey becomes harder to sustain over time, and most observers expect eventual legalisation, though the timeline remains uncertain.

The sweepstakes alternative

For operators who want US market exposure without waiting for state-by-state regulated casino legalisation, the sweepstakes casino model provides legal access to most of the country now. Several operators are pursuing a dual strategy — building a sweepstakes presence that establishes brand recognition and player relationships while positioning for transition to the regulated model in specific states as legalisation occurs. This approach requires careful structural planning to ensure the two operations can co-exist appropriately.

What this means for new entrants

The choice between waiting for regulated expansion and entering via the sweepstakes model is increasingly a strategic question that deserves proper analysis rather than a reflexive default either way. We can help operators think through the right approach for their specific capital position, timeline, and risk appetite.

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