As of mid-2025, online casino laws in the United States remain varied, with only seven states currently allowing regulated play.
However, several others are now actively considering legalization. Driving this momentum are strong economic incentives, including new tax revenue streams, and growing confidence in digital platforms. This article examines whether any federal changes are on the horizon and highlights the key states moving toward legalization, along with the trends and opportunities shaping the evolving U.S. iGaming landscape.
There are no federal plans to legalize online casinos in 2025, as the matter remains under state control. Since the 2018 Supreme Court decision that overturned PASPA, the authority to regulate online gambling has rested with individual states. A national group of lawmakers has suggested basic rules for states. These include a 15%–25% tax, limits on credit card use, and protections for players. These recommendations are advisory, not binding.
For now, all meaningful progress is happening at the state level. Many states are working to pass legislation that would allow licensed US casino sites to operate legally within their borders. As these efforts unfold, plenty of casino fans look to trusted industry voices like Alex Hoffman, an established iGaming journalist and analyst, for updates. Hoffman’s updates include break downs of the latest developments in the online casino world and points players toward platforms with wide game selections, fast payouts, and generous bonuses.
Although legalization is moving slowly, several states are taking real steps toward regulation.
Maryland is at the forefront of the 2025 online casino conversation. Delegate Vanessa Atterbeary has reintroduced House Bill 17 (HB 17), targeting regulation by the Maryland Lottery and Gaming Control Commission. The proposal would allow existing video lottery and sports betting licensees to expand into online casino offerings. Maryland could also facilitate multi‑state online poker liquidity, an idea gaining traction nationally. In parallel, Senate Bill 340 is also advancing similar policy proposals.
A key motivation behind Maryland’s legislation is revenue: HB 17 stipulates that proceeds from online casino operations would be allocated to the Blueprint for Maryland’s Future Fund and the horse-racing industry. Some fear digital casinos will hurt physical ones. Supporters believe they can both succeed with safeguards like age checks and responsible gaming.
Despite optimism, legal and political hurdles remain. Maryland’s constitution prohibits introducing new forms of gambling without a voter referendum. If HB 17 passes the legislature in 2025 (although it is currently stalled in committee), the matter would be pushed to a statewide ballot, likely in 2026.
Not far behind Maryland, Virginia has seen a resurgence of interest. Senator Mamie Locke has pre-filed legislation slated for debate during the state’s January 8–February 22, 2025, session. The proposed statutes would allow retail casinos to partner with up to three online platforms per entity, with a separate license structure for online poker. Taxed at 15% of adjusted gross revenue (AGR), the model mirrors successful frameworks in other jurisdictions.
Virginia’s online sports betting success since its launch in late 2020 has brought confidence to policymakers contemplating deeper iGaming expansion. However, some critics continue to question the impact of broader access on the integrity of gaming establishments and overall community welfare. Virginia has not yet passed online casino legislation in 2025, but the ambition is clear.
Ohio’s Senate Bill 197, introduced in May 2025, proposes broad legalization of online casino games, poker, internet lottery, and horse-racing wagering. Residents aged 21 and over, while physically in Ohio, would be eligible to participate.
The bill proposes a 36% tax rate for operators with their own platforms. Those using third-party vendors would pay 40%. License fees range from $50 million to $100 million depending on the model, with multi-year renewals built in.
99% of tax proceeds would be directed to the state’s General Revenue Fund, with the rest reserved for oversight. A launch deadline of March 31, 2026, is set, with provisional licenses permitted during the rollout. If passed, SB 197 would significantly expand Ohio’s current online sports betting framework into a full digital casino market.
Connecticut, one of the seven states with a regulated online casino market, continues to refine its digital gambling landscape in 2025 through stronger oversight and responsible expansion. In June, the state reached a $1.5 million settlement with High5Games, reinforcing its commitment to consumer protection, particularly around self-exclusion compliance.
At the same time, the Connecticut Senate advanced Senate Bill 1235 (SB 1235), a measure designed to curtail unregulated sweepstakes-style gambling while opening doors for expanded online poker and college-sports betting. The bill includes clear penalties for illegal operations but also signals the state’s support for a safer, more accountable iGaming environment.
Rather than expanding recklessly, Connecticut is focused on building trust in its market, balancing innovation with consumer safeguards and responsible regulation.
Beyond this core group, several other states are exploring potential legalization. News around states vying for the legalization of state-regulated online casinos keeps on surfacing, so it’s important to keep up with current events in the casino sector. In Maine, Legislators consider extensions to charitable gaming tools but have not yet filed specific online casino bills. Momentum remains uncertain after stalled efforts in 2024. After failing to pass iGaming in earlier sessions, the bill’s sponsor in Iowa has stepped back, with no 2025 bill anticipated. While three proposals in the 2024 session (HB 2239, HB 2320, among them) failed in Illinois, discussions continue unofficially, keeping the door barely ajar.
The Texas Public Policy Foundation warned against expanded gambling, but legislative interest continues. Bills proposing resort casinos and expanded commissions, including online components, have been filed. However, Texas’s constitution requires voter approval, which remains unlikely in 2025.
As of mid-2025, the U.S. online casino landscape remains fragmented but dynamic. While federal movement is absent, state-level efforts are steadily reshaping the market. Maryland, Virginia, and Ohio lead current legislative pushes, while Connecticut sharpens its regulatory tools. Other states hover in various stages of debate or delay, with tribal interests, constitutional hurdles, and political resistance shaping the pace of progress. With each session, momentum builds toward a broader, more unified iGaming framework, one crafted state by state.
