Where are Online Casinos Legal in the US? Legal and Potential Online Gambling States

Having established themselves as foundational sports betting operators in the majority of U.S. states, the world's top online gaming platforms now have their sights set on launching online casinos across the country.

But while there are now nearly 40 legal sports betting states of the beginning of July 2024, the evolution of online casino legalization has been far slower. Only a handful of states allow for online casinos, and it could be several years before we see the kind of growth legal sports betting enjoyed earlier this decade.

Are Online Casinos Legal in the US?

The history of real money online casinos in the United States is complex and marked by legal challenges, technological advancements, and evolving public attitudes. Here's an overview:

Early Beginnings (1990s)

• 1994: The Free Trade & Processing Act in Antigua and Barbuda was passed, allowing the issuance of licenses to organizations wanting to open online casinos.
• 1996: The first online casino, InterCasino, was launched.
• 1998: The first online poker room, Planet Poker, was introduced.

Growth and Legal Challenges (2000s)

• 2001: Online gambling gained significant popularity. By this time, there were hundreds of online casinos, poker rooms, and sports betting sites.
• 2002: The U.S. Court of Appeals for the Fifth Circuit ruled that the Federal Wire Act prohibited online sports betting but not other forms of online gambling.
• 2006: The Unlawful Internet Gambling Enforcement Act (UIGEA) was enacted, making it illegal for businesses to knowingly accept payments related to online gambling. This led many operators to exit the U.S. market.

Post-UIGEA Era and Black Friday (2010s)

• 2011: The Department of Justice unsealed indictments against the founders of major online poker sites PokerStars, Full Tilt Poker, and Absolute Poker in what became known as "Black Friday." This significantly impacted the online poker industry.
• 2011: The Department of Justice issued a legal opinion stating that the Federal Wire Act applied only to sports betting, opening the door for states to legalize other forms of online gambling.
• 2013: Delaware, Nevada, and New Jersey became the first states to legalize online gambling. New Jersey's online casinos became particularly successful.

Recent Developments (2020s)

• 2018: The Supreme Court ruled in Murphy v. NCAA that the Professional and Amateur Sports Protection Act (PASPA) was unconstitutional, allowing states to legalize sports betting.
• 2020-24: More states began considering and passing legislation to legalize online casinos and sports betting. Connecticut, Michigan, Pennsylvania, Rhode Island and West Virginia have all launched legal online casinos in that span.

Current Landscape

• Online gambling remains a patchwork of regulations, with each state having its own laws and regulatory frameworks.
• As of 2024, several states have legalized some form of online gambling, including online casinos, poker, and sports betting, while others continue to prohibit it.
• The industry continues to grow, driven by technological advancements, increased internet penetration, and changing public attitudes towards gambling.

The future of online casinos in the U.S. will likely involve continued legal and regulatory developments, with more states potentially moving toward legalization and regulation – though it's unlikely we'll see an online gaming surge anytime soon.

States with Legal Real Money Online Casinos

Connecticut

Connecticut introduced legal online casino gaming to its residents in October 2021, five months after Governor Ned Lamont formally signed off on House Bill 6451, the state's landmark iGaming and sports betting legislation.

Residents had to wait a little longer than they probably would have liked due to necessary changes to gaming agreements between the state and the two tribes responsible for overseeing online gambling operations in Connecticut.

The Connecticut iGaming market has just two options which both went live on Oct. 19, 2021: Foxwoods Resort Casino (DraftKings) and Mohegan Sun Casino (FanDuel). CT online casino players can wager on roulette, blackjack, poker, and slots.

Per the AGA, the Mashantucket Pequot Tribe and the Mohegan Tribe oversee all gaming and regulatory activity on their reservations and are responsible for investigating and reporting any potential infractions via tribal inspectors. The initial compact term for both tribes is 10 years, and can be renewed for an additional five if agreed upon.

Both tribes are subject to an 18 percent tax on gross iGaming revenue, a figure that will increase to 20 percent after the first five years of the compact. Tribes are also obligated to use their revenue to fund tribal government programs, promote economic development on their reservations and donate to charity, among other requirements.

Delaware

Local casinos established gambling sites in tandem with the state lottery in November 2013, nearly 18 months after Delaware became the first state to allow for online casino gambling.

The Delaware Gaming Competitiveness Act of 2012 (House Bill 333) passed the Senate with a 14-6 vote margin, paving the way for the state to allow for online versions of slots and table games as well as online lottery ticket sales.

Delaware Park Online offers poker and casino games through desktop platforms and a mobile app), Harrington Raceway Casino Online offers roulette, video poker, and blackjack, and Bally’s Dover Hotel and Casino has Bally Casino by BetRivers which features slots, card and table games, and 16 jackpots.

Internet gaming is regulated by the lottery division of the Department of Finance. Proprietors pay a 15.5% tax on online table games and a 4.5% purse supplement. Internet video lottery games are subject to a whopping 42.5% state tax in addition to a 10% purse supplement.

Racetracks receive 43% of tax revenue as commission, while nearly 40% goes into the State General Fund, 10% into horse racing purses and 8% toward vendor fees.

Michigan

Patience waned. Tempers grew short. But in the end, Michigan finally introduced legal online wagering after more than a year of rules tinkering.

Governor Gretchen Whitmer originally signed the Lawful Internet Gaming Act on Dec. 20, 2019, opening the door for Michigan's 12 tribes and three casinos to operate legal online casino games. But regulators didn't finalize the guidelines for online gaming until January 2021, due largely to disruptions stemming from the COVID-19 pandemic.

It didn't take long for the industry to make up for all of that lost time: Michigan is one of three states to have produced $5 billion all-time in iGaming revenue since the Michigan Lawful Internet Gaming Act legalized iGaming in 2019.

BetMGM, Caesars, WynnBet (bought by Caesars), BetRivers, FanDuel, DraftKings offer an assortment of video poker, roulette, blackhack, baccarat, and slots options. Online poker and live table games are also available.

Michigan's compacts with its 12 federally recognized tribes were agreed to at three separate times: Seven signed on in 1993, four more reached agreements in 1998, and an additional tribe joined the fray in 2007. All 12 of the initial compacts carried 20-year terms, and those which were set to expire have been renewed or extended.

Michigan online casino operations are regulated by the Michigan Gaming Control Board, an extension of the state's Department of Treasury. The MGCB has instituted a graduated tax on online operators based on adjusted gross receipts:

According to the AGA, the Michigan gaming industry provides more than 60,000 jobs overall, so it's no surprise to see such robust interest in online gaming there.

New Jersey

Renowned for spearheading the nationwide legal gambling push outside Nevada, New Jersey provided a nice precursor to its tireless legal sports betting efforts.

The New Jersey online casino market was legalized in 2013, five years before the repeal of the Professional and Amateur Sports Protection Act (PASPA). New Jersey became the first state other than Nevada to legalize any form of online gambling within its borders, signing the bill into law Feb. 26, 2013 and hosting 13 online casino launches exactly nine months later.

New Jersey is another of the three states to have produced $5 billion all-time in iGaming revenue, no doubt aided by having a much earlier start than the majority of states.

The New Jersey iGaming marketplace consists of over two dozen legal online casino options, most of which offer a wide variety of poker rooms, live card and table games, and a robust collection of the best online slots in the U.S.

The state employs a two-tier regulatory system for online gaming, with the New Jersey Casino Control Commission and the Division of Gaming Enforcement joining forces. Those offering online casino games must pay a 15% tax on gross gaming revenues, and an investment alternative tax of 5% (or a community investment alternative tax of 2.5%)

Pennsylvania

HB 271 passed in 2017, allowing online casinos to launch in Pennsylvania – but it took another two years before the first games became available for play. Despite the slow adoption, PA is one of three states to have produced at least $5 billion all-time in iGaming revenue.

Pennsylvania iGaming is regulated by the Pennsylvania Gaming Control Board, which is responsible for overseeing all casino activity within the state along with online gaming, sports betting and racetrack slot machines. 

The state boasts 19 mobile casino apps, highlighted by heavy hitters BetMGM, Borgata, Betway, Caesars, FanDuel, and DraftKings. And they all offer a wide variety of Pennsylvania online casino options, including slots, roulette, blackjack, and baccarat markets. There are also poker rooms and live dealer options.

In addition to needing an Interactive Gaming Certificate ranging from $4-12 million depending on the date of application and number of online games offered, operators are taxed 54% on online slot machines, and 16 percent on both peer-to-peer and non-P2P table games.

Nearly 70% of tax revenue goes toward property tax relief, with 12% allocated to the state's Economic Development and Tourism Fund, and 10% each going to the state treasury and Commonwealth Financing Authority.

Rhode Island

Rhode Island is the nation’s first (and likely only) new state launch for iGaming in 2024 after Governor Dan McKee signed legislation in June 2023.

Live-dealer iGaming launched March 5, 2024, with Bally’s Twin River Casino spending $5 million to create a studio that broadcasts live games with dealers that residents can play on their mobile devices via a live-dealer simulcast. The studio sits inside the casino where slot machines used to be located, and there are no other iGaming offerings in the Ocean State.

Officials reportedly expect iGaming to produce $25 million in revenue for the state in 2025 despite the limited online options available. Expect most of the fastest payout online casinos to join in the fun if Rhode Island ever expands, but that's likely not happening soon.

The Rhode Island Lottery oversees all online casino operations in the state, with operators locked into a 61% tax rate on slot machines and 15.5% on table games.

West Virginia

The West Virginia Lottery Interactive Wagering Act brought online casinos to West Virginia, tethering online casino licenses to the state’s five land-based casinos. Legislation was formally approved in March 2019.

The West Virginia online casino scene initially launched in 2020, and the state now has nine legal online casinos offering slots, table games, poker rooms and live dealer games.

Gaming regulation falls on the West Virginia Lottery Commission, which requires prospective operators to pay a $250,000 application fee for a five-year license. Operators can renew their license for another five years at a cost of $100,000, provided they remain in good standing.

Thankfully for those fortunate enough to ply their trade in West Virginia, they're only required to pay a 15% tax on gross gaming revenue. That's a much friendlier figure than many other states, particularly when it comes to slot machine revenue.

States with Potential for Legal Online Casinos Soon

New York

The New York sports betting scene is the highest grossing regulated market in the US, so it’s only natural to expect casino gaming in all forms to expand there.

Lawmakers filed a bill to legalize online poker in May 2024. Labor union concerns about iGaming, along with a delayed licensing of the state’s first-ever downstate commercial casinos, have thwarted NY iGaming’s potential thus far.

Despite the momentum from legal sports betting and voter-backed approval for seven new commercial casinos, iGaming legislation was not included in the 2024-25 fiscal year budget. And even with multiple studies suggesting that online casino gaming has no negative impact on brick-and-mortar operations, those stumping for legal iGaming in The Empire State will likely be waiting a while longer.

The latest: The Gaming Facility Location Board is lobbying to extend the deadline for prospective downstate New York casino applicants to June 27, 2025, which would push the timeline for approval back to Dec. 31, 2025. The new proposed timeline, which runs counter to an NYSL bill which would move the deadline to Aug. 31,2024, would significantly delay the introduction of online casino gambling in New York.

Indiana

As with most states that have tried and failed to introduce legal online casinos, a major blocker in Indiana appears to be concerns over the potential impact on B&M establishments. But it isn't the only one.

An online casino bill died in February 2023 due in some part to fears that iGaming would hurt the state’s existing physical casinos. And late in the year, legislators confirmed they would not pursue any online casino legislation in 2024 thanks primarily to a former state lawmaker pleading guilty to conspiring to commit fraud after agreeing to push a bill to aid a casino proprietor in exchange for a high-paying job.

A new bill could be coming to the table in future legislative sessions, but there are a couple of hurdles to clear before that becomes a reality. And given that 2024 is expected to be a quieter legislative session (as most even years are), it will likely be 2025 or later before we see any movement on the legalization front..

The latest: Ex-Representative Sean Eberhart was sentenced July 10 to a year and a day in jail after advocating for the relocation of two casinos in exchange for a job that would pay a minimum of $350,000 per year.

Maryland

Not even the threat of Maryland residents flocking to the Keystone State has helped move forward online casino legislation there.

Maryland shares a border with Pennsylvania, which is one of the top iGaming states in the country, so there has been a push to legalize online casino in Maryland where there is already a prolific casino and sports betting market. But momentum stalled in 2024 though due to concerns from problem gambling officials and brick-and-mortar casino employees.

Lawmakers were also concerned about a potential surge in problem gambling were online casino games be made legal.

With voter approval required for gaming expansion in Maryland (per the state's constitution), we won't see a referendum on the table until 2026 at the earliest – which pushes Maryland's timetable for legal online casinos to 2027 or later.

The latest: Maryland lawmakers concluded their 2024 legislative session April 10 with a bill to legalize online casinos excluded from the final legislative agenda. That comes on the heels of the bill being left out of the state budget earlier in the month.

States with Sweepstakes Casinos Only

Sweepstakes casinos provide a safe, legal alternative to real money online casinos, and are offered in nearly every state in the U.S. Here's a look at sweepstakes rules by state:

Alabama

Sweepstakes games are permitted in Alabama, with the only legal requirement tied to whether the promotion includes alcoholic beverages. If alcohol is involved, the state's Alcoholic Beverage Control (ABC) Board must approve the contest; proprietors must fill out a form indicating the official rules and include any and all planned advertising.

Alaska

Alaska requires operators to have a state permit in order to run games of skill or chance, including sweepstakes. Otherwise, the rules here are similar to those in every other state that offers sweepstakes casinos: Participants must be able to enter for free, and participants must pay taxes on any monetary winnings. Find the full list of regulations here.

Arizona

According to Arizona regulations, any contest falling under the heading of "sweepstakes" must first be approved by and registered with the state Attorney General. Operators must also release the names of all contest winners to the state within 10 days of the contest being run. The Arizona government offers tips here on how to avoid sweepstakes scams.

Arkansas

As with many other states offering sweepstakes, Arkansas operators aren't permitted to offer up contests as a way to sell a product or service, nor can players be led to believe that they are winning a prize when in fact "the enterprise is a promotional scheme." Prizes must be awarded to the sweepstakes winner within 30 days of that winner being selected.

California

Sweepstakes or contests run in California which involve alcoholic beverages (either as prizes or inducements to participate) must follow the California Department of Alcoholic Beverage Control regulations set out here. Alcohol cannot be used as a means to encourage entering a sweepstakes or contest, nor can be offered as a standalone prize.

Colorado

Colorado sweepstakes proprietors are prohibited from requiring purchase as a prerequisite for residents to enter a contest. Operators are also not allowed to represent that making a purchase gives a player a higher chance of winning the sweepstakes or contest. This government site lays out the remainder of the state's sweepstakes rules in great detail.

Florida

Larger contests come under greater scrutiny – and that's certainly the case in Florida. Any sweepstakes offering prizes exceeding $5,000 must first be filed with the Florida Department of Agriculture and Consumer Services seven days before the contest starts. Those offering contests where travel is included in the prize must have "Sellers of Travel" registration.

Georgia

Georgia sweepstakes law is similar to the majority of states, but with two major highlights. Georgia sweepstakes operators aren't permitted to substitute a prize for one of equal or greater value. And proprietors cannot ask prospective contest entrants to participate in a sales pitch or seminar as a requirement to win. Sorry, timeshare industry.

Hawaii

Hawaii sweepstakes regulations have a few minor differentiators from the general state rules. Prizes where travel is involved require the proprietor to have "Sellers of Travel" registration. And operators cannot offer a sweepstakes or contest unless it awards every prize. There's also a detailed set of rules for any contest where property is offered as a prize.

Idaho

Iowa state regulations consider it an "unfair and deceptive act or practice" for sellers to require prospective entrants to pay a fee or service charge to participate in a sweepstakes or contest. Those offering bingo or raffle games are exempt from this rule, though those games have their own set of government-established regulations to follow.

Illinois

The Illinois Prizes and Gifts Act offers a detailed breakdown of everything operators need to display when running a sweepstakes or contest, including the retail value of the prize, any limitations on eligibility, and a disclosure that no purchase is required. Proprietors must also notify the winner of any sweepstakes or contest within 30 days of selecting that winner.

Iowa

The Iowa Legislature's Prize Promotions section features many of the same sweepstakes and contest regulations you'll see in the majority of U.S. states. Iowa proprietors are permitted to require participants to attend a sales presentation, but they must first make the entrants aware of what prize, if any, is being awarded before beginning the pitch.

Kansas

The Kansas Racing and Gaming Commission – which is also in charge of Kansas sports betting, among other gambling options – outlines that regular sweepstakes and contests are permitted as per the standard rules governing each state. Sweepstakes machines, which offer prizes via games of chance, are expressly forbidden in Kansas.

Kentucky

The Kentucky Legislature's Gifts, Sweepstakes and Drawings section lays out the state's biggest restriction on sweepstakes or drawings. Either prizes must not exceed $500 in value, or the combined value of all prizes divided by the total number of entrants must be less than $10. Cash prizes are prohibited for contests as part of marketing initiatives.

Louisiana

Louisiana sweepstakes and contest law operates similarly to the rest of the country. The main area of differentiation: Sweepstakes winners must be revealed either through the posting of a printed list, contact in writing or via phone, or through the use of scratch-off tickets or pull-tab tickets (where players can see whether they have won a prize).

Maine

Maine's government follows the same general sweepstakes and contest rules as the rest of the country – with one notable exception. The Maine Legislature allows for proprietors to advertise contests on packaging for alcoholic beverages, but prohibits operators from requiring participants to actually purchase alcohol in order to enter the contest.

Massachusetts

The Massachusetts Attorney General's section on Illegal Lotteries, Sweepstakes and De Facto Gambling Establishments clearly lays out what the government considers to be "unfair and deceptive acts or practices" as they relate to sweepstakes. Of note: Any tobacco-related sweepstakes or contests are strictly forbidden in MA. 

Minnesota

States want to keep their sweepstakes and contests free – but proprietors will often insist that winners pay shipping, handling or other fees. Minnesota law requires those contest operators to make clear (in 10-point font) that winners must pay these fees, and to list what those fees are. Learn more in the state's Contests and Charitable Gambling section.

Mississippi

The Mississippi regulations surrounding sweepstakes and contests are in line with the majority of U.S. states. One notable rule, from on a section of the Mississippi Code, prohibits retailers and employees from taking part in their own sweepstakes or contests. Also, the drawing cannot be held on the premises, nor can the prize be awarded there.

Missouri

Missourians might not like having to sit through a time-share presentation in order to claim a prize, but it's perfectly legal for companies to run their sweepstakes or contests in that fashion. The Missouri government does, however, require that proprietors indicate when the prize will be awarded, the odds of winning, and the approximate retail price.

Montana

Sweepstakes participants in Montana are subject to the same rules as the majority of U.S. residents – and the distinction between "skill" and "chance" is pivotal here. Montana law prohibits contests in which skill is the determining factor for victory; as sweepstakes prizes must be awarded based on chance, they're not subject to the same restrictions.

Nebraska

You won't find much variance between Nebraska sweepstakes laws and those imposed by the majority of other U.S. states. There is, however, one important differentiator in Nebraska that only a handful of other states have in place: Under no circumstances can an operator require any sort of payment or purchase for people to enter a sweepstakes.

Nevada

The unchallenged gambling capital of the U.S. has something for everyone – and that includes a robust offering of sweepstakes and contests. Nevada sweepstakes rules don't vary much from the national norms, though any proprietor offering prizes that include travel must be registered as "Sellers of Travel" before launching the sweepstakes or contest.

New Hampshire

Residents of The Granite State who win a contest or sweepstakes won't have to wait long to claim their prize. New Hampshire Games of Chance law requires sweepstakes operators to deliver any and all prizes to winners within 10 days of announcing the recipients. There must also be no charge to ship the prizes, aside from "reasonable shipping and handling costs."

New Mexico

New Mexico sweepstakes regulations don't steer completely clear of allowing payment for entry, but customers who wish to play for free are still protected. All sweepstakes contests must have a "No Purchase Necessary" option, and proprietors must indicate that buying a product or service does not increase a player's chances of winning.

North Carolina

North Carolinans are one of only a handful of groups that are entitled to win their contest or sweepstakes prizes within 10 days of the victors being announced. NC sweepstakes law also prohibits the use of machines or other electronic machines or devices to run contests. The state offers a handy guide to help ensure that customers are protected from scams.

North Dakota

Sweepstakes regulations in North Dakota are a little stricter than in some other U.S. states, but that's good news for the consumer. ND sweepstakes law prohibits sponsors from asking for payment in exchange for entry into a sweepstakes or contest, and requires operators to use specific language when clarifying number of prizes, odds of winning and shipping cost.

Ohio

Ohio's gaming regulations take registration to a whole other level. Ohio Administrative Code 109:9 requires everyone who wishes to conduct a sweepstakes complete an application for registration – and while that isn't so unusual, the registration requirement extends to machines or electronic devices that run sweepstakes or contests, as well.

Oklahoma

It's probably unclear to most players who don't dive into the fine print whether they have an advantage with paid sweepstakes entries over players who enter for free. Oklahoma contest and sweepstakes law clarifies this by stating that all paid and non-paid entries are combined for the purpose of deciding on a sweepstakes winner or winners.

Oregon

The majority of Oregon sweepstakes regulations are standard when compared to the national standards; odds must be clearly stated, and entry without purchase must be an option. One notable variant: Participants cannot be told they are a leader or finalist for a prize if more than 25% of people receiving that message carry the same chances of winning.

South Carolina

South Carolina sweepstakes regulations are among the most player-friendly in the nation. All prizes must be delivered to the lucky recipients (at the operator's expense) within 10 days of being announced as the winners. Also, proprietors are prohibited from requiring that a contest entrant participate in a marketing or sales pitch in order to claim a prize.

South Dakota

In the rare occurrence that a sweepstakes prize is unavailable, the South Dakota legislature has ensured that participants are covered. Operators must either offer up a prize of equal or greater value, provide a monetary equivalent in the form of cash, check or money order, or a voucher or certificate stating the prize will be delivered within 30 days.

Tennessee

Tennessee is renowned for having some of the strictest alcohol laws in the U.S. – and that reputation extends to sweepstakes and contests. Players are prohibited from entering any sweepstakes or contest sponsored by alcohol manufacturers, and Tennessee sweepstakes law bans operators from offering alcoholic beverages as prizes.

Texas

You'll find most Texas sweepstakes laws in line with the national standard, though a few restrictions stand out. Operators cannot awarded multiple prizes unless all prizes are given out on the same date and through the same selection process. And you cannot run a sweepstakes where entry is based on purchase if the prize is valued at $50,000 or higher.

Utah

While most government regulation sites can be difficult to navigate, the Utah Sweepstakes and Promotions page is as user-friendly as it gets. There, readers will discover that entrants cannot be required to buy alcohol in order to enter a sweepstakes, nor can alcohol be offered as a prize. Entrants must also be 21 to participate in sweepstakes.

Vermont

The Vermont legislature has done well to outline the differences in how entrants should treat postage when entering a sweepstakes. Accepting payment for contest entry is prohibited, but using a stamp to enter by mail is not legally considered "payment". However, players are not required to use their own postage to acquire a copy of the rules or other information.

Virginia

Virgnia's Prizes and Gifts Act states that tobacco-centered sweepstakes are not permitted. In addition, operators are prohibited from requiring that entrants visit an establishment in order to be eligible for the sweepstakes. Virginia law does, however, allow for operators to institute pay-per-call services to provide additional information about the sweepstakes.

Wisconsin

The Wisconsin Department of Administration's Division of Gaming lays out simple rules for determining what is permitted and what is prohibited with regard to sweepstakes held within the state. Primarily, any qualifying contests must allow for customers to be able to participate for free – and retailers are responsible for ensuring that this is the case.

Wyoming

Wyoming's main consideration for sweepstakes regulations is similar to South Dakota's. Namely, that an unavailable prize must be replaced either with a prize of equal or greater value; a cash, check or money order equal to the retail value of the prize; or notification in writing that the advertised prize will be sent to the winner within 30 days.

And in Washington … just enjoy the great outdoors

You might have noticed that one state did not make it into any of the first three lists.

Washington is the only U.S. state that doesn't offer either casino or sweepstakes options to residents. While Washington legislation allows for raffles and promotional contests, the rules do not extend to what qualifies as sweepstakes.

That said, the government's Sweepstakes FAQ page explains that two types of contests advertised as "sweepstakes" – golfing sweepstakes and bowling sweepstakes – are separate contest types centered around other gambling activities.