Online casinos aren’t available in all U.S states, but this seems to be something that is slowly changing. Sports betting is one area of the industry that has taken off across the country. Lawmakers have seen how popular (and profitable) online gambling has become, which is making legalized online casinos seem more beneficial for the general public. We’ve already seen success in states where residents have full access to online casino games. The only real question that comes up when online casinos are discussed is which states are likely to jump on board next. 

Where Do Online Casinos Stand Today?

Right now, just six states allow fully regulated online casinos: New Jersey, Pennsylvania, Michigan, Delaware, Connecticut, and West Virginia. These aren’t small test markets either. New Jersey, for example, has seen billions in revenue since it opened its doors to digital play. Pennsylvania and Michigan aren’t far behind. The growth has been steady, and the demand is obvious. Every year, more players log on, and every year, states collect more tax dollars. States still holding out are watching these results closely. They see what their neighbors are doing.

What About States Where Online Casinos Aren’t Legal? 

The reality is that players don’t always wait for lawmakers when there are alternative options available. In most instances, these players are turning to offshore platforms as alternatives if online casinos aren’t legal in their state. Many of these platforms are safe and fully licensed overseas. Still, there are endless options that can make choosing a single platform daunting, which is why online resources like Esports Insider’s casino selections have become popular with American players. The casino sites found on this list offer legal and legitimate options while states debate what to do. The same trend has also happened with online sports betting. Demand was so strong that people found workarounds until states started making changes. Now that governments have realized how much money they’re losing, we’re bound to see more states welcoming online casino activity. 

Comparing State Revenues

The numbers coming out of states that already allow online casinos make it clear why others are tempted to follow. In Michigan, iGaming gross receipts reached $2.9 billion in 2024, while sports betting added just $500 million on top of that. Taxes and fees from iGaming alone contributed more than $450 million to state programs, compared to under $15 million from online sports betting. New Jersey tells a similar story. Online gambling brought in nearly $1.9 billion in 2023, helping push annual state taxes from casinos and internet gaming to more than $883 million the following year.

Legislative Updates Across the Country

Several states are actively debating online casino bills, which shows that legalization isn’t just speculation. In New York, Senator Joseph Addabbo introduced Senate Bill S8185 in early 2024 to authorize online casinos and internet lotteries. His proposal would extend licenses to existing casinos, racetracks, and recognized tribal operators. Indiana has also tried to advance legislation. Representative Ethan Manning introduced HB 1432, most recently in 2025, which called for a 26% flat tax on operators before shifting to a tiered structure. Despite passing one committee, the bill failed to progress in the House, leaving the issue unresolved.

States Most Likely to Take the Leap

Some states look much closer to legalization than others. New York is at the top of that list. Its online sports betting market launched in 2022 and shattered records right out of the gate. Billions were wagered in the first year alone. That kind of success makes it hard for lawmakers to ignore the potential of online casinos. Illinois is another strong candidate. The state already has land-based casinos and a busy sports betting market. Adding digital casinos would be a logical next step, and several lawmakers have already voiced interest.

Eyes on the Midwest

Indiana has flirted with online casino bills before, but they’ve stalled in committee. With sports betting now a proven winner, supporters believe the time might finally be right. Ohio, a newer entrant in the sports betting space, is also worth watching. Residents there embraced mobile betting almost immediately, and the success in nearby Michigan shows what’s possible. Iowa, with its long history of gambling, could also join the conversation sooner rather than later. The Midwest already has the infrastructure and the appetite. It just needs the green light from lawmakers.

Southern States Warming Up

The South has traditionally been slow to adopt gambling expansion, but things are starting to change. Louisiana already runs both in-person and online sports betting, and the returns have been strong. Mississippi has always had casinos along its Gulf Coast, and with residents already familiar with gambling, online casinos wouldn’t feel like a stretch. Arkansas is moving more cautiously, but the regulatory groundwork is already in place if lawmakers decide to act. Florida is complicated because of tribal gaming agreements, but it’s such a massive market that it will remain a key state to watch.

What About the West?

California remains the biggest “what if” in the online casino conversation. The state has the size, the population, and a strong appetite for gambling, but the regulatory picture is tangled. Tribal casinos wield enormous influence and have resisted efforts that might cut into their dominance, while commercial operators keep pushing for broader access. Lawmakers have struggled to balance those competing interests, and repeated ballot measures have gone nowhere. The stalemate doesn’t erase the potential, though. For now, residents in places like Santa Clarita and across Los Angeles County watch from the sidelines, knowing the demand is already there but the laws are not. The stalemate doesn’t erase the potential, though. If California were to open the door, its online market could easily dwarf every other state almost overnight.

Beyond California, the western picture looks more promising in places like Colorado and Arizona. Both states embraced online sports betting quickly, and their regulators showed a willingness to work with multiple operators rather than limiting licenses to just a handful of companies. That flexibility makes them natural candidates to expand into casino games. Residents are already comfortable betting online, which reduces the learning curve and the political risks that sometimes slow lawmakers down. The conversation hasn’t reached the same intensity as in New York or Illinois, but the groundwork is there.

The Revenue Factor

At the heart of all these debates is money. Online casinos bring in serious tax revenue. Michigan alone collected hundreds of millions last year, money that went straight into public programs. New Jersey’s numbers are just as impressive. For states facing budget shortfalls or looking for new funding sources, this is hard to pass up. Lawmakers don’t need to build new casinos or pass bonds to collect this revenue. The infrastructure is digital. Players are already there, waiting to log on. All states need to do is open the door.

Technology and Player Habits

Technology is helping tip the scales, too. People expect convenience, and they want entertainment to fit in their pockets. Online casinos check both boxes. The signup process is simple, payments are fast, and the variety of games rivals anything you’d find in a brick-and-mortar casino. Add in modern payment tools like digital wallets and cryptocurrency, and the experience is even smoother. States that delay legalization risk pushing residents toward offshore sites while missing out on tax revenue. Those who act can regulate the industry and keep money at home.

Conclusion 

The spread of online casinos across the United States feels less like a question of “if” and more like a matter of “when.” New York, Illinois, Indiana, and Ohio are among the most likely to act first. Louisiana and Mississippi could help the South join the mix, while Arizona and Colorado might carry the torch out west. California remains the sleeping giant, though progress there will take time. For now, the trend is unmistakable.