Home » Why Do So Few States Have Online Casinos, and Which Could Be Next?

Why Do So Few States Have Online Casinos, and Which Could Be Next?

Publish Date: January 10, 2024

Depending on the state, there are different rules, regulations, and legalities regarding online gambling and casinos. On the other hand, sports betting has been widely legalized across the United States (although not in every state yet). Florida has been considering expanding its gambling industry by legalizing online casinos, while states like Pennsylvania have already been surprising leaders in the industry.

Depending on the state, there are different rules, regulations, and legalities regarding online gambling and casinos. On the other hand, sports betting has been widely legalized across the United States (although not in every state yet). Florida has been considering expanding its gambling industry by legalizing online casinos, while states like Pennsylvania have already been surprising leaders in the industry.

With a large population and a significant tourism industry it would make sense to allow online gambling for people living in and visiting Florida. Online casinos offer the same games as a physical casino, such as blackjack, slot machines, and even bingo. Other states that could have massive potential include the two most populous states, California and Texas. However, both don’t allow sports betting yet either, and are likely to remain this way until at least 2025.

Let’s dive into the few states with online casinos and which other states could adopt online casinos into their states soon. 

Potential States to Allow Online Casinos 

Several states have shown willingness to allow online casinos within their borders. This has been done through continuous ongoing discussions and legislation. The factors that involve the legalization of online casinos include legislative support, potential economic benefits and public opinion. 

The fear surrounding the allowance of online casinos in other states is that it will take customers away from physical casinos, causing revenue loss for land-based casinos. Other states also fear that industry giants are already ahead and control half of the online casino markets across the states which would increase their competition. 

However, since the federal pandemic stimulus funding from the government is near depletion, other sources of tax revenue will be needed to assist states, and adopting online casino gambling will help solve this potential problem.  

These are the following states that have shown an interest in allowing online casinos: 

Florida

Florida is one of the states that have been struggling to get the bill passed on the legalization of online casinos. However, to make it easier for people to access online casinos, offshore platforms are available and readily accommodate their audience. You can get the best sites from Florida overseas and legally play your favorite casino games online with real-money gambling. 

Connecticut

In 2021, Connecticut passed legislation to allow online gambling, but these are still pending approval from federal authorities. 

Massachusetts

There are ongoing discussions and proposals in consideration for online casinos that the state legislature needs to approve. 

New York

No specific legislation has been passed in New York yet, although there have been discussions and proposals to legalize online casinos, since sports betting is already thriving in the state.

California

No concrete legislation has been passed in California for the approval of online casinos, although they have had discussions and proposals regarding the service. As mentioned, it’s likely to be several years before anything comes of these discussions. 

Illinois

Illinois wants to expand its gambling industry, yet no specific legislation has been implemented to allow online casinos. As in Florida, offshore casinos remain a viable option for residents of the state.

Indiana 

Indiana may achieve its goal of allowing online casinos within the state. They proposed a bill, which died in February as part of the fear that it would take customers away from physical casinos. However, with the success of online casinos elsewhere, lawmakers are proposing the bill again next year. 

States That Have Legalized Online Casinos

Several states have legalized online casinos. According to the American Gaming Association, the gambling industry’s national trade group, internet gambling has generated $16.3 billion in revenue for the states that allow online casinos. 

An important factor to note is that each state sets up the rules and regulations of their online casinos, what is allowed in one state might be prohibited in the next one. As an online player, you have to know the laws of the state you are in to avoid bringing any laws when using online gambling services. 

The legalized online gambling states include; 

  • New Jersey: From November 2013 until September 2023, New Jersey generated $6.91 billion and $1.03 billion in tax revenue. 
  • Delaware: From November 2013 until September 2023, Delaware generated $59.2 million and $19 million in tax revenue. 
  • West Virginia: From July 2020 until September 2023, West Virginia generated $294.7 million and $44.2 million in tax revenue. 
  • Michigan: From January 2021, Michigan generated $4.1 billion and, for tax revenue, generated $1.03 billion. 
  • Pennsylvania: From July 2019, Pennsylvania generated $4.34 billion and $1.83 billion in tax revenue. 
  • Nevada: Nevada only offers internet poker but no online casino games, as it’s expected this will cause too much conflict with Vegas’ ever-thriving land-based casinos.
  • Rhode Island: Rhode Island has passed an online casino bill but it is not expected to go into effect until March 2024. 

Conclusion

Online casinos have proven successful in the few states that have already legalized them. It is important to remember that the status of online casinos and its legalization can change at any time. 

Before gambling online, you should ensure that you have checked all the rules, regulations, and legislature surrounding the online casino gambling policies of the state you are living in.

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