As state legislatures across the United States prepare for their 2025 sessions, the big question is: Will this be the year gambling laws expand, or will it be another letdown like 2024?
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Last year, several states discussed introducing
online casinos, but no one could seal the deal. To make matters worse for enthusiasts, no state added online sports betting either.
Heading into the new year, some states have already pre-filed bills for legal digital sports betting, and a few more lawmakers have hinted at doing the same. Still, when it comes to gambling on mobile devices, it seems like many lawmakers are just not ready to take the leap.
At the Global Gaming Expo (G2E) in October, Brandt Iden, the vice president of government affairs for Fanatics Betting & Gaming, made a strong case for legalizing iGaming. He highlighted how it could bring in millions in tax revenue, create jobs, and offer better protections for players. But even Iden doesn’t think 2025 will be the year for major breakthroughs.
“Look for a cash crisis in the next two years,” Iden said at G2E. “This budget cycle? Probably not. But COVID money is running out… Lawmakers don’t like to go to constituents to ask for money, so they go to businesses first.
“My prediction is, though I won’t name any states, you should look at state budgets. Which states have a history of gaming? That’s where you might see movement next.”
No iGaming Bills Yet
So far, no iGaming-specific bills are on the table as US legislative sessions begin. However, gambling, in general, is expected to be a hot topic in states like Alabama and Texas.
Alabama doesn’t offer much beyond parimutuel betting and historic horse racing machines, while Texas has a state lottery. Both states are discussing the idea of gambling expansion, but it’s unclear whether online gambling will make the cut or if they’ll focus on retail casinos and sports betting instead.
In the past, lawmakers in both states have introduced sweeping bills covering everything from luxury casino resorts to online wagering. However, iGaming hasn’t been a focal point in these proposals, at least not yet.
Ohio
Ohio came close to legalizing
online gambling
in 2024. A proposed bill would have allowed the state’s 11 casinos to each operate a digital platform. Unfortunately, it didn’t survive the legislative session, and the lawmaker behind it has now reached their term limit.
Ohio’s approach to digital wagering has been deliberate. Since launching online sports betting in 2023, the state has tightened advertising rules, raised taxes, and even banned harassment of athletes over bets. With this careful groundwork, online casinos might just enter the conversation sooner rather than later.
Illinois
Illinois lawmakers introduced three iGaming bills in 2024, but none made significant progress. Two proposed a 15% tax rate, while the third aimed for 12%.
Illinois has been an early adopter of legal sports betting and recently issued its 16th retail casino license. It also regulates video lottery terminals. Expanding into online gambling seems like a natural step if the state wants to boost tax revenue and attract new business.
Indiana
Indiana has been talking about iGaming for years, but meaningful action has yet to follow. A recent study suggested that online gambling could generate over $2 billion in gross revenue within three years.
Interestingly, some advocates are pitching iGaming as environmentally friendly. A local publication pointed out that online gambling reduces the need for people to drive to casinos, cutting down on emissions. While this angle might not sway lawmakers, it adds an unexpected twist to the conversation.
Louisiana
In December, Louisiana lawmakers got their first deep dive into iGaming during a legislative hearing. Advocates emphasized the potential tax revenue and consumer protections, while opponents like The Cordish Companies argued that the social costs are too high, even calling online gambling “gambling fentanyl.”
While it’s unlikely Louisiana will legalize online gambling this year, this initial discussion was a necessary first step.
Maryland
Maryland had high hopes for iGaming in 2024 after the House passed a legalization bill. Unfortunately, it didn’t make it through the Senate. Concerns over how online gambling might affect land-based casinos were a sticking point, with heavy lobbying against it by The Cordish Companies, which operate Live! Casino.
For Maryland to expand gambling, voters must approve it through a constitutional amendment. The earliest this could happen is November 2026.
Wyoming
Wyoming has been ahead of the curve in embracing new forms of gambling, from sports betting to games of skill. A study last year estimated that if they launch in 2025, online casinos could bring in up to $177 million in tax revenue by 2029.
Representative Bob Davis, who plans to reintroduce iGaming legislation this year, said:“Wyoming has been very proactive… We need to act and get it under control. The tax revenue could be a significant benefit.”
Final Thoughts
While 2025 probably won’t be a groundbreaking year for iGaming in the US, states are starting to lay the foundation for future discussions. As federal COVID relief money runs dry and budgets tighten,
lawmakers might find online casinos an increasingly attractive option for generating revenue.
