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State of Play
- Will 2026 mark meaningful progress for online casino legalization across the US, or will it deliver more discussion than action?
- As states brace for budget shortfalls following the COVID-19 pandemic, the pressure to expand online gambling is mounting, but political and public resistance remains strong.
As the 2025 legislative session concludes, attention turns to 2026 and whether it will bring real momentum for the legalization of online casinos.
Several states showed sparks in 2025:
- Maine passed a bill, which was later vetoed by the governor.
- Emerging markets, such as Arkansas, Hawaii, and Virginia, joined the conversation.
- Traditional prospects, such as Indiana online casinos, Maryland online casinos, and New York online casinos, will always remain in the discussion, as they continue to be active.
- Florida online casinos are the unexpected twist, with Hard Rock Bet introducing online slot-like games compliant with their compact.
- A Massachusetts hearing is scheduled this month to discuss online casino legislation, broadening the dialogue.
Meanwhile, concerns are rising over how prediction markets may impact sports betting taxes, potentially motivating states to seek new sources of gambling revenue.
Skepticism of online casinos remains
The 2026 mid-term election cycle could slow legislative progress as lawmakers focus on campaigns.
Opposition groups, such as the National Association Against iGaming, highlight potential job losses and economic harm, fueling public skepticism reflected in polls that show strong resistance. For instance, 71% in Maryland oppose online casinos.
Although a handful of states have active bills, many efforts remain stalled or inactive across several others, including New Hampshire, Maryland, and Indiana. This means the landscape remains uncertain, with cautious optimism, but no guarantee of rapid expansion.
Budget strains may prompt more states to reconsider, but entrenched political and public hesitation could delay a broader rollout.
How the push to ban sweepstakes casinos plays into all of this
Another possible factor influencing the online casino legalization discussion is the movement by states to ban sweepstakes casinos. It’s evident, based on the popularity of sweepstakes casino sites, that people want some form of casino gaming on their devices. Whether that factor is taken into consideration when states go ahead with online casino legalization remains to be seen.
However, the additional tax revenue that online casinos could bring in is undeniable when considering the three major markets of Michigan, New Jersey, and Pennsylvania. When you add the player protections that legal online casinos could bring to states, that is another factor. Not only do you eliminate the gray areas of sweepstakes and social casinos, but you also generate additional tax revenue and enhanced player protections.
Based on reporting by Steve Ruddock for Casino Reports.
