The rise of iGaming across the US first began in 2013, when New Jersey and Delaware were the first states to introduce the gaming type to online players, despite federal laws in the country allowing for such operations by default. While the two markets remained alone in its expansion for nearly five years, there are currently eight states in the US which have followed suit with iGaming legalization.
According to recent figures, iGaming revenue for 2025 has already reached $9.4bn with just 13 states having reported full-year results, equating to a 28.6% increase year-over-year. Given only a fraction of the 13 states may currently allow for iGaming operations, the figure stands to continue rising in the weeks ahead.
Even with the revenue figures displayed by states all over the country, it can’t be denied iGaming’s expansion has slowed in the US since 2021. Only two markets have opened since the post-Covid era, with Rhode Island joining the fray in March 2024 prior to Maine’s recent passing of LD 1164 on January 8. With over 40 states still outlawing iGaming operators from conducting business in their respective markets, it leaves many in the industry to ponder what the outlook for online gambling will resemble by the end of 2026.
Where could (or will) iGaming expand in the US?
As Maine Governor Janet Mills put pen to paper for LD 1164 on January 8, the decision failed to be made without expected pushback from the National Association Against iGaming (NAAiG), which has built a reputation for defending retail operations. LD 1164 allows Tribal governments located within Maine to begin providing iGaming services to players, but was described as a “clear break” from Mills’ previous stance by the Association.
“Opposition to this bill is not about excluding Tribes or protecting narrow interests. It is about preserving a model that has worked for Maine workers, Maine communities and Tribal governments alike,” the NAAiG stated.
“The Governor's decision also disregards her own Gambling Control Board, which urged a veto and warned that this bill would undermine existing casinos, put jobs at risk and destabilize a system that has reliably funded public priorities.”
While understandable to raise concerns over potential iGaming risks, the revenue generated by states surrounding Maine results in difficulty finding issues with its latest expansion. New Jersey’s iGaming operations accounted for more revenue than retail casinos and sports betting during December 2025, increasing 19.8% to $273.2m.
In Pennsylvania, the state’s Gaming Control Board reported an all-time high in full-year revenue for 2025 with $6.8bn, driven primarily by iGaming which set its own annual record after producing $2.8bn. Given LD 1164 was passed by Mills to help support Tribal communities and economic development in Maine, generating even a fraction of the results witnessed in New Jersey and Pennsylvania could sustain Tribes for years to come.
Can Virginia provide a glimpse into iGaming’s future?
iGaming legislation in Virginia has also received positive momentum, with the state’s General Laws Committee voting to advance Senate Bill 118 following new amendments introduced by Senator Mamie Locke on January 28. Locke’s bill was first denied by the state’s Senate General Laws and Technology Gaming subcommittee just two days prior, but the Senator was able to include new revisions which would require iGaming operators to implement responsible gambling programs.
Without forming its own stance on iGaming, the only side winning in this matter are the unregulated entities hoping the race for market share never becomes a true competition
The amendment to address responsible gambling was reportedly influenced by New York’s regulatory framework for gaming, but Virginia lawmakers stated it would be the first to utilize player data as a “potential trigger to identify and manage at-risk players.”
Perhaps Virginia will serve as a leading example of how to incorporate iGaming for fellow states across the US in 2026, but SB 118 still has to pass through the Finance and Appropriations Committee prior to being sent for final approval.
Is problem gambling the biggest roadblock to iGaming expansion?
One of the main concerns over expanding iGaming operations in the US is how the offering could eventually lead to the development of problem gambling habits. While the hesitance is certainly warranted, the chances of illegal platforms entering the scene would be just as conceivable if states never issue proper regulatory oversight. Without forming its own stance on iGaming, the only side winning in this matter are the unregulated entities hoping the race for market share never becomes a true competition.
States where iGaming is legal have already taken the steps to reduce problem gambling habits as well, with New Jersey implementing required responsible gambling courses on every university and college campus last year. On September 17, Attorney General Matthew Platkin also unveiled plans to offer a free and confidential financial counseling service to New Jersey residents, made available through the state’s Division of Gaming Enforcement.
The latest introductions in New Jersey represent the same trepidation which has restricted iGaming expansion to just eight states across the US in the past 12 years, however. As the US still continues to strike a balance in the oversight of sports betting, finding a way to legalize online gambling has become a strenuous puzzle for regulators. Without even mentioning the recent struggles witnessed with offerings such as sweepstakes casinos and prediction markets, it’s become quite apparent how slow-moving expansion can be executed across the US.
States such as Massachusetts, Illinois and New Hampshire are currently weighing iGaming legislation, which is set to be heard in 2026, but the chances of any being passed still have to be viewed as slim at the time of writing.
As the constant tug-of-war between financial opportunities and responsible gambling concerns carries on, the question of just how far iGaming can extend its reach in the US remains on the minds of nearly every operator, regulator and supplier associated with gaming. Virginia has taken the first step toward expansion, while Maine’s future will also showcase the liberties iGaming can provide for Tribal communities.
Massachusetts lawmakers chose to extend the reporting deadline of HB 4431 to March 16, 2026, which was originally introduced by Representative David Muradian and looks to legalize online casino gaming
