At times in the US, it can seem gaming’s expansion is without limit, especially given the multi-billion-dollar revenues generated by the industry on a year-in, year-out basis. While sports betting, retail casinos and even recent innovation such as prediction markets have found ways to develop additional growth, the online sector of US gambling has struggled to keep pace.
Currently, just eight jurisdictions have legalized iGaming – not including Nevada which solely offers online poker – with Maine representing the most recent inclusion after the signing of Legislative Document 1164 in January 2026. The lack of new expansion represents an admitted misjudgment on the part of both operators and suppliers, as confirmed by Light & Wonder President and CEO Matt Wilson at the 47th Annual Gaming Conference.
The gaming executive said Light & Wonder had been confident iGaming would expand further across the US once the threats of Covid-19 had passed, only to find itself “completely wrong about that” years later. With new competition emerging in online gambling, the US’ lackluster pace to extend iGaming operations leaves many questioning as to why the vertical has not garnered more interest from state lawmakers.
Where did operators, suppliers go wrong with iGaming assumptions?
While a global pandemic is certainly a worthy reason to hit pause on gaming innovation, those who were unable to visit casinos and participate in retail gameplay experienced a refresh unlike any other in the industry’s history. The presence of land-based gaming has never caused those in the online space to show hesitance – see sports betting, daily fantasy, prediction markets, etc. – but perhaps Covid-19 delayed a nationwide interest in iGaming rather than fueled the fire.
The same audience who could have tired of having to travel to casinos for slot machines, poker and many traditional forms of gambling found themselves prohibited from such activity for months.
Obviously, political climates can also have an effect on lawmakers interest in gaming expansion, with Wilson calling attention to recent tariffs issues which have soured the interest of international clientele
According to reports from the American Gaming Association (AGA), commercial gaming revenue across full-year 2021 shattered results from prior year periods, more than accounting for industry-low numbers in 2020. US residents were desperate to return to the status quo, and the money which was pouring in at the time had lawmakers relatively disinterested in risking what type of impact new expansion could bring.
The sentiment was shared by Wilson at the 47th Annual Gaming Conference, as the Light & Wonder President and CEO claimed politicians “like to do nothing,” as evidenced by only three states legalizing iGaming since threats of Covid-19 concluded. While Maine’s eventual launch in late 2026 or early 2027 could raise interest from fellow markets across the US, legislation to provide online gambling has routinely failed to pass through state government.
Difficulties have also been raised in states where Tribal compacts must be considered, especially with prediction markets and sweepstakes casinos directing Tribes’ attention away from iGaming in recent years.
Indian Gaming Association (IGA) Conference Chair Victor Rocha confirmed Tribal regulators “had a plan in place” to expand into iGaming and “would have done it already if it wouldn’t have been for some bad actors.” Rocha, as well as California Nations Indian Gaming Association (CNIGA) Chairman James Siva, have both stated Tribal focus on iGaming is currently set for 2028.
Not exactly what operators and suppliers may be looking to hear.
Who is to blame for lack of iGaming expansion in the US?
While Wilson appears to blame politicians’ lack of motivation to expand online gambling, it’s also easy to point to prediction markets and sweepstakes casinos for running interference during a crucial point in iGaming’s history. Especially with the fear prediction markets could soon move into iGaming event contracts, it’s no wonder as to why state legislators have shown hesitance to open the door to new expansion.
Lawmakers, when searching for means of additional financial gain, have even been drawn more toward raising the current tax rates on sports betting rather than introduce the opportunities iGaming could withhold. Since 2025, each of Illinois, North Carolina and Maryland – all of which have yet to legalize iGaming – either raised sports betting tax rates or introduced per wager surcharges for operators.
Still, it’s not as if lawmakers' attention hasn’t been focused on gaming in the US, it’s just been pulled greater toward unregulated forms rather than the potential of online gambling. A world where iGaming legislation can be passed while prediction market controversy tornadoes across the country is not implausible, but one which is difficult to imagine given the regulatory stress currently placed upon lawmakers’ shoulders.
The same audience who could have tired of having to travel to casinos for slot machines, poker and many traditional forms of gambling found themselves prohibited from such activity for months
Emerging competition from the North spells murky future
On July 13, Alberta became the second province in Canada to launch a regulated iGaming market, with operators such as FanDuel, DraftKings, Caesars Entertainment and BetMGM – along with numerous suppliers – having already confirmed entry. While operators and suppliers would still have plenty of interest in entering new US markets as well, the launch in Alberta represents new competition for a second consecutive year.
In 2025, Brazil went live with a fully regulated iGaming market, and has continued to grow the vertical in the 12+ months since initial introduction. One would think watching other countries expand into online gambling may influence lawmakers in the US, but operators and suppliers growing impatient with a lack of action are certainly not upset about the new potential.
Caesars Digital President Eric Hession pointed to the opportunities in Alberta and internationally for the operator during the 47th Annual Gaming Conference, but still believes the best iGaming potential lies in the US. Obviously, political climates can also have an effect on lawmakers’ interest in gaming expansion, with Wilson calling attention to recent tariffs issues which have soured the interest of international clientele.
At the end of the day, Alberta’s launch showcases the vast difference in momentum iGaming has built in international markets as compared to here in the US. The future of iGaming may still be bright in the States, but it's difficult to picture a scene where online gambling expands without facing a constant regulatory buffer.
iGaming Ontario launched its BetGuard self-exclusion tool for online players in May, having collaborated with responsible gaming experts and licensed operators to develop the new program
