Online Casinos in America: Growth, Regulation, and the Road Ahead
Online casinos have become a major part of the gambling industry in the United States. More people are choosing to play casino games on their phones, tablets, and computers instead of visiting a physical location, which is changing how the industry operates and how companies reach their players.
At the same time, the rules for online gambling vary and continue to develop. Technology is also moving fast, bringing new features and experiences to players and raising new questions for businesses and regulators.
This article explores how online casinos are growing in the U.S., how they are managed, and what the future might look like.
Explosive Growth in Online Gambling
The online gambling market in the United States has experienced rapid and sustained growth over the past decade. Between 2015 and 2023, global online gambling revenue expanded from $37.5 billion to over $81 billion, reflecting a compound annual growth rate (CAGR) of 9.6%. This trend has continued well into 2025, with the U.S. emerging as one of the most dynamic markets in the sector.
In April 2025 alone, commercial gaming revenue in the U.S. reached $6.18 billion, an all-time high for the month and a 5.6% increase over April 2024. This performance is part of a broader surge in industry earnings, with year-to-date revenue (January to April) totaling $25.11 billion, already outpacing last year’s record-setting pace by more than 6%.
A major contributor to this performance is the growth of online casinos. In April 2025, revenue from iGaming hit $870.6 million, up 32.5% compared to April 2024. This growth underscores a larger shift in player behavior as more consumers turn to online platforms for their casino experience.
Several key factors are contributing to this growth:
- Mobile accessibility: The widespread use of smartphones and apps makes it easier for players to gamble from anywhere.
- Platform innovation: Operators are improving user experience through live dealer games, smoother interfaces, and cross-platform compatibility.
- Broader consumer acceptance: Online gambling is becoming normalized as a mainstream form of entertainment, particularly among younger, tech-savvy adults.
While land-based casinos remain a significant part of the gaming landscape, it’s clear that online gambling is no longer just a complementary offering. It’s becoming a dominant revenue stream for many operators. The sharp rise in iGaming signals strong performance and a structural shift in how people engage with gambling in the digital age.
Legal Landscape and Regulatory Framework
Since the repeal of PASPA in 2018, states have gained control over online betting laws. While there’s no federal regulation specifically for online casinos, several states have created legal frameworks for online sports betting and casino games.
The Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006 still restricts financial transactions tied to unregulated gambling, which affects how payments are processed for online casinos.
As of 2024, online casinos are legally available in many states, including Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. These states have developed licensing processes, tax structures, and oversight systems to manage online gambling activity and ensure consumer protection.
Each state offers different platforms, promotions, and game selections based on local rules and partnerships. For example, players in the Mountain State can access a fully regulated West Virginia online casino environment, where licensed operators provide access to slots, table games, and live dealer options.
Operators must comply with individual state laws, creating a complex patchwork of regulations. More states are considering legislation, but progress is uneven.
| States Considering Online Casino Legislation (as of 2025) | |
| State | Status |
| Ohio | Active legislation (SB 197) under debate; includes online casinos and internet lottery gaming. |
| Maryland | Requires voter referendum; earliest possible approval expected in 2026. |
| Virginia | Early-stage discussions; no formal bill movement yet. |
| Indiana | Legislative freeze due to 2024 bribery scandal; future uncertain. |
| Illinois | No active iGaming bills in 2025; legislative interest remains limited. |
| Texas | Broad gambling bill filed (includes online casinos); significant legal and political hurdles remain. |
Future Prospects
The future of online casinos in the U.S. will depend heavily on how well the industry balances growth with responsibility. One of the main priorities moving forward is improving regulatory frameworks. As more people engage with online casino platforms, there is a growing need for clear rules that protect consumers, prevent fraud, and support responsible gambling.
On the technology side, efforts will continue to focus on making platforms more user-friendly, secure, and reliable. Enhancements in mobile functionality, game variety, and payment processing will help operators meet rising expectations and provide a better overall experience for players.
As the industry evolves, consistent regulation and steady technical improvements will maintain player trust and ensure long-term success.
Conclusion
Online casinos are now a permanent part of the U.S. gambling industry. They continue to grow in usage and revenue, supported by changing consumer preferences and expanded digital access. While not all states have adopted clear rules, those are seeing vigorous market activity.
The current landscape shows steady growth, a developing regulatory environment, and an increasing focus on platform stability and user safety. As more data becomes available and more states evaluate the industry, online casinos will remain a key area of attention for regulators, operators, and players alike.
