On the eve of state legislatures across the US preparing to open their 2025 sessions, will the gambling industry see expansion in the next 12 months? Or will hopes for new online casino states suffer the same fate as 2024?
Last year, several states opened discussion about whether or not to add online casino to their offerings. But none crossed the finished line. And no US state added online sports betting to its menu, either.
Early in the new year, legal digital sports betting bills have been pre-filed in at least two states and promised by lawmakers in a handful more. But lawmakers appear to remain somewhat averse to gambling on mobile devices.
During a G2E presentation in October, vice-president of government affairs for Fanatics Betting & Gaming Brandt Iden, made an enthusiastic case for igaming. There are millions of tax dollars to be made, consumers would be safer and jobs would be created. But Iden doesn’t think 2025 will be a watershed year — because states don’t need the money. Yet.
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 business first.
“My prediction is, and I am not going to give you any states by name, but I would look at state budgets and say, which states have a history of gaming? So, what’s next? A state (with legal sports betting) that needs the revenue.”
No bills filed yet
So far, no igaming-specific bills have been filed ahead of US legislative sessions, many of which open in the next week. But gambling in general will definitely be on the legislative agenda in Alabama and Texas.
Neither state currently offers much in the way of commercial gambling — Alabama allows for parimutuel betting and historic horse racing machines at parimutuel facilities. Texas has a state lottery. But legislators and stakeholders in both states are engaged in the concept of a gambling expansion. It’s just not clear yet if lawmakers in either state will push for online gambling vs. retail or legal sports betting only.
In both states, lawmakers have previously moved comprehensive bills that include everything from retail casino-resort destinations to online wagering. Icasino, however, has not been a building block of a proposal in either state so far.
In Michigan, a bill that would have increased the tax on online casino by 1% expired at the turn of the new year. Michigan is one of seven states with legal igaming, and stakeholders have had much success. But after governors in Ohio (2023) and Illinois (2024) pushed through tax hikes on digital wagering, the industry will be watching Michigan closely.
As 2024 came to a close, an Ohio bill that would have legalised online gambling expired. The bill would have allowed each of the state’s 11 casinos to have one digital platform. But the proposal doesn’t carry over to the 2025 session, and the sponsor has term-limited out.
The Ohio Casino Control Commission (OCCC) launched digital sports betting on New Year’s Day 2023. Since then, the governor has doubled the tax rate and the regulator has tightened advertising guidelines. The OCCC also added a rule banning those caught harassing athletes over bets. Given the thoughtful approach, two years of tweaking what was already a comprehensive law, it seems possible that online casino could be a topic of discussion.
Below is a look at other states in which igaming might be discussed in 2025:
Illinois
In 2024 lawmakers introduced three igaming bills, though none gained traction and won’t carry into the 2025 session.
Similar bills in the house and senate, HB 2239 and SB 1565, would have allowed for digital gambling with a 15% tax rate. A third bill, HB 2320 proposed a 12% tax rate.
Illinois was among the early adopters on the legal sports betting side. The Illinois Gaming Board launched retail wagering in March 2020 and digital platforms in June 2020. In 2024, the state issued its 16th retail casino licence. And Illinois is among a small handful of states in which video lottery terminals are regulated.
It would seem to follow that if the state is interested in generating more tax revenue or creating new business that online gambling would be the next opportunity.
Indiana
Lawmakers in this state have long been talking about igaming, but with no meaningful movement. Last year, a Spectrum study showed that gross gaming revenue (GGR) could exceed $2 billion within three years, but lawmakers still did not move forward.
Maybe it’s time for Indiana lawmakers to look at other potential benefits of online gambling. The Indiana Environmental Reporter in November wrote that “online gaming offers a modern solution. Instead of people driving to a casino, they can simply log in from home. No cars, no emissions.” The publication refers to casinos as “energy hogs” and points out that pollution starts when a customer gets in their car to drive to a casino.
It seems unlikely that igaming being “good for the environment” will sway Indiana (or other) lawmakers, but it is one more tool for the lobbying kit.
Louisiana
The National Council of Legislators from Gaming States held its convention in New Orleans in mid-December. Leadership also took the opportunity to share its experiences with igaming with the Louisiana legislature during a senate hearing. Lawmakers and stakeholders outlined the key pros — a new tax revenue stream and protecting consumers. But The Cordish Companies, which has a casino in the state, argued against. Cordish general counsel Mark Stewart referred to online gambling as “gambling fentanyl” and said the social cost of it is “too high.”
It seems unlikely that Louisiana lawmakers will go from a first educational session that offered very conflicting viewpoints to legalisation this year. But as with any issue, education is the first step.
Maryland
All eyes were on Maryland in 2024, and after the house passed a legal igaming bill, stakeholders were wildly enthusiastic. But the bill died in a senate committee as the cannibalisation of brick-and-mortar casinos became a key issue. The Cordish Companies, which operate the Live! Casino in Maryland, lobbied hard against online gambling. Cordish voiced concerns over cannibalisation… and continued to do so in December during an online gambling hearing in Louisiana.
Maryland lawmakers and stakeholders now have some time to reconsider — any gambling expansion in the state must go to the voters. The soonest a constitutional amendment could land on the ballot is November 2026.
Wyoming
According to a study the Spectrum Gaming Group, the state of Wyoming could bring in hundreds of millions in tax revenue over the next five years. Lawmakers in 2024 considered the topic, but weren’t ready to legalise. Representaive Bob Davis says he will reintroduce legislation that includes a 10% tax rate. According to the Spectrum study, Wyoming’s market could have gross gaming revenue up to $887 million (£717.3 million/€852.4 million) and tax revenue up to $177 million by 2029, if online casino launches in 2025.
“Wyoming has been very proactive,” Davis told the Cowboy State Daily. “They did that with sports wagering, they did that with games of skill. They’re aware of what’s going on, and we need to act and get it under control.
“The other benefits from it would be a tax base. There seems to be large amounts in wagering, according to the different studies and stuff. Wyoming could use that tax money.”
