Entering 2026, the legalization issue of online casinos (iGaming) in the United States has once again become a focal point in several state legislatures. Currently, only seven states have a legal online casino market, with Maine expected to become the eighth soon. Faced with the impressive fiscal revenues of pioneers like New Jersey and Michigan, more and more states are reassessing whether to incorporate this "digital tax source" into their policy toolboxes. Did you know that in 2025, New Jersey's total gaming revenue reached a record $6.98 billion, with online casino revenues accounting for nearly $2.91 billion, surpassing physical casinos for the first time in history? This strong revenue-generating capability is the core driving force behind the states' renewed debate.
Current Situation and Core Driving Forces
The renewed interest in iGaming across states is driven by two major realities. First is the direct fiscal pressure, where online casino taxes provide a way to increase public revenue without directly raising general tax rates. Second is addressing the grey market, with numerous unregulated offshore platforms existing, posing risks to players, while establishing a regulated market can offer consumer protection. Currently, besides the states that have been clarified, the legislative processes in places like New York, Virginia, and Hawaii are closely watched, while Illinois and Massachusetts are also on the industry watch list. Ultimately, this is a complex balance of fiscal revenue, consumer protection, and responsible gambling.
Key State Legislative Progress and Controversies
Although the goals are similar, the legislative paths of different states face various challenges. Let's take a look at the dynamics in a few key states:
New York: The proposal has been resubmitted, with supporters citing the success of its mobile sports betting as evidence. However, opponents worry about problem gambling and its impact on physical casinos, and the bill is still in the early stages.
Virginia: A bill has been advanced in committee, particularly adding provisions for responsible gambling services and consumer protection in response to past concerns. However, achieving comprehensive legislative consensus remains a long road ahead.
Hawaii: This state, which has historically banned all forms of gambling, has also shown signs of loosening attitudes, with a task force established to study the issue, but legal and cultural barriers remain significant.
These points of controversy generally focus on problem gambling, the interests of physical casinos, regulatory costs, and social impacts. According to observations from the PASA official website, in legislative debates, designing a framework that can both generate revenue and effectively control risks is key to the negotiations.
Outlook and Recommendations
Even if the bills pass, it usually takes months or even longer for the market to officially launch due to the rule-making and testing period. Officials have repeatedly emphasized that online casinos are intended to complement, not replace, physical casinos. For ordinary consumers, in the United States where legal regulations vary greatly, it becomes particularly important to understand the legal operators, payment methods, and regulatory status of each state through reliable third-party information platforms.
Overall, 2026 could be a significant year for potential changes in the U.S. iGaming landscape. A breakthrough in a major market like New York could have a significant demonstration effect. Although nationwide legalization may still take time, the ongoing in-depth legislative discussions have already indicated that the regulatory framework for online casinos in the United States will continue to evolve over the next few years. Following the PASA official website for industry policy analysis can help you better grasp these key trends.
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This article is from "PASA-Global iGaming Leader" gambling news channel:https://t.me/pasa_news
Original in-depth gambling channel:https://t.me/gamblingdeep
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PASA official website: https://www.pasa.news
