The Next iGaming Frontier – What State Will Legalize Online Casinos Next?
The next iGaming frontier could redefine the U.S. gambling landscape, as more states weigh the leap from sports betting to full-scale online casinos. While over 38 states now allow legal sports betting, only seven states — New Jersey, Delaware, West Virginia, Pennsylvania, Michigan, Connecticut, and Rhode Island — currently regulate iGaming, according to LexisNexis.
That gap between sports betting and online casino legalization reveals one of the most fascinating contradictions in the gambling industry: the appetite for betting is widespread, but the comfort level with online casinos remains politically and socially uneven.
The Leading Contenders: Who’s Next?
Although full harmonization among states remains unlikely in the near term, several jurisdictions are strong contenders for iGaming authorization — each presenting distinct political and legal dynamics.
- New York: One of the most prominent potential entrants. Current proposals include a 30.5% GGR tax rate. New York’s population size and fiscal pressures make legalization highly attractive, but political divisions and existing casino interests complicate the path forward.
- Massachusetts: With a strong gaming commission and a regulated sports-betting framework, Massachusetts is well positioned to expand into online casinos. Expect an emphasis on consumer protection and structured licensing.
- Illinois: Known for pragmatic policymaking and a history of gaming expansion, Illinois could emerge as a quiet but efficient adopter of iGaming, leveraging its video gaming terminal infrastructure and operator experience.
- Maryland: After one of the nation’s most successful sports-betting launches, Maryland is exploring iGaming as a reliable new revenue stream. Legislative momentum and a pro-growth gaming environment make it a leading candidate.
- Wyoming and Indiana: Both have introduced iGaming bills in 2025 with moderate tax frameworks. While still in early stages, these states are showing willingness to test iGaming’s fiscal viability.
- Ohio: Despite an active sports-betting market, the governor has publicly opposed iGaming expansion for now, suggesting a slower path to legalization.
- Maine: Efforts to legalize online casinos were introduced but failed to advance, illustrating the ongoing political sensitivity surrounding digital gambling in smaller states.
Why the Next State Matters More Than Ever
The race to become the next iGaming state isn’t just about tax revenue — it’s about market leadership. The next mover will set precedent for others on tax rates, licensing models, and consumer protection frameworks.
States with existing casino infrastructure and neighboring iGaming jurisdictions have an advantage. For example, if New York joins the fold, it could trigger a domino effect across the Northeast, putting pressure on states like Maine, Vermont, and even New Hampshire to follow suit to prevent outflow of gaming revenue.
At the same time, the motivations behind legalization are worth questioning. Are lawmakers responding to genuine consumer demand for convenient, regulated online entertainment — or are they chasing short-term fiscal relief from budget deficits? The answer likely lies somewhere in between.
What’s Next for the U.S. iGaming Landscape
The U.S. online casino map is still taking shape, but the pattern is clear: as more states witness the stable tax flows and responsible gaming frameworks from pioneers like Michigan and New Jersey, resistance will continue to soften.
Industry analysts predict that by 2030, more than half of U.S. states will have legalized iGaming, unlocking a multi-billion-dollar market that rivals — or even surpasses — sports betting.
But as every state races to become the next iGaming frontier, the real challenge won’t just be passing legislation — it will be getting it right. The states that balance innovation with integrity will define the future of digital gaming in America.
If you follow SCCG content and have inquiries about your gaming business, connect with Lazarus Crystal Law Firm—formed by SCCG Management and Lazarus Legal to unite top-tier gaming law with commercialization and market-entry strategy.
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The iGaming gap is real—expect New York, Massachusetts, Illinois to move next, reshaping market access.
We're watching 38 states with sports betting versus only seven with online casinos. That friction is gold for operators who move fast. New York alone could shift the entire Northeast calculus. My network spans every active market; knowing which state moves next—and how—separates winners from also-rans.
- Seven states regulate iGaming; 38+ allow sports betting—massive expansion window
- New York, Massachusetts, Illinois emerge as leading contenders with distinct tax and licensing dynamics
- Political divisions and incumbent casino interests complicate path, but fiscal pressure drives urgency
SCCG angle: We help clients navigate state-by-state licensing and partner strategy. Our 150+ partner network spans every regulated market—we know which states are moving, who holds the keys, and where your capital and compliance stack best.