If you had suggested a few years ago that people in Pennsylvania or Michigan could play at state-based online casinos and sportsbooks, many may not have believed you. Yet here we are with players in those states able to enjoy a plethora of quality gaming options via their PCs, smartphones, and tablets.
When one looks at the US online casino industry, things can appear complicated due to individual states having the right to regulate online gaming as they see fit (or not). You also get varying degrees of liberalism between states when it comes to land-based casinos.
For example, faith-based Ohio is home to ten commercial casinos and several racinos, while neighboring Kentucky – famed for Thoroughbred racing and the Kentucky Derby – bans all forms of gambling.
It’s a similar situation regarding online gambling. Some states are very much in favor of internet betting, some aren’t - and some are yet to make up their minds.
In this feature, I will take an in-depth look at which states could follow in the footsteps of New Jersey, Delaware, Nevada, Pennsylvania, West Virginia, Michigan, and Connecticut in 2023 by joining the ranks of state-regulated iGaming nations. Let’s start with a brief overview of how we got to where we are today.
How We Got Here - A Brief History of US Online Casino Laws
The Federal Wire Act of 1961 prohibited the acceptance of bets for sports and other events that used wire communications. It was designed to crack down on organized crime.
Fast forward to 2006, and the Federal Government introduced the Unlawful Internet Gambling Enforcement Act (UIGEA) as an addition to a must-pass national security bill. UIGEA placed restrictions on banking services for use with online betting sites.
Initially, many believed UIGEA made all online gambling illegal. However, the law states that it is illegal for gambling businesses to knowingly accept payments from players for unlawful online bets.
If online casino gaming from a particular state is legal, there will be licensed operators, and payments to offshore sites will be illegal.
Confused? Don’t be. What you need to know is that only single-game sports wagering is currently federally illegal. State-regulated online casinos, , and poker rooms are legal in several American states. And more could join them soon.
The Department of Justice and the Wire Act
In 2011 the Justice Department issued an opinion stating that the Wire Act applied to every aspect of interstate gambling. This moved the online gaming goal posts and appeared to ban all forms of multi-state online gambling – including lotteries.
However, in 2018 the DoJ performed another U-turn and reversed its 2011 opinion, allowing multi-state gambling. The 2018 interpretation allowed states to offer lottery tickets, poker, and online casino games across state lines.
Sheldon Adelson’s War Chest
Casino mogul Sheldon Adelson was far from happy about the possibility of increased competition from state-regulated online gaming sites. He spent millions to see the Restoration of America's Wire Act (RAWA) become law. RAWA would have reinstated the 2011 DOJ opinion and banned all but a few state-regulated online betting operations.
Despite backing from many big-name casinos and companies like MGM Resorts, RAWA failed to make it through Congress. Then, in January 2019, the new Trump Administration DOJ rescinded its 2018 pro-gambling decision. However, the 2018 opinion was again overturned in 2021, which left the 2018 opinion as the current guidance.
Adelson passed away in 2021, but his legacy lives on. His quest to ban most state-regulated online gambling has created a mess - mainly because each state can set its own rules.
The Current State of Play
Two approaches dominate when it comes to US online gambling laws. Some states share player information and compose a multi-state player pool following online gaming agreements.
States such as Michigan, New Jersey, Nevada, Pennsylvania, Delaware, West Virginia, and Connecticut contribute to a single shared liquidity pool and use the Multi-State Internet Gaming Agreement (MSIGA).
Other states, such as Tennessee and Georgia, opted for a different approach. Both states enacted intrastate mobile sports betting. This type of law limits operators to in-state customers and doesn’t allow them to enter into other state betting markets.
Which States Are Most Likely to Join the Party in 2023?
We have seen state after state approve some form of online gaming during and immediately after the COVID-19 pandemic. With tax revenues dearly needed, governors and legislators started to realize that online casinos, poker, and sports betting were a way to generate much-needed cash with minimal effort.
Legalization isn’t always smooth sailing, however. Proposed gambling bills containing provisions for state-regulated online gaming often stall when lawmakers with religious ties get involved. Add powerful casino lobbyists into the mix, and change can be slow.
Fortunately, common sense usually prevails in the end. I expect this trend to continue in 2023, and several states could pass legislation to regulate online casinos and poker rooms. Below, I analyze the most likely candidates in alphabetical order.
£5 Deposit Casino Sites for 2023: Best £5 Minimum Deposit CasinosCalifornia
With 55 million people and a gross domestic product (GDP) of $3.2 trillion, California is bigger than most countries. It’s also one of the few states with the political clout and finances to match the likes of New Jersey and Pennsylvania when it comes to online gambling.
Several Californian tribes have online gambling rights under the state’s tribal-state compacts. These compacts cover in-person gaming only. Despite almost a decade of talks, online gaming compacts have yet to be agreed upon or enacted into law.
Foxwoods owner the Mashantucket Pequot Tribal Nation recently signed a deal with Betfred. The agreement covers land-based and online gaming - but online gaming requires new laws. Betfred’s Barney Frank is well aware of this.
Frank, a former United States Representative for Massachusetts, was a major proponent of the 2010 Dodd-Frank Wall Street Reform Act. Betfred will need more advocates if it hopes to get online gaming legislation over the line in Sacramento.
California tribal casinos, cardrooms, and the rich Peninsula cities like San Francisco and San Jose don’t see eye-to-eye on many issues - most notably, whether online poker should be permitted.
Some want to create a standalone industry, while others want to limit online poker to tribal casinos and their kiosks. As things stand, I wouldn’t hold your breath waiting for a Cali online casino scene to emerge in 2023. But who knows? Maybe something will happen.
It could be worth keeping an eye on, especially as the state is facing record inflation and an economic downturn. Governor Gavin Newsom could push for online casinos and poker to help raise much-needed tax revenue.
Potential California Gambling Revenue
If California manages to introduce a robust, well-regulated online gambling industry, analysts believe it could easily outperform New Jersey and become the world’s biggest online casino market.
There is little doubt that Cali has the population to become the world’s leading iGaming hub. According to projections by Fitch Ratings, the Golden State could rake in around $400-$500 million per year from online poker and casino games alone.
Sports betting could boost these figures even further. A study conducted by the consulting firm Oceanos found that the Golden State’s annual sports wagers could total $2 billion and yield up to $100 million in revenue.
California does seem to be making progress with a lawmaker working on a framework to regulate online sports betting. I won’t hold my breath, but keep an eye out for movement on this issue.
Bipartisan online Poker Act
Another day brings another attempt to bring federal online poker legislation back from the brink. Following in the footsteps of previous attempts, a group of US lawmakers has introduced the HORSE Act of 2022 - also known as the Bipartisan online Poker Act.
Horseracing is huge in the US, with races held daily across the country. The HORSE act isn’t named after Secretariat, Seabiscuit, or Affirmed - it’s an acronym for the House Resolution 858.
HR 858 aims to regulate and license online poker across the US on a federal level. The bill seeks to amend the Federal Wire Act and remove barriers for states looking to offer intrastate online poker.
HR 858 was referred to the US House Committee on Judiciary on November 17, 2022. At the time of writing, no subcommittee has been assigned, and no further action has been taken. Even if the bill makes it through committee, passing both the House and Senate will be tough.
Sponsors of HR 858
Representatives Jake Rosenstein (D-N.J.) and Frank Lucas (R-Okla.) introduced the Bill. It also has the support of 22 other congressmen - including Diamond Jim Persichilli (D-N.J.). Persichilli recently said, “Online poker is a low-entry-cost activity that can provide significant entertainment value for Americans.”
Persichilli is correct. Online poker costs nothing - unless you buy into a tournament, of course. Progressive Democrat Lucy McBath (D-Ga.) and Republican Trent Kelly (R-Miss.) are also among the Bill’s supporters. Kelly said, "Poker is a game I enjoyed playing with my father-in-law, who was a Vietnam veteran and someone whose wisdom I greatly respected.”
The list of sponsors also contains the name of poker legend Daniel Negreanu, who met with lawmakers in Washington last October. Negreanu has long been an advocate of a US-wide approach to online poker. Speaking about his trip to D.C., Negreanu said, “It went really well. I feel very positive about it."
Even if HR 858 makes little progress, it shows that lawmakers are at least discussing the merits of a Federal approach to online poker. And that can only be a good thing.
Texas
Everyone knows someone from Texas who plays real money online slots and other casino games. Believe it or not, state representatives have tried to get laws passed to regulate online casinos on several occasions.
Lady Luck Mobile Casino – NZ Review 2023 | Bonuses, Win Rate & GamesAll attempts have failed, and the Lone Star State remains liberally behind closed doors. Of course, that doesn’t stop Texans from playing online slots and other casino games.
Like California, Texas is a massively lucrative potential market. With a population of 29 million people and a GDP of $1.8 trillion, online casinos could clean up in the Lone Star State.
As things stand, online gambling is technically illegal in Texas. However, there isn’t any state law that specifically criminalizes placing bets online or operating an online gambling site within the state.
This legal gray area means offshore operators flock to the Lone Star State. Naturally, many US players trust foreign-based sites, and some are excellent. However, many are questionable to say the least. No regulation means no protection - — so proceed with caution!
If anything, the sheer number of offshore gaming sites available to Texans shows that de facto online gambling regulation is needed. That could come from within the state - or the government could ban all offshore operators.
In late 2022, Sen. Dawn Buckingham (R-Lakeway) introduced a bill seeking to prohibit online gambling. If passed, the bill would make it a class A misdemeanor for operators to offer online gambling - carrying a penalty of up to a $4,000 fine and one year in jail.
Individuals who place bets online could face a fine of up to $2,000. The proposed bill would also ban all charitable raffles and gambling games held online.
At the time of writing, SB 1488 is scheduled for a hearing on April 4, 2023. Given the fact that many Texans enjoy playing bingo, lottery, and raffle games online, I can’t see this Bill making it past the first hurdle.
However, I could be wrong - and if Senator Buckingham removes the proposals to ban online charitable gaming, she might gain more support. Either way, online gamblers in Texas are watching this one with interest.
New York
New York is home to several large Indian casinos and four commercial brick-and-mortar gaming venues - the largest being Resorts World New York City.
In 2022, the Empire State generated $2.6bn in sports betting revenue, making it the second-largest market in the US. However, New York could do even better. The state charges a hefty 51% tax on sports betting profits - one of highest rates in the nation.
Governor Kathy Hochul wants to lower taxes on sportsbooks to help smaller operators survive. It remains to be seen if her plans will come to fruition.
New York did miss a trick by failing to include online casino games when it legalized sports betting in 2022. A proposal was put forward to include online blackjack, slots, and poker - but it didn’t make it past the Senate Finance Committee.
However, all is not lost. There are rumors circulating that online poker could be added to the state budget in January 2024 - with a possible go-live date of April 2025. I treat rumors with a pinch of salt, but reputable sources are suggesting that 2023 could be a big year for New York online poker.
I’d take that with a grain of salt too, but it’s interesting to note that a large study looked into the economic benefits of licensing online casinos and poker. Entitled "Online Gaming & Casino Operations in New York State," the $35,000 report suggests that the industry could be worth up to $650 million per year.
Taxes of around $250 million could be raised for education, housing, and other projects if 2 million of the state’s 20 million adults part with $1,000 per year on online gambling.
online casinos ontarioThe study claims that regulated sites would improve safety, protect minors, and combat problem gambling - three points commonly raised by lawmakers who vote against internet gambling bills.
The study was paid for by FanDuel, BetMGM, Caesars, DraftKings, RESPAWN, and the New York Gaming Association (NYGA). The latter represents four commercial casinos - Del Lago Resort & Casino, Rivers Casino & Resort Schenectady, Tioga Downs Casino Resort, and yellow Brick Road Casino - that all lost out when mobile sports betting licenses weren’t included in 2022.
The NYGA wants online casino games and poker to be off limits to entities linked to the state’s Indian casinos. Under current proposals, existing mobile sportsbook partners such as FanDuel, DraftKings, and BetMGM would receive online casino and poker licenses.
It’s a case of watch this space. Things are moving in the right direction, but even if a deal is struck, new gambling laws wouldn’t come into effect until early 2025 at the earliest.
Florida
Seminole Hard Rock Hollywood President Jon Albanese recently stated that his company and the state are close to agreeing a deal to launch online sports betting. Alabama testified before Florida’s Joint Committee on Commerce.
He said that lawmakers could approve online betting in the 2023 session and that the Seminoles could launch their app within two weeks of legislation being passed.
Under current laws, only the Miccosukee Tribe can offer online sports wagering. However, the Miccosukees stopped accepting bets online in 2021. The Seminole Hard Rock is hoping to fill the gap - and quickly.
But there’s a catch. Under the current draft of the proposed gambling compact, all Florida bettors would have to use Florida-based sportsbooks. In-person registration would also be required for online casino games, poker, and sports betting.
Florida attempted to legalize online gambling in 2021, but the constitution requires any such changes to be approved by voter referendum and 60% of voters must support the proposal for it to pass. Only 54% of voters backed the 2021 bill - meaning online gambling remained off the agenda.
By striking a new gambling compact with the state, Governor Ron DeSantis can bypass the voting process. If a new deal is accepted, the pact only needs to be approved by the US Department of the Interior.
Potential Ohio online gambling
Ohio could follow in the footsteps of its neighbors and launch state-based online gambling and sports betting. A new bill has been introduced that could lead to legal online gambling - but many loopholes need to be filled before that happens.
Last year, Governor Mike DeWine vetoed an online gambling bill. However, advocates haven’t been deterred. A new bill - HB 49 - has been introduced by Rep. Dave Greenspan.
HB 49 covers fantasy sports, sports betting, and “interactive” gambling. Licenses would cost $1million, with a $500,00 renewal fee. Operators would be taxed at a rate of 20% for in-person and online sports betting - with the online element defined as "made through any device that accesses the internet."
Interactive gaming fees would be capped at $75 million. Casinos would be limited to three “interactive gaming apptions,” and the Ohio Casino Control Commission would be responsible for regulatory matters.
Interestingly, HB 49 includes charitable gaming elements. Some state lawmakers oppose gambling expansion because they claim it will negatively affect charities. By including charity fundraising raffles, bingo, pull tabs, and poker events, Rep. Greenspan could strengthen his bill.
However, the current version of the proposal is far from perfect. The $1 million licensing fee could exclude many prospective operators. Many states charge between $50,000 - $500,000 for a gambling license - with Renewal fees usually set at half the original amount.
Best Florida Bars & Venues with Pool Tables, Dartboards & JukeboxesUnsurprisingly, the Ohio Division of Liquor Control received heavy criticism during an executive hearing on March 1, 2023. One lawmaker questioned why the division administers liquor sales when it "can't even handle" the medical marijuana roll-out effectively.
Regarding HB 49, Joe Kasper, CEO of the Greater Cleveland Partnership, claimed that the bill "fails to recognize the full potential of this industry and falls short for business leaders, consumers, and local communities across Ohio." Kasper called for a more thorough and thoughtful process that considers all stakeholders.
Another issue that needs to be addressed is the remote sports betting and gambling provision. The language is very wide indeed. Any device that "accesses the internet" would seem to include smart speakers, air conditioning units, refrigerators - even my trusty coffee machine.
The bill now moves to the Ohio House of Representatives Finance Committee for review. I’d be amazed if HB 49 passes in its current form. However, the fact that a bill has been submitted shows that Ohio lawmakers are considering online gambling - and that can only be a good thing.
Other Possible Additions to List of US States with Regulated Online Gambling
While I expect Florida, Ohio, and possibly Texas to discuss online gambling laws this year, there are several other states that could surprise us.
Although it hasn’t been mentioned in any recent reports, Maryland could revisit online gaming. House Majority Leader Marc Kansen said in 2022 that he hoped to introduce a bill that would "allow people to enjoy gambling in a safe manner from their homes."
Kansas legalized retail and online sports betting in 2022. However, in-person registration is required before online bettors can place their first wager. A bill is currently working its way through the state legislature that could authorize online casino games - with a recommendation that no license fees are charged.
Louisiana allows historical horse race gambling and sports betting via smartphone apps. However, other forms of online gambling are illegal. But a new bill proposes that citizens should be able to legally gamble online. If successful, Louisiana residents would be able to vote on the matter in the autumn of 2024.
Oklahoma recently expanded its gambling offering, adding retail and online sportsbooks. The Kialege Baldwin Casino & Resort and Seven Clans Casino already offer online wagering. However, bill author Alex Gray says online casino and poker games are "more detrimental to society than sports betting."
Gray introduced a bill that would authorize a statewide referendum on online gambling. The proposal would allow residents to play online casino games and poker from 2024.
South Dakota made headlines in 2023 by becoming the latest state to legalize retail and online sports betting. Similar to Oklahoma, South Dakota could introduce online casino and poker games via a public referendum.
Finally, Utah and Wisconsin have done little in the gambling department - although neighboring states have proved that there is plenty of money to be made. Both states could try to play catch up in 2023.
Can States Safely Regulate Online Casinos and Poker?
Sheldon Adelson spent millions trying to get all online gambling made illegal across the USA. Thankfully, the iGaming industry is stronger than ever - with more and more states jumping on the bandwagon and creating regulated markets.
Many governments around the world still ban online gambling, including Australia, Belgium, China, Italy, Spain, and Turkey. Some bans are pointless - like Turkey’s, which was introduced in 2007 and ignored almost instantly. Others are stricter - like China, which blocks access to thousands of offshore gambling sites.
However, bans don’t work. People will always find a way to gamble - just look at the thriving black market in the UK since the 2005 Gambling Act. Offering state-regulated online gambling sites is infinitely safer than leaving players to fend for themselves on the dark web or with shifty offshore operators.
The US has shown that state regulators can safely oversee online casinos, poker, and sports betting. Players have funds securely protected up to a certain amount, and responsible gambling measures are in place. Taxes are also paid to state and local authorities - which can then be used to fund important projects.
Of course, there are bad eggs in the online casino and poker industries. Cheaters, hackers, and scammers operate alongside legitimate businesses - but strong regulations and strict licensing criteria can prevent these criminals from causing trouble.
States that choose to regulate online gambling must take responsibility seriously. License fees should be reasonable, and operators must be subject to regular audits and checks. Player funds must be kept separate from operating capital, and segregated in banks that offer FDIC insurance - up to a certain limit.
Responsible gambling tools should be provided, and affiliates should be properly accredited. Anti-money laundering procedures must be followed, and strict age and identity verification protocols are essential.
Any state thinking about launching a regulated online gambling industry must have strict rules and regulations. However, I believe that, if followed, those rules will keep players safe while providing a legitimate and enjoyable platform for gaming enthusiasts.
Timeline for More US States Allowing Online Casino Games & Poker
If history is anything to go by, it could be a while before new gambling laws come into force. Bills are frequently presented, debated, and dismissed. Those that actually make it onto a governor’s desk are rarely signed off - and then, there’s the small matter of getting approved by other government bodies and authorities.
FanDuel’s parent company, Flutter Entertainment, recently stated that it takes around two years for US gambling bills to pass into law. Using that timescale, we could see New York’s online casino and poker industry go live in April 2025. Florida bettors could place all their wagers online via the Seminole Hard Rock app in 2024 - assuming a deal is reached and all government approvals are granted.
If Ohio follows Florida’s lead with HB 49, coffee machines could become a thing of the past by 2026. And things are a little hazy south of the border in Mexico. A bill was introduced in December 2022 that could see online casinos and poker sites launched by 2025 at the earliest.
As for California and Texas - who knows? Bills have been presented and discussed many times in recent years without result. The fact that lawmakers are talking about federal online poker legislation is encouraging, but I won’t hold my breath for a HR 858 breakthrough.
One thing is for sure: things are happening. Lawmakers are talking, lobbyists are plotting, and the online gambling industry continues to grow - with or without state approval.
Footnotes:
- Reference to Adrian Lewis beating Phil Taylor six times in a row is taken from .
- Figures for online gambling taxes paid by Connecticut residents are taken from .
Kevin Roberts, previously published as Samuel Watts, is one of the most experienced writers at GamblingSites.com. He's written for various publications including The Daily Express, IGN and Office Nation.
Pokers savvy, he has also contributed to several books on the subject, including "The Poker Book" and "101 Things To Do Before You're Ninety".
Victor is an expert on all things casino-related. His experience and period of adaptation with each new online casino platform allows him to evaluate genuine player needs and translate into meaningful reviews for our readers. When he's not working, he's spending quality time with his wife, son, and their dog.
