America has one of the more restricted online gambling markets. Well, gambling in general. Interestingly, gambling is legal in America and has been since the Professional and Amateur Sports Protection Act repeal (the law prohibiting gambling) in 2018.
Now, it’s a state-by-state affair, and we call it an affair because, since 2018, many states have gone back and forth with bills that never come to fruition and communities and congresses that believe online gambling should be legal. As of 2025, only seven states regulate iGaming.
Despite that, the US (including North America’s relaxing online gambling market) generated $117.5 billion in revenue in 2025 and is projected to grow to $186.58 billion by 2029 (Demand Sage). That represents a compound annual growth rate of 12.3% and a market with significant tax revenue potential for states.
And you have to think, all that revenue is coming only from seven states. Below, we’ll look at them in more detail.
New Jersey
New Jersey created its legislation to permit online gambling in late 2013. Since then, its iGaming market has gone from strength to strength, consistently experiencing market and revenue growth.
The latest data from the New Jersey Division of Gaming Enforcement states that gaming revenue year-to-date (October 2025) was $5.74 billion, 10% more than in October 2024. $2.39 billion of that came from online gambling and $2.44 billion from land-based casinos. The other $914.6 million came from sports wagering. Of all the seven states, New Jersey consistently generates the most income, with no other state making it into the billions.
New Jersey residents have 30 of the best American casinos to select from. They’re all completely legal, licensed, and regulated online platforms.
Delaware
Delaware was quicker than New Jersey to regulate online casinos, enforcing its legislation since 2012. It did, however, prevent residents from making any sports bets, but that was also overturned at the end of 2023 with a hefty tax rate of 50%, so sportsbooks are not necessarily having the best experience.
According to the latest data from the Delaware Lottery, the total revenue across all regulated iGaming sectors reached $85,491,118 by the end of the 2025 fiscal year in June. Looking at the data, that’s more than double the $31,935,265 revenue generated by the end of the fiscal year 2024. A lot of that is because iGaming in Delaware now covers online sports betting (Delaware Lottery).
Despite legalizing online casinos, there are only three state-registered ones for players to select from.
West Virginia
West Virginia was the 5th US state to legalize online gambling in 2019. Since then, they’ve managed to consistently generate big revenue streams from multiple iGaming sources. Every year, they’ve broken their revenue record, generating $227.4 million compared to $144.4 million from online casinos alone. In October 2025 alone, online casinos generated $34,710,510 and $5,450,305 from sports betting (iGamingNews).
According to the most up-to-date numbers for November 2025, there are 11 online casinos legally regulated and operating in West Virginia.
Pennsylvania
Pennsylvania legalized iGaming in 2017, and, like every state that does it, they’ve managed to consistently beat the previous annual revenue numbers year after year. 2025 was no different, with the Pennsylvania Gaming Control Board reporting a total gaming revenue of $582,339,535 for August 2025, an increase of 14.15% year-on-year.
iGaming slot revenue outperformed any other numbers, generating $179,336,027 in August 2025 compared to $138,331,723 in August 2024, marking a 29.64% increase in generated revenue (PA Gaming Control Board).
As of November 2025, there are 22 online, fully regulated casinos for residents to play on.
Michigan
Michigan legalized online gambling around the same time as West Virginia in 2019.
Following the trend, Michigan is no different from the states we’ve already mentioned that are smashing yearly revenue numbers. The latest figures, released for October 2025, state that Michigan’s commercial and tribal iGaming platforms generated a combined $352.3 million in gross receipts from iGaming.
That’s a 16.4% increase from September 2025 alone and a 31.8% year-over-year increase from September 2024. And $278.5 million of that came from online casinos, marking a monthly all-time high from the state’s 14 digital platforms (StateofMichigan.Gov).
Connecticut
Connecticut was late to the legalization party, permitting legal online gambling since 2021. And, you guessed it, since then, the industry has consistently reached revenue highs year-over-year.
As of August 2025, Connecticut generated $153.7 million, a 23.9% year-to-date increase (Demand Sage). And in October 2025, online gaming revenue alone reached $55,638,370, and sports betting generated less than half of that, totalling only $21,779,851.
All of that iGaming revenue is impressive considering the state only has two fully operating and legal iGaming platforms.
Rhode Island
Saving the newest until last, Rhode Island didn’t manage to legalize iGaming until 2023, although it did try to do so for many years before that.
Looking at Q3 2025 numbers, the state has reported a massive 45% increase in iGaming and sports betting wagers, generating a total of $462.3 million year-over-year. May was the most impressive, with the month seeing a 113% increase in iGaming revenue year-over-year to generate a monthly figure of $4.8 million (Gaming Intelligence).
Again, those are impressive figures considering, similar to Connecticut, there’s only one legalized iGaming platform making all the money.
The state-by-state revenue run-through shows us how active the market is and the potential for the other states if they were to follow the same path of legalizing iGaming. There are six states, Maryland, Virginia, Indiana, Wyoming, Massachusetts, and New York, currently with bills they’re trying to pass into law to legalize iGaming, so let’s see if it actually happens.
