iGaming – Four US States That May Legalize it in Near Future

August 23, 2022 World Crime & Legal Industry Updates

Sports betting is legal in nearly three-quarters of the states. Within a few months, online sports betting will be allowed in more than half of the states. Online casinos are only in six states.

Sports betting is ubiquitous, even in states that have yet to legalize it. Ads for sportsbooks are prevalent online and over the air. Stadiums and arenas devote signage, and sports broadcasting crews now bring up odds in their event coverage – a taboo topic not long ago.

Online casino gaming doesn’t generate the same buzz. But what it does generate is money. A lot of it.

According to data from Spectrum Gaming Group, iGaming operators in New Jersey reported gross gaming revenues of $1.49 billion in the 12-month period ending in April. In Pennsylvania, operators there made $1.2 billion, while Michigan’s online casinos earned $1.18 billion.

Besides those three states, iGaming is also allowed in Connecticut, Delaware, and West Virginia.

Why Hasn’t iGaming Caught on in the US?
Online casino gaming has been legal for nearly a decade in the US. But as a panel at last week’s Racing and Gaming Conference at Saratoga in New York noted, there are a variety of reasons why iGaming has not caught on as sports betting has in recent years.

Here are just a few that were brought up at the conference: First, there’s no unanimity among gaming companies on online casinos. That includes tribal operators. Second, legislatures in several states are wary of dealing with expanded gaming topics, and third, most states aren’t in dire fiscal straits right now.

“A great driver of gaming adoption in the US, not shockingly, has been the need for revenue among states,” Howard Glaser, Light & Wonder’s global head of government affairs and legislative council, said at the conference. “States in the US received $393 billion in direct funding from the federal government through the federal stimulus over the last two years. Even states that spend quickly – and we’re in one of those – take a while to get through $400 billion of money.”

Still, Glaser said he believes as many as a dozen states may consider legalizing iGaming within the next three to four years. Of those, as many as six or seven may actually approve legislation during that time frame.

John Pappas is the state advocacy director for the pro-iGaming iDevelopment and Economic Association. He said that people can’t look at how sports betting has grown in recent years and apply that to legalizing online casino applications. It can take years to educate lawmakers about iGaming.