Online casinos have gained significant traction in the U.S., shifting from a niche topic to a robust industry. Numerous states have legalized iGaming, leading to impressive revenue generation. This analysis explores the leading states in 2025, the evolution of their online casino laws, and revenue figures.
States with Legal Online Casinos
As of 2025, seven states offer a comprehensive range of online casino games, including slots, table games, and poker, while one state provides online poker exclusively.
The states fully embracing iGaming are New Jersey, Pennsylvania, Michigan, Connecticut, Delaware, West Virginia, and Rhode Island, with Nevada allowing only poker. This concentration among the states has translated to notable financial returns for those that have embraced online casinos.
Leading States by iGaming Revenue in 2025
Per the most recent reports, the top three states for online casino revenue in 2025 include:
- Pennsylvania
- Michigan
- New Jersey.
These states employ varied paths to legalization, reflecting the substantial growth of the iGaming market.
Pennsylvania
Legalized in 2017 through a broad gambling expansion, Pennsylvania’s online casinos include slots, table games, and poker, followed later by mobile sports betting. Oversight is the responsibility of the Pennsylvania Gaming Control Board, which established a robust licensing and taxation framework from the beginning.
Revenue Insights
Currently, Pennsylvania leads in online casino revenue, generating approximately $2.7 billion in 2024. Combined online casino and mobile sports betting contributed to over half of the state’s commercial casino income. By mid-2025, monthly gaming revenue exceeded $550 million, with a 30% year-over-year growth in iGaming.
Michigan
Entering the online casino market in 2021, Michigan’s swift success resulted from allowing both commercial and tribal operators. This led to a competitive landscape complemented by the launch of online sports betting.
Revenue Insights
In just a few years, Michigan has become a significant player in the market. By August 2025, the state achieved a monthly iGaming revenue of $263 million, marking over 30% growth when compared to the previous year.
New Jersey
As the initial forerunner in 2013, New Jersey pioneered online casinos by enforcing strict regulations and requiring servers to be located at Atlantic City casinos. Following the Supreme Court’s 2018 decision to overturn the federal sports betting ban, the state expanded into both online and retail sports betting.
Revenue Insights
Despite being in the market for over a decade, New Jersey remains a dominant force in iGaming, with $2.4 billion in revenue in 2024, a nearly 25% increase from the previous year. The state’s overall commercial gaming revenue reached an all-time high of $6.3 billion, with online activities making a substantial contribution. August 2025 saw it achieve a record monthly revenue of approximately $248 million.
Market Trends and Implications
The continued growth of online casinos in the U.S. demonstrates a significant upward trajectory. Between 2023 and 2024, legal states reported nearly 30% growth in overall iGaming revenue. Early adopters like New Jersey and Pennsylvania enjoy larger, stable markets, while newer entrants like Michigan are rapidly expanding. Taxation and regulatory frameworks also significantly affect market dynamics, with competitive structures encouraging investment and innovation.
Conclusion: The iGaming Landscape in 2025
In summarizing the online casino landscape of 2025, Pennsylvania, Michigan, and New Jersey emerge as the leaders. Each has carved out a unique path to success—Pennsylvania with its strong regulatory model, Michigan’s rapid growth, and New Jersey’s established presence. These three states exemplify successful regulated iGaming, suggesting a potentially transformed U.S. online casino landscape in the coming years as more states contemplate legalization.
