On the eve of the 2025 legislative sessions in various US states, will the gambling industry expand in the next 12 months, or will the hopes for new online casino states face the same fate as in 2024?
Last year, several states discussed whether to include online casinos in their services. However, no state crossed the finish line. Moreover, no state in the US has included online sports betting in its services.
At the beginning of the new year, several states have already pre-filed legal digital sports betting bills, and several state legislators have also committed to implementing the bill. However, legislators still seem to oppose mobile gambling.
In an October G2E speech, Brandt Iden, Vice President of Government Affairs at Fanatics Betting & Gaming, passionately defended igaming. It can bring in millions of dollars in tax revenue, make consumers safer, and create jobs. But Iden does not believe 2025 will be a watershed year—because states do not need money. At least not for now.
Iden stated at G2E that he expects a "cash crisis to occur in the next two years." "This budget cycle? Probably not. But the pandemic funds are running out... Legislators don't like asking voters for money, so they go to businesses first.
"My prediction is, I won't give you the name of a specific state, but I will look at state budgets, then say, which states have a history of gambling? So, what's the next state? A state that needs revenue (legalization of sports betting)."
Alabama and Texas will consider comprehensive expansion
Overall, the gambling industry will definitely be on the legislative agenda in Alabama and Texas.
Currently, both states do not offer many commercial gambling options—Alabama allows pari-mutuel betting and historic race machines at pari-mutuel facilities. Texas has a state lottery. But legislators and stakeholders in both states are working to expand the gambling industry. It is still unclear whether legislators in these two states will push for online gambling rather than retail or legal sports betting.
Previously, legislators in both states had proposed comprehensive bills covering everything from retail casino resorts to online gambling. However, so far, Icasino is not the cornerstone of the proposals in these two states.
In Michigan, a bill that raised the online casino tax by 1% expired at the beginning of the new year. Michigan is one of the seven legal gambling states, and stakeholders have been very successful. But the industry will closely watch Michigan after the governors of Ohio (2023) and Illinois (2024) pushed to raise digital gambling taxes.
As 2024 ends, a bill in Ohio that would have legalized online gambling expired. The bill would have allowed each of the state's 11 casinos to have a digital platform. But the proposal will not continue into the 2025 session, and the proposer's term has ended.
The Ohio Casino Control Commission (OCCC) launched digital sports betting on New Year's Day 2023. Since then, the governor has doubled the tax rate, and the regulatory body has tightened advertising guidelines. OCCC also added a rule prohibiting those who harass athletes because of bets. Considering this thoughtful approach, and the adjustments made to the already comprehensive laws over two years, online casinos seem likely to become a topic of discussion.
Here are the situations in other states that may discuss igaming in 2025:
Illinois
In 2024, legislators proposed three igaming bills, but none received support and will not pass in the 2025 session.
Similar bills in the House and Senate, HB 2239 and SB 1565, allowed for a 15% tax rate on digital gambling. The third bill, HB 2320, proposed a 12% tax rate.
Illinois was one of the first states to adopt the policy of legal sports betting. The Illinois Gaming Board launched retail gambling in March 2020 and a digital platform in June 2020. In 2024, the state issued its 16th retail casino license. Illinois is one of the few states that regulate video lottery terminals.
It seems that if the state government is interested in increasing tax revenue or creating new businesses, then online gambling will be the next opportunity.
Indiana
The state's legislators have been talking about the gambling industry, but there has been no substantial progress. Last year, a study by Spectrum showed that the total gambling revenue (GGR) could exceed $2 billion within three years, but legislators still have not made progress.
Perhaps now Indiana's legislators should consider other potential benefits of online gambling. The Indiana Environmental Reporter wrote in November: "Online gambling provides a modern solution. People don't have to drive to the casino, they can just log in at home. No cars, no emissions." The publication called the casino an "energy consumer" and pointed out that pollution starts when customers drive to the casino.
The idea that online gaming "is environmentally friendly" seems unlikely to influence Indiana (or other) legislators, but it is another tool for lobbying.
Louisiana
In mid-December, the National Council of Legislators from Gaming States held a convention in New Orleans. Leadership also took this opportunity to share their experiences in gambling with the Louisiana state legislature at a Senate hearing. Legislators and stakeholders outlined the main benefits—new sources of tax revenue and consumer protection. But Cordish Companies, which owns a casino in the state, opposed this. Cordish's General Counsel Mark Stewart called online gambling "gambling fentanyl" and stated that its social costs are "too high."
Louisiana's legislators seem unlikely to legalize it at this year's first educational session (which presented very contradictory views). But as with any issue, education is the first step.
Maryland
In 2024, Maryland became the focus of attention, and stakeholders were very excited after the House passed a legal online gambling bill. But due to the erosion issue becoming a key problem, the bill died in the Senate committee. Cordish Companies, which operates Maryland's Live! Casino, strongly opposed online gambling. Cordish expressed concerns about erosion... and continued to express these concerns at a December online gambling hearing in Louisiana.
Maryland's legislators and stakeholders now have time to reconsider—any gambling expansion in the state must be decided by voters. The earliest constitutional amendment could enter the ballot in November 2026.
Virginia
A bill pre-filed on December 31, 2024, and set to be submitted on January 8, would allow statewide igaming at a 15% tax rate. HB 827 calls for the Virginia Lottery Commission to regulate igasino, which currently oversees legal sports betting. It allocates 2.5% of annual tax revenue to problem and responsible gambling programs.
The proposal modifies current law, allowing online gambling operators to have up to three platforms. The application fee would be set at $1 million, and customers could use credit cards to fund their accounts. Operators would be taxed at 15%, and the proposal requires the state to issue rules by September 30.
Wyoming
According to a study by Spectrum Gaming Group, Wyoming could bring in hundreds of millions of dollars in tax revenue over the next five years. In 2024, legislators considered the topic, but were not yet ready to legalize it. Representative Bob Davis said he would reintroduce legislation including a 10% tax rate. According to Spectrum's study, if online casinos are launched in 2025, by 2029, Wyoming's total gambling revenue could reach $887 million (£717.3 million/€852.4 million), and tax revenue could reach $177 million.
"Wyoming has always been very proactive," Davis told the Cowboy State Daily. "That's how they did it with sports betting, and that's how they did it with skill games. They know what's happening, and we need to take action, take control of the situation.
"Another benefit it brings is the tax base. According to different studies and other data, gambling seems to involve a lot of money. Wyoming can use these taxes."
