While over 38 US states currently allow legal sports betting, only seven allow legal iGaming. The year ahead could change this, and several states are stronger contenders than others for legalizing iGaming in 2026. They all face different legal and political dynamics that affect the decision.
Where iGaming is already legal
US online casinos where iGaming is legal are situated in New Jersey, Michigan, Delaware, Pennsylvania, West Virginia, Connecticut, and Rhode Island. The betPARX online casino app is available to residents in many states.
Strong contenders for legal iGaming in 2026
New York
Legalization of iGaming is an attractive prospect due to the size of the population and fiscal pressures. However, political interests and the concerns of existing casinos about ‘cannibalization’ make the path forward complex. Current proposals are for a 30.5% GGR tax rate. If iGaming became legal in New York, it could change the U.S. market significantly. Senator Joseph Addabbo has repeatedly pushed proposals, and in 2025, he refiled an online casino expansion bill.
Maryland
Maryland is seen as a top-tier contender, as the issue already has serious legislative momentum. The path is also hindered here by politics and casino opposition, with labor concerns also in the mix. The conversation isn’t starting from scratch, and revenue pressure is a driver.
Illinois
Illinois has a history of gaming expansion, and it’s a large market with a well-established gambling ecosystem. It could quietly and efficiently adopt iGaming in the year ahead, using what it already has in place in terms of infrastructure and operator experience. In 2025, the governor publicly discussed iGaming as worthy of consideration, and two companion iGaming bills were filed.
Massachusetts
The state has a strong gaming commission and regulated sports betting. It is well-positioned to introduce iGaming. There’s likely to be an emphasis on structured licensing and consumer protection.
With the introduction of technology like AI and ML in online casinos, the tax revenue potential for states is higher than ever, and this is a significant factor in driving legalization.
Second-tier contenders
Indiana
In recent sessions, iGaming legislation has been introduced. The state has a mature casino industry and a track record of updating gaming policy. The legislature is familiar with regulating gambling. An iGaming bill was introduced in 2025 with moderate tax frameworks.
Virginia
The state also saw the introduction of iGaming legislation in 2025, but it could be challenging to get all stakeholders on the same page regarding the gaming model and protections for existing gaming jobs.
Plausible long shots
Maine
In Maine, there have been active discussions about bills, including one tied to tribal operator access. This is a smaller market, so regulation may be contingent upon state revenue needs.
Ohio
Despite an active sports-betting market, the governor is publicly opposed to iGaming expansion. This could slow down the path to legalization.
Colorado, Wyoming, and New Hampshire could also be long shots on the wider legislative map.
Why the next state to legalize iGaming matters
When looking at the US economy in 2026, the next state to legalize iGaming will help to change the iGaming market. Other states are likely to look at this state’s licensing models and tax rates. Its consumer protection frameworks will also be under scrutiny.
States that already have existing infrastructure and neighbors with legal iGaming have an advantage. If New York legalizes iGaming, it could start a domino effect in the Northeast. States like Maine could face pressure to legalize it to stop the outflow of gambling revenue.
What’s next for U.S. iGaming?
Legislators need to question their motives for legalization. Is it due to consumer demand, or do they just want relief from budget deficits by gaining tax revenue? The states that don’t just innovate but also pursue integrity will help to define the future of iGaming.
As pioneers in iGaming, such as New Jersey and Michigan, continue to see stable tax flows and responsible gaming frameworks, resistance in other states is likely to keep softening.
Analysts in the gaming industry predict that by 2030, over half of all U.S. states will have legalized iGaming. A huge sector could develop that surpasses sports betting in terms of revenue in the U.S.
