Legislators from States Promoting Gambling Propose Tax Rates of 15% to 25% for Online Casinos

Fresh Take:

Writer: Grant M. (Former Virginia Tech grad, ex-NCAA track athlete, and avid sports fan, sports bettor, and industry insider)

The Skinny on Online Casinos Across the U.S. in 2025

A Glimpse into the Current Climate

While online gambling is generally deemed illegal at a federal level, individual states have the power to legalize it via specific laws or tribal agreements. As of the present, a mere 7 states have hopped aboard the online casino bandwagon: New Jersey, Delaware, Pennsylvania, Michigan, Connecticut, West Virginia, and Rhode Island. Nevada offers online poker but not full-fledged casinos yet.[5]

Understanding Tax Rates

Tax rates for online casinos vary from state to state, with examples such as New Jersey's 17.5% tax on gross gaming revenue and Pennsylvania's 16% for slots and 14% for table games and poker. Different states may implement unique tax structures according to their particular statutes.[5]

Legal Online Casinos Galore

Among the states that allow online casinos:

New Jersey
Delaware
Pennsylvania
Michigan
Connecticut
West Virginia
Rhode Island

Bills and Proposals Galore

Multiple states are deliberating over or have proposed bills to legalize online casinos in 2025, including:

Illinois
Maine
Massachusetts
New Hampshire
New York

Revenue and Expansion

In 2024, regulated online casinos generated a whopping $8.4 billion in revenue, marking a 29% surge compared to 2023.[5] The industry's continuous growth highlights the progressive legalization of online gaming activities across various states.

The gray area of online gambling lies with the social casinos that operate under the sweepstakes model, and are generally legal in all 50 states.[2]

Parting Shots

The landscape of U.S. online casinos is ever-changing, with more states entering the fray and diverse tax structures being implemented. Keep an eye on the legislative activity in various states to stay informed about the expansion of online casino operations.

[6] U.S. Online Casinos: An Overview of Current Landscape and Legal Considerations. [Accessed 4th December 2024]. Available from: https://www.statista.com/topics/1091/online-gambling-and-casinos-in-the-us/(Topic covering the current state of online casinos in the United States, including various aspects of the industry and laws)

Grant M., with his background as a sports fan, sports bettor, and industry insider, offers a fresh perspective on the US online casino landscape in 2025.
Despite federal prohibitions, individual states can legalize online gambling through specific laws or tribal agreements, with 7 states currently permitting online casinos.
Tax rates for online casinos vary by state, with New Jersey imposing a 17.5% tax on gross gaming revenue and Pennsylvania taxing slots at 16% and table games and poker at 14%.
States like Illinois, Maine, Massachusetts, New Hampshire, and New York are considering or proposing bills to legalize online casinos.
In 2024, US regulated online casinos generated $8.4 billion in revenue, representing a 29% increase from the previous year.
Social casinos operate under the sweepstakes model and are generally legal in all 50 states.
The ongoing legalization of online gaming activities and changing legislative landscapes warrant continuous monitoring to stay informed about the expansion of online casino operations.
Entities in the sports-betting and casinos industries, including those specializing in slot machines, progressive jackpots, and poker, should keep an eye on these developments to assess potential market opportunities.

Online gambling taxation proposal: a 15-25% tax rate for digital casinos and prohibition of credit card deposits, proposed by the National Council of Legislators from Gaming States.

Legislators from States Promoting Gambling Propose Tax Rates of 15% to 25% for Online Casinos