In 2025, five U.S. states pushed forward with online casino bills. Established markets in states like Pennsylvania and New Jersey continued to generate record-breaking revenues. Lawmakers became more aware of consumer demand for regulated online gaming and couldn’t ignore the revenue potential. Market expansions and regulatory shifts created both opportunities and challenges.
Breaking revenue records
In October 2025, New Jersey online casinos broke records with over $260 million for the month. Gaming revenue in New Jersey is almost $2.4 billion, a 22.6% increase from the same period last year. Revenue in Pennsylvania from online casino operators reached a record of over $251 million during October and a record of $2.8 billion for the 2024-2025 fiscal year.
Federal legislation
This year saw the federal government giving renewed scrutiny to the Wire Act’s application to online gambling. Legal challenges began to emerge in relation to the scope of the Act. This was particularly about interstate online casino operations and payment processing. Interstate online poker remains restricted, and online casino operators continue to run within state borders. Payment processors face increasing compliance requirements.
Some high-profile court cases in New York and Baltimore have drawn the attention of the federal government. They raised questions about whether the marketing tactics of some online casinos violated federal consumer protection laws.
The Department of Justice (DOJ) issued new guidelines on how to apply the Wire Act to emerging technologies. It specifically addressed cross-border payment systems and crypto payments.
Lawmakers started to question whether existing federal frameworks adequately address modern gambling practices.
State-level online gambling expansion
Pennsylvania enhanced its mobile betting provisions, and Michigan expanded its operator licensing framework. West Virginia made amendments to revenue sharing, and Connecticut began interstate compact negotiations.
Legislators in several states introduced bills to target sweepstakes casinos. The argument is that these casinos operate in a legal gray area.
Regulatory bodies in states introduced new compliance requirements, such as enhanced identity verification systems. They also made problem gambling detection tools mandatory.
Revenue-sharing agreements between states and tribal casino operators saw renegotiations in various jurisdictions.
American Gaming Association (AGA) oversight
The AGA issued comprehensive reports throughout the year, highlighting shifts in regulatory frameworks and changes in policies. It advocates for standardized compliance measures across states, such as standard responsible gaming protocols and advertising.
The AGA works with state regulators to develop best practices for overseeing online casinos. Collaboration with states this year involved addressing technical standards for geolocation and age verification. Industry stakeholders use the guidance of the AGA to navigate multi-state compliance requirements.
Market impact and industry trends
The online casino market experienced unprecedented growth in early 2025, and this change started to reshape how operators approached market expansion and consumer protection.
Mobile gaming dominance was apparent, with over 74% of online gambling happening on mobile devices in Q1 of 2025. This was evident in New Jersey, where iGaming revenue exceeded land-based casino revenue for the first time in Q1.
The Pennsylvania Gaming Control Board issued 18 cease-and-desist letters to sweepstakes operators in April, and many other states introduced legislation to ban sweepstakes casino games. Regulators argue that these operators circumvent the existing laws through a technical loophole. They see these unregulated operators as direct competition to regulated iGaming markets.
While online gambling has surged, land-based casinos have seen minimal growth. Data suggests that established gambling destinations with a strong tourism component are more resilient. Those who depend on local gamblers are more vulnerable to competition from online platforms.
Enhanced anti-money laundering (AML) protocols have become standard across licensed online platforms.
There’s a growing interest among consumers in cryptocurrencies, and this is likely to be one of the increasing iGaming trends in 2026.
Sporting events such as the Super Bowl drive significant betting volume. March Madness brought in just over $3 billion this year, which was an increase from $2.7 billion in 2024.
