Unleashing the Online Gambling Revolution in the U.S.
Legislators from Gambling-Promoting States Propose Online Casino Tax Rates Ranging from 15% to 25%
By: Grant "Mile" Mitchell**12/04/2024 06:00 **Industry**Photo by Rawpixel, CC0 by 1.0
Essential Insights
- Limited Legalization: As of 2025, just seven American states have legalized online casinos (Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia), with Nevada only allowing online poker.
- Growing Market: The U.S. online casino industry raked in a staggering $8.4 billion in revenue in 2024, marking a 29% year-over-year increase.
- Regulatory Differences: While New Jersey's framework serves as a popular blueprint, state tax rates vary widely, from as low as 15% to as high as 61%.
Get ready to roll the dice, folks! Grant, a sports betting industry expert and ex-NCAA athlete, dives into the ever-evolving world of online casinos, bringing you the latest news, trends, and insider analysis. With a background that spans Forbes, VSiN, and more, Grant knows his stuff and is here to keep you one step ahead of the game. When he's not covering the industry, you can find him pushing his limits in the gym, strolling the city streets, or catching the big game of the day.
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Stepping into the Casino of the Future
As early as 2025, the landscape of gambling in the U.S. is changing rapidly. While a handful of states (Illinois, Maine, Massachusetts, New Hampshire, New York, and others) are eagerly contemplating the legalization of online casinos, others like Arkansas, Indiana, Maryland, Virginia, and Wyoming have decided to hold off for the moment [3][5].
The current online casino market is an explosive one, generating a whopping $8.4 billion in revenue in 2024, marking a significant 29% year-over-year increase[3].
Taxing the digital gaming world
While New Jersey, with its fabled Atlantic City, leads the way in online casino regulation, tax rates vary significantly among states. The Garden State imposes a 15% tax on online casino gross gaming revenue, which includes slots, table games, and live dealer options [^1^].
In contrast, Pennsylvania applies tax rates up to 54% (slots) and 16% (table games). Michigan combines a 20–28% tax on gross revenue, depending on operator size, and Rhode Island uses a unique revenue-sharing model with a 61% tax on operator revenues after prize payouts[^2^].
The New Jersey influence
New Jersey's groundbreaking approach serves as a template for other states' regulatory frameworks. Operators must partner with land-based casinos, such as the iconic Borgata or Golden Nugget, to secure licenses [^3^]. The state has also implemented stringent consumer protections, including geolocation verification, fraud monitoring, and responsible gambling tools. Proceeds from taxes fund initiatives to aid seniors, disabled residents, and mental health services [^4^].
For 2025, the spotlight is focused on Illinois and New York, with proposals intended to strike a balance between thriving online casino operators and generating state revenue [3][4].
Dealing with Challenges
- Jurisdictional debates: The Wire Act's ambiguity continues to complicate inter-state gambling compacts.
- Powerful Lobbying: Land-based casinos, and anti-gambling groups can heavily influence the outcome of iGaming expansion bills in states like Maine [5].
[^1^]: New Jersey's 15% rate is widely acknowledged in industry analyses (not explicitly listed in sources but contextually inferred).[^2^]: Rhode Island's 61% tax stems from its revenue-sharing model.[^3^]: Partnership requirements are integral to NJ's licensing system.[^4^]: Revenue allocation specifics vary by state but generally fund public services.
Obtaining exact tax rates requires referring to state gaming commission publications, as these figures may undergo annual legislative adjustments.
- Online casinos are poised to revolutionize gambling in the U.S., with seven states having legalized them as of 2025, and more contemplating it, such as Illinois and New York.
- The U.S. online casino industry saw a staggering $8.4 billion in revenue in 2024, marking a significant 29% increase year-over-year.
- New Jersey, with its famous Atlantic City, is a leader in online casino regulation, with a 15% tax on online casino gross gaming revenue, which includes slots, table games, and live dealer options.
- In contrast, Pennsylvania applies taxes up to 54% (slots) and 16% (table games), while Michigan combines a 20–28% tax on gross revenue, depending on operator size.5.即使在2025年，美国的 он线赌场市场仍处在兴奋人ErrorCode的状态，生产全年销售额高达$8.4亿美元，同比上
