2026 is shaping up to have a greater impact upon U.S. gaming laws than any other since the U.S. Supreme Court’s decision (PASPA) which opened the floodgates for states to legalize sports wagering nationwide eight years ago. The 2018 U.S. Supreme Court decision created an environment where each state would create its own regulations, creating almost a decade of state-by-state legislative action. After eight years of state-by-state legislation regarding sports wagering; the front line has moved from sports wagering to online casinos; and increasing numbers of state legislators will begin to debate if they want to introduce iGaming into their states’ laws and if so, under what conditions and at what tax rate.

It is difficult to view the current environment as either overly optimistic or overly cautious. While some jurisdictions appear to be moving quickly to implement online casino gaming, others seem to be intentionally delaying the implementation process. Still, many jurisdictions are actively working to block this type of gaming. At the same time, the ongoing discussion of whether Washington needs to take a larger regulatory role in iGaming has re-emerged, in a manner that appears more serious to the industry than it had in years past.

The iGaming Expansion Push

US States That Have Legalized Taxed Regulated Online Casino Gambling

As of today, six U.S. states have legalized taxed regulated online casino gambling; NJ, PA, MI, DE, WV and CT. Each of these jurisdictions has shown through data collected since the beginning of their respective iGaming initiatives that they generate significant amounts of tax revenue from iGaming without cannibalizing land based casino revenues at the level that was forecasted by those who oppose iGaming.

This body of evidence is being used as a basis for new legislative efforts in over a dozen other U.S. states.

Legislative Momentum Building In These Fourteen States

These are some of the states that have the greatest potential to move forward on iGaming legislation in 2026:

• Illinois – This week, HB 1167, which will allow online casino gaming to be operated under the jurisdiction of the Illinois Gaming Board was introduced in the Illinois General Assembly. The Bill passed through its assigned Committee in late January and is waiting for a final vote by the entire house. Illinois appears to be the most likely candidate to become the next state to legalize iGaming, given estimates that suggest this could generate nearly $400 Million annually in tax revenue.
• New York – There have been bills introduced in both Chambers of the NYS Legislature. However, disagreement among lawmakers regarding how much tax should be applied (a range from 25%-50%) and how many licenses should be issued continues to slow down what might otherwise appear to be inevitable movement towards passage. Hearings were held again in March 2026.
• Indiana – An Indiana State Senator sponsored a bill that allows mobile casino gaming for current licensed brick & mortar casino owners in IN. This Bill recently passed a Senate Committee and has good prospects of passing on the Floor of the Senate if leadership can schedule a vote before the Session ends.
• Maryland – Maryland’s legislature previously voted twice against iGaming in previous years. As part of an attempt to build greater support for an amended version of the Maryland iGaming bill that changed the way revenue generated from iGaming would be shared with the horse racing industry, the amended version moved out of a committee in early 2026.
• GA – GA is primarily focused on allowing sports wagering. While the sports wagering bill does provide a mechanism for online casinos to operate within 24 months after sports wagering launches, Georgia is a two-stage expansion state that we will monitor closely.
• MO – MO voters approved sports wagering through referendum in Nov. 2024. The Missouri Gaming Commission is working on rule-making and expects to issue online gaming operator licenses prior to year-end.

State-by-State Legislative Tracker

The Tax Rate Debate: A Fault Line Across Every State

One central theme that runs through all of the active legislative debates for iGaming and sports betting in 2026 is the issue of tax rates. What may seem like a very minor issue indeed has significant impacts – on operators, on customers, and on whether the actual goal of creating an operating marketplace via legislation can be accomplished.

The experience of New York State with respect to sports betting provides an example of what happens when a high tax rate is applied to this space. When New York imposed a 51% Gross Gaming Revenue Tax on its Mobile Sports Books – which was the highest tax rate in the United States at the time – the result was a tremendous amount of money generated for the State; however, the operators were able to provide no more than limited amounts of promotional spend, odds competition, and product investment based upon their very thin margins. As a result, New York legislators are considering whether they should also impose a 51% tax rate on iGaming, an idea that has created great concern among operators who have begun actively campaigning for a tax rate much lower than that contemplated for I-Gaming, such as the 15% Online Casino Rate that exists in New Jersey.

There are three general positions being taken regarding taxation of sports betting and iGaming:

• High Tax Advocates believe that because gambling is a vice, the State should take as much money as possible from it and that operators will continue to operate under very thin profit margins in order to enter the largest potential marketplace available.
• Low to Moderate Tax Advocates believe that any tax rate higher than 20-25% drives players away from regulated operators and onto unregulated off-shore websites; creates disincentives for regulated operators to invest in responsible gaming technology and other products designed to improve player safety; and therefore results in less stable long-term revenue for both regulated operators and the State, as compared to a healthy, well-funded regulated market.
• Industry-wide consensus indicates that a GGR tax rate of 15-20% strikes the best balance between generating state revenue goals and establishing a commercial environment that allows regulated operators to make investments necessary to create and maintain successful businesses – similar to models already adopted in Pennsylvania (16%), Michigan (20-28% depending upon game type), etc.

As stated earlier, the tax rate chosen for regulation of sports wagering and/or iGaming will likely greatly impact whether some of the jurisdictions which are closest to finalizing regulations will establish a successful regulated marketplace where regulated operators can compete effectively and generate profits sufficient to justify continued operation within those jurisdictions.

Responsible Gambling Legislation: A Growing Priority

Although expansion discussions have increased in 2026, there appears to be significant growth in laws enacted by states, which focus solely on developing responsible gaming policies (regulations), versus laws focused on expanding entry points for the regulated sportsbook marketplace.

Several states that were among the first to legalize sports wagering after PASPA, and who now are regulating their initial framework, are reviewing the regulation for strengthening protections for consumers.

Examples of such developments include:

• NJ has put forth proposed changes to Division of Gaming Enforcement regulations requiring both sports books and online casino operators to provide customers with a mandatory prompt for a minimum deposit limit upon creating a new account – and not merely as an optional feature;
• Michigan is reviewing the internet gaming regulations to increase the requirements related to “reality checks” (notifying players) and “session time reminders”;
• In PA, lawmakers had hearings in February 2026 regarding a bill to establish a state-wide self exclusion list; this list will allow for cross-platform inter-operability i.e. if a player excludes themselves from one of the licensed operator’s platform they will be excluded from all of them.

What Players Should Know

The practical realities for the player will be fairly easy to determine. Online Gambling is legal and safer; it is also fairer and has better protection for the player than an offshore alternative. As states continue to create legal frameworks for online gaming they have created strong regulatory bodies. However, the time frame to expand online gaming continues to be very uncertain. Legislative sessions can be difficult to predict. Elections impact legislation. A single vote from a committee can delay a bill one year.

For players in states where there is no legalized iGaming, the best advice is to monitor your legislatures’ session calendars. Monitor which bills pass through committees. Committees are the first sign of whether a piece of legislation will move forward. Engage with advocacy groups that support expanding regulated gaming. The U.S. Map of Legal Online Gaming is continuing to be written – 2026 may add more to the map than any other year since 2018.