As we move closer to 2026, the landscape of online casino gaming in the United States is poised for significant changes.
The year is expected to be pivotal as several states are likely to actively debate or consider legislation to legalize online casinos, known in industry lingo as iGaming.
At present, seven states have fully embraced the iGaming model:
Rhode Island, interestingly, has plans for further expansion in 2026.
According to the American Gaming Association, the Rhode Island Lottery started looking for an independent expert to help them study the state's sports betting market. They want to find out whether letting more businesses offer sports betting to people in Rhode Island would be a good financial decision, setting a precedent for other states contemplating similar moves.
States with Strong Indications for 2026 Online Casino Consideration
Several states have shown strong momentum towards legalizing iGaming in 2026:
Massachusetts: Spearheading the efforts, Massachusetts has extended reporting dates for various bills from 2025, indicating serious legislative intent. With bills like H4431 moving through the legislative process, the state could see online casino licenses being issued to both in-state and out-of-state operators by mid-2026.
New York: Despite limited movement in 2025, Sen. Joseph Addabbo remains a steadfast advocate for iGaming as a priority in 2026. The expectation is that once downstate casino licenses are awarded, pressure will mount to tap into digital tax revenues.
Virginia: After a deliberate postponement in 2025, Virginia is expected to renew its push for iGaming legalization in 2026, backed by SB 827 and renewed stakeholder discussions.
Illinois: Faced with structural budget issues, Illinois continues to explore iGaming as a potential fiscal solution. Governor J.B. Pritzker has acknowledged its benefits, setting the stage for ongoing debate in 2026.
Maryland: Known for its multi-state efforts, Maryland anticipates legislative debates despite constitutional hurdles. Should political conditions align, it could emerge as a new iGaming state in 2026.
Indiana: Though previous efforts have stalled, the state is likely to revisit iGaming with new legislative sessions in 2026.
Emerging talks in Arizona and studies in Ohio could yield 2026 introductions.
Leading Contenders for iCasino Legalization
Industry analysts largely agree that the states most likely to legalize online casinos in 2026 are:
New York: With its significant online sports betting handle and sizable budget gaps, New York remains a top contender. While union resistance poses a challenge, the potential digital tax revenue from iGaming could be a game-changer. They are also adding three downstate casinos.
Illinois: The state's mature gambling market history positions it well for iGaming expansion. Recent statements from the Attorney General support this trajectory, driven by budgetary incentives.
Massachusetts: With a clear policy trajectory from sports betting to iLottery and likely iGaming, Massachusetts presents one of the cleanest political environments for legalization.
Maryland: Although slightly less certain due to timing and ballot intricacies, Maryland's repeated pushes and existing sports betting framework make it a strong contender if leadership commits to it in 2026.
While some states like Maryland present high potential, others like New Hampshire and Maine are also worth mentioning. Both have seen recent proposals but remain smaller players on the iGaming stage. However, their smaller populations shouldn't overshadow the strategic importance of their proposals.
Online Casino Legalization Challenges and Considerations
Despite these movements, progress remains uneven due to various concerns:
- Cannibalization of land-based casinos.
- Addiction risks associated with increased accessibility.
- Tribal gaming compacts and political considerations, including the 2026 midterm elections.
Additionally, although existing iGaming states report substantial tax revenues—such as hundreds of millions from Pennsylvania, Michigan, and New Jersey—debates remain complex. Many 2025 bills stalled, pushing consideration to 2026.
So, as legislative sessions kick off in 2026, the future of iGaming in the U.S. is uncertain but undeniably gearing towards digital expansion.
With states contending with fiscal pressures and recognizing the potential tax benefits, the path to iGaming legalization may be closer than ever for several key players. Whether through sweeping political alignment or incremental legislative progress, 2026 is set to be a transformative year for online casino gaming in America.
We'll keep an eye on New York, Illinois, Massachusetts, and Maryland—they just might lead the next wave of digital gambling innovation.
