The online casino industry has seen significant expansion across the United States, with seven states now reaping substantial tax revenues.
Currently, online casinos are fully legalized and regulated in the following U.S. states:
- New Jersey
- Delaware
- Pennsylvania
- Michigan
- Connecticut
- West Virginia
- Rhode Island (the newest addition, legalized in 2024)
These states allow residents and visitors (age 21+) to play real-money online casino games, including slots, table games, and sometimes online poker, through state-licensed platforms
They generated more than $175 million in state tax revenue last month alone, with adjusted gross revenue hitting nearly $816 million. This, after a huge revenue-generating month in April, which piggy-backed off a strong month in March.
This marks a noticeable increase year-over-year, and showcases the online casino industry's rapid growth and potential.
How Fast Has Online Casino Revenue Grown?
Since its inception, online casino revenue has grown significantly.
Gross revenue from these operations was recorded at slightly over $898 million in May, reflecting a 33% increase from May 2024's total of almost $675 million.
Every participating state posted a minimum, individual, year-over-year growth of nearly 27%. In just the first five months of 2025, the total gross revenue for these states reached a staggering $4.25 billion, leading to state tax collections of nearly $825 million.
The American Gaming Association reported that the commercial gaming industry earned $6.18 billion in April from traditional casino games, sports betting, and online gaming. This figure is 5.6% higher than what the industry earned in April of the previous year, setting a new record for the month. The numbers continue to rise.
Leading States in Online Casino Revenue: Pennsylvania, Michigan, and New Jersey
Pennsylvania stands out as the leading state, generating $289 million in May gross revenue, a nearly 35% increase from the previous year. Though slightly below its record of almost $292 million in March, Pennsylvania remains the only state to have surpassed $1 billion in iCasino revenue thus far in 2025.
Michigan follows with a gross revenue of just under $252 million in May, marking an increase of almost 27% year-over-year. The state's adjusted gross revenue rose just over 32% to over $236 million, which is attributed to a change in taxation policies, and saw the state taxing 94% of gross revenues for nearly all operators.
In New Jersey, gross revenue reached nearly $247 million in May—a 28.5% increase over last year. Notably, FanDuel Casino achieved a new monthly revenue record for the third consecutive month in New Jersey, with over $54 million in revenue.
Record Performances in Other States
Other states have also showcased significant growth and record performances.
Connecticut, for example, achieved a monthly high of more than $61 million, a little more than a 32% increase from May 2024. Delaware's BetRivers recorded over $10 million and broke its previous record. It has already more than doubled its gross revenue from the same period last year.
West Virginia experienced a significant 104% increase in year-over-year revenue, reporting over $34 million. That's slightly short of its March record of $36.4 million. Meanwhile, Rhode Island's Bally's operation generated almost $5 million. They're celebrating a 110% year-over-year increase.
The Future of Online Casinos in the U.S.
The continuing upward trend of online casino revenue indicates a thriving and rapidly expanding industry across the United States.
Maine is awaiting a signature from its Governor that will legalize online casinos, while Ohio has two bills currently being discussed by lawmakers.
In places like Maryland, Massachusetts, Indiana, and New Hampshire, lawmakers are considering or actively debating legislation to legalize online casinos, but these efforts have not yet resulted in new laws as of mid-2025.
Many states that do not permit real-money online casinos offer online sports betting or sweepstakes casinos.
Bottom line: the online casino industry is generating more revenue than ever before. With states posting double-digit growth and setting new records year after year, it's clear that online casinos are becoming a significant component of state economies. As the industry grows, more states may explore legalization, further enhancing the reach and potential of online gaming in America.
