Does Legal Online Gambling Make Sense for Every US State?

Since legislation changed in 2018, when the Supreme Court struck down PASPA, the status of gambling has varied in each state. That’s raised a lot of questions around what gambling laws should look like, and which forms of online gambling make sense for each state.

There are several activities that fit under the banner of legal gaming, including casino gaming, sports betting, and retail and tribal sports betting and casinos in-person. Daily Fantasy Sports aren’t classed as gambling, so they sit under their own regulation. Already, that’s a lot for each state to consider when creating a framework and making decisions around what should be authorized.

Options for US Players

For US players, there are lots of options, but it ultimately comes down to where you live. Some states have legalized sports betting only, while others have several legal online casinos and sportsbooks for players to choose from. For example, if you’re looking for California casinos online, the options are social casinos or offshore sites.

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Social casino gaming means players can enjoy games with tokens instead of real-money wagering. Offshore sites, on the other hand, are casinos based and licensed elsewhere that accept US players. Choosing a reputable and legal site is the best option, no matter where you are.

Online Gambling Status to Date

The legalization of online gambling began slowly in 2018, but quickly ramped up as other states saw how the model worked and succeeded in states like Delaware and New Jersey. Many picked up on the success of sports betting and stopped there, whereas others also introduced online casinos.

At present, 47 states have some form of legal gaming, and four do not. Of those, 32 have legal online sports betting. The number gets smaller when it comes to online casinos, though. They’re legal in eight states, including Michigan, Pennsylvania, West Virginia, Maine, Rhode Island, Connecticut, New Jersey, and Delaware.

Reasons For and Against Legalizing

From those numbers, it’s clear that not all states are interested in legalizing gaming in any form, or at least online casinos. As it comes down to the stance and laws of the state, it makes sense that they won’t all think the same. To understand that better, it’s useful to look at the reasons for and against legalization.

Revenue

One of the benefits reaped by states where it’s legal is the positive economic impact. The tracker for commercial gaming revenue shows that it reached $7.06 billion in November 2025. That’s a serious injection for any economy. The states see the benefit of that in tax revenue.

Most states have specific programs that outline where the money goes to help strengthen education and other vital parts of infrastructure. Bringing online casinos and sportsbooks into the state also plays a role in boosting employment. The financial and overall economic gains are clear.

Infrastructure and Responsible Play

There are several reasons why states choose not to legalize. For many, it's a moral question. However, that ties into two practical points. One of those relates to the negative aspects of gambling. Any state that chooses to legalize must have the appropriate framework in place to support responsible play. That includes guidelines, tools, support organizations, and education around problem gambling.

A responsible play framework is just one part of the infrastructure, which links to the second practical point around legalization. Online gambling requires infrastructure. It won’t make sense for every state to spend the money to set that up, especially if forecasts around the revenue they could gain aren’t positive.

Control

Another key aspect of making decisions involves thinking about controlling access to gambling sites. Legalization leads to regulation, safer environments for players, and control over the tax revenue. When states choose not to legalize, they risk losing control over the impacts of gambling.

That could mean losing players and revenues to nearby legalized states. It might also mean that players are more likely to seek out offshore options, where they aren’t as well protected. In those cases, the state won’t experience the benefits of revenue, but might still need to deal with the consequences of problem gambling, including citizens with addiction, economic problems, and poor mental health.

Final Thoughts

It’s clear that there’s no right or wrong answer to the question of legalization. There are benefits and drawbacks that each state has to consider to make the right choice for its residents and economic policy.

I (AKA CatBurg) have a lifelong passion for sports, especially football and basketball. I enjoy the thrill and excitement of sports betting and everything in between. My teams are (Packers #GoPackGo) and who I am betting on!