Internet Casinos Thrive in 6 States. So Why Hasn’t It Caught on More Widely in the US?

A Decade of Digital Success: The Impact and Future of Internet Casino Gambling in the U.S.

In the past decade, internet casino gambling has proven to be a lucrative venture in New Jersey, generating nearly $7 billion in revenue for casinos and affiliates. This online platform has contributed over a billion dollars in tax revenue to the state, playing a crucial role in sustaining Atlantic City’s casinos during the COVID-19 pandemic shutdown.

Despite its success in a few states, the widespread adoption of internet casino gambling has been limited, with only six states currently offering this form of entertainment—New Jersey, Connecticut, Delaware, Pennsylvania, Michigan, and West Virginia. (Nevada focuses on internet poker, and Rhode Island’s online casino bill is set to take effect in March 2024.)

Various factors contribute to the slow expansion of online casino gambling across the U.S. Some concerns, such as the fear that it might divert gamblers from physical casinos, are deemed unfounded by analysts. Additionally, the prioritization of legalizing sports betting, which is predominantly done online in two-thirds of the states, has taken precedence.

Proponents of internet casino gambling anticipate a broader adoption in the near future. One driving force is the conclusion of the wave of federal pandemic stimulus funding, prompting states to seek new sources of tax revenue. As this financial landscape evolves, more states may embrace the success and potential of online casino gambling.