Online casinos are no longer a fringe topic in the U.S. The landscape has changed fast, and several states not only legalized iGaming but are now raking in serious cash. Let’s look at which states are leading the pack in 2025, how their online casino laws developed, and what the revenue numbers say.
What States Currently Have Legal Online Casinos
As of 2025, seven states allow full online casino games, such as slots, table games, and poker, plus one state that offers online poker only.
The seven states with full iGaming are New Jersey, Pennsylvania, Michigan, Connecticut, Delaware, West Virginia, and Rhode Island. Nevada is the only exception, with poker only.
That means the online casino market is still relatively concentrated, but the states that went live have seen significant returns. A few of them are clearly out in front for anyone who wants to play casino games online legally and safely.
Top 3 States by iGaming Revenue in 2025
According to the latest reports, the top three states by online casino revenue in 2025 are:
- Pennsylvania
- Michigan
- New Jersey.
Each of these states took a different path to legalization, and their revenue numbers show just how big a business iGaming has become.
Pennsylvania
Pennsylvania legalized online casinos in 2017 as part of a sweeping gambling expansion bill. The rollout included online slots, table games, poker, and, later, mobile sports betting.
Oversight was handled by the Pennsylvania Gaming Control Board, which set up a strong licensing and taxation framework right out of the gate.
Revenue Highlights
Pennsylvania is now the leader in online casino revenue. In 2024, the state’s iGaming market generated around 2.7 billion dollars. Online casino and mobile sports betting combined made up more than half of the state’s commercial casino revenue. By mid-2025, monthly gaming revenue was topping 550 million dollars, with iGaming alone up more than 30 percent compared to the previous year.
Michigan
Michigan joined the online casino party in 2021, and the launch was a fast success. The state allowed both commercial and tribal operators to participate, which made for a highly competitive and diverse marketplace. Around the same time, online sports betting also went live, giving Michigan a well-rounded digital gambling scene.
Revenue Highlights
Michigan has quickly become a powerhouse. In 2024, its online casino revenue was already in the top three nationwide. By August 2025, Michigan hit a record 263 million dollars in monthly iGaming revenue, representing more than 30 percent growth compared to the previous year.
New Jersey
New Jersey was the pioneer. The state legalized online casinos back in 2013, making it the first to go all in on internet gambling. At the start, servers had to be located in Atlantic City casinos, and regulations were tight. After the Supreme Court struck down the federal sports betting ban in 2018, New Jersey added online and retail sports betting.
Revenue Highlights
Even after more than a decade, New Jersey remains a leader. In 2024, its iGaming revenue hit 2.4 billion dollars, up nearly 25 percent from the year before. The state’s total commercial gaming revenue reached a record 6.3 billion dollars, and online play formed a considerable portion.
In August 2025, New Jersey posted its highest-ever monthly total at about 248 million dollars.
What These Numbers Tell Us
The numbers show that online casinos in the U.S. are still on a steep growth curve. Between 2023 and 2024, overall iGaming revenue in legal states grew nearly 30 percent.
States that legalized early, like New Jersey and Pennsylvania, have bigger and more stable markets. Newer states such as Michigan are scaling up quickly and showing strong demand. How states choose to tax and regulate these games also plays a significant role in growth, since higher taxes can limit operator investment while competitive frameworks encourage innovation.
Monthly records in 2025 also suggest that the market is nowhere near slowing down. Instead, online casino revenue will keep hitting new highs as more players get comfortable playing on their phones and laptops.
iGaming’s Heavy Hitters in 2025
To know which states won the online casino race in 2025, look at Pennsylvania, Michigan, and New Jersey. Each took a different road. Pennsylvania created a strong regulatory model and never looked back. Michigan jumped in later but has grown fast, and New Jersey has the veteran status of being the first mover in the market. Together, these three states show what regulated iGaming can look like when done right. And with other states considering legalization, the U.S. online casino map could look very different a few years from now.
