Where Can You Legally Play Online Casino Games in the US?

B. Atanasov
Boris Atanasov is an iGaming writer with over four years’ experience, creating engaging content on slots, video poker, roulette, and blackjack.
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The US online gambling industry has grown by leaps and bounds over the last decade, with an increasing number of states passing legislation to legalize and regulate remote wagering in its various forms. Remote gambling activities are generally grouped into three main categories: online sports wagering, online poker, and online casino games.

Each state has a unique stance on what is legal and what is not, since gambling is regulated at both the federal and state levels. Some states allow legal sports betting only, while others have expanded their range of legal gambling products to include online casinos and online poker. In essence, what is legal in one state may be illegal in another.

The focus of today’s article falls specifically on online casino games and where you can play them legally in the US. Also included in this publication is a complete breakdown of the legal forms of remote gambling in each state, along with information about several major pieces of gambling legislation that have shaped the current landscape in the country.

Gambling Legislation in the US

Remote gambling in the US is regulated by an intricate network of federal and state laws that continually interact. Many gamblers struggle to navigate this complex legislative landscape and often fail to distinguish between legal and illegal gambling activities.

Federal Gambling Legislation
State Gambling Legislation

What Forms of Gambling Are Legal and Where?

What Forms of Gambling Are LegalMost states have already started to regulate remote gambling in one form or another in an attempt to raise additional revenue and prevent taxable revenue from leaking. Retail and online sports betting are now legal in many parts of the country. Unfortunately, we cannot say the same for online casino games and poker, which remain unregulated in most states for the time being.

The table below provides a state-by-state breakdown of legal online gambling activities in the US. Keep in mind that the regulatory climate in the country is constantly changing. Certain states may expand their range of legal betting options in the future.

State* Online Casinos Online Sportsbooks Online Poker
Arizona N/A Regulated N/A
Arkansas N/A Regulated N/A
Colorado N/A Regulated N/A
Connecticut Regulated Regulated N/A
Delaware Regulated Legal Regulated
Illinois N/A Regulated N/A
Iowa N/A Regulated N/A
Indiana N/A Regulated N/A
Louisiana N/A Regulated N/A
Michigan Regulated Regulated Regulated
Massachusetts N/A Pending Launch in 2023 N/A
Maryland N/A Regulated N/A
Nevada N/A Regulated Regulated
New Jersey Regulated Regulated Regulated
New Hampshire N/A Regulated N/A
New York N/A Regulated N/A
Oregon N/A Regulated N/A
Ohio N/A Regulated N/A
Pennsylvania Regulated Regulated Regulated
Rhode Island N/A Regulated N/A
Tennessee N/A Regulated N/A
Virginia N/A Regulated N/A
Washington N/A Allowed on Tribal Reservations Only N/A
West Virginia Regulated Regulated Regulated
Wyoming N/A Regulated N/A
Wisconsin N/A Allowed on the Oneida Nation Reservation N/A

*Only states that regulate at least one form of remote gambling have made the list.

Remote sports wagering is legal in Delaware, but the state has yet to launch locally licensed online sportsbooks. For the time being, internet users in Delaware can legally participate only in daily fantasy sports contests.

States with Legal Online Casinos

States with Legal Online CasinosIn 2011, the US Department of Justice (DOJ) revisited the Federal Wire Act of 1961 and issued an official opinion stating that this outdated piece of legislation applied only to interstate sports wagering. Eight years later, the DOJ reversed its stance.

Under the current interpretation, the legislation applies to all forms of gambling. Nonetheless, the 2011 memorandum opened the door for several states to legalize online poker and other forms of remote gambling that are unrelated to sports.

States That Allow Online Gambling

1Delaware

Delaware is a pioneer in this field as it became the first state to legalize online casino gaming and poker in 2012. Locals initially had access only to free online slots, table games, and poker. Real-money internet gambling arrived two years later via the websites of the land-based casinos in Dover, Delaware Park, and Harrington.

Residents have access to a variety of real-money games, including online slots, roulette, blackjack, and video poker. Players can fund their online gaming accounts with credit and debit cards, bank transfers, and virtual wallets like PayPal. The Delaware Lottery Commission oversees the remote gaming industry in the state.

2Michigan

The Mitten is one of the newest members of the expanding online casino scene in the US. The local remote gaming industry has grown by leaps and bounds since its 2021 launch, giving residents around a dozen casino apps to choose from.

Some of the major brands operating in the state include Caesars, BetMGM, WynnBET, BetRivers, FanDuel, and Stars Casino. Residents can enjoy a huge selection of online slots, progressive jackpots, video poker, live dealer games, and RNG table games.

Gambling companies and software providers must obtain permission from the Michigan Gaming Control Board before they can legally serve the local market. Both operators and players are taxed in Michigan. Operators pay a 19% tax on their gross gaming revenue, while players have 4.25% of their winnings withheld.

3Connecticut

Similar to Michigan, Connecticut embraced legal remote gaming in 2021 with the passage of Public Act 21-23, legislation that authorized the Mohegan and Mashantucket Pequot tribal nations to offer a range of online casino games. The Mohegan tribe teamed up with FanDuel for its online gambling platform, while the Mashantucket Pequot nation partners with the rival DraftKings.

Residents of the Nutmeg State can choose from a broad variety of casino games supplied by industry giants like IGT and NetEnt. Anyone can join the online action as long as they are physically located in Connecticut, meet the minimum age requirement (21), and are not on the state’s exclusion list. Locals can self-exclude for one to five years or permanently.

4New Jersey

New Jersey has become synonymous with gambling, so it is only fitting that the state is home to a well-developed and strictly regulated online gaming industry. Locals can choose from plenty of legal betting options, with roughly a dozen online operators calling the Garden State home. Among them are major industry names like Harrah’s, Bally’s, and the Golden Nugget.

Local regulations require licensed operators to implement geolocation software to determine the exact whereabouts of each customer. Similar to other states, players must be physically located within New Jersey to register and gamble via licensed casino apps. Locally licensed online operators are taxed at a 17.5% rate.

5Pennsylvania

It took years for legal online gaming to arrive in Pennsylvania, but the Keystone State finally embraced it in 2019. More than a dozen online casinos now operate here under the strict oversight of the Pennsylvania Gaming Control Board. These casinos cater to local internet gamblers with a wide range of quality products, from the hottest online slots to table classics like roulette, baccarat, and blackjack.

In addition to standard withdrawal options like cards, electronic checks, and bank wire transfers, players can cash out their winnings at one of the land-based partner casinos that run the gambling sites. Keep in mind that gambling winnings are considered taxable income in Pennsylvania and are taxed at a rate of 3.07%.

6West Virginia

West Virginia joined the ranks of the iGaming states in March 2019 after the passage of the West Virginia Lottery Interactive Wagering Act. The legislation allows each land-based gambling venue in the state to operate no more than three mobile gaming skins. Licensed operators fall under the regulatory scope of the West Virginia Lottery Commission.

Some of the largest gambling companies in the country have struck deals with local brick-and-mortar casinos, including major industry players like PokerStars, GVC Holdings, and DraftKings. Under West Virginia law, players’ profits are not subject to state withholding taxes unless the winners refuse to provide proper identification, in which case a 6.5% tax rate applies.

Further Online Gaming Expansion Is Possible

Further Online Gaming Expansion Is PossibleLegal online gaming options remain limited, with Pennsylvania, New Jersey, West Virginia, Delaware, Michigan, and Connecticut being the only states that regulate remote casinos.

Although not as prevalent as online sportsbooks, the iGaming segment is slowly but steadily growing its footprint in the US. More states are expected to follow suit in the near future, as Nevada, New York, Indiana, and Illinois are all making a push for the legalization of online gaming.