US Online Casino Legalization Update: Where Legislation Stands In Key States
By Drew Ellis
Published:
Each new year brings plenty of new discussion about gambling expansion in the United States.
This legislative year, online casino expansion has been a hot topic in multiple states.
One state actually passed an iGaming legalization bill, while a few others made notable progress towards it.
Here’s a recap of some of the states that have been pursuing online casino expansion and where their bill discussions currently stand.
Maine Legalizes Online Casinos, Lawsuit Follows
One state did cross the finish line in terms of passing online casino legalization. That was Maine, which Gov. Janet Mills allowed to let LD 1164 pass without her signature in January.
The bills calls for the four tribes of the Wabanaki Nations to exclusively offer online casino platforms in the state with a 16% tax rate on revenue.
Following the bill’s passage, the Oxford Casino Hotel filed a lawsuit looking to block the new law from being enacted. The bill prevents the two land-based casinos from being able to provide iGaming platforms, so the lawsuit accuses the state of unlawfully granting a monopoly for online casino gaming in Maine.
This lawsuit could ultimately determine the fate of iGaming in Maine in regard to when it launches, or if it launches at all.
Virginia Session Ends Without Passage
Virginia seemed to be on its way toward passing iGaming legislation this year, as the state Senate and state House of Delegates each passed their own bills in their chamber.
However, the two couldn’t reach an agreement on a single bill before their 2026 legislative session concluded over a week ago, ending hopes of Virginia online casinos this year.
Both bills agreed on two key points, a 20% tax on iGaming adjusted gross revenue, as well as a reenactment clause. That meant that even if legislation was agreed upon in 2026, it would need to pass both chambers again in 2027 to be passed on to the Governor.
No, Virginia looks to 2027 where it could further progress, but might also include a reenactment clause that could push any legalization to 2028.
Maryland Hears Arguments on iGaming
Maryland Sen. Ron Watson again introduced iGaming legislation in the state for the 2026 session and seemed to have more support this year.
During a hearing by the Maryland Senate Budget and Taxation Committee earlier this month, Watson projected Maryland could create up to $1.5 billion in tax revenue over the first five years of iGaming with a 20% tax on live dealer games and 40% tax on all other online casino games.
Watson cited Virginia’s increased efforts to legalize online casinos as a reason Maryland should do the same, despite opposition from those concerned about problem gambling and commercial casino cannibalization.
The hearing ended without a vote to advance the bill. The state’s legislative crossover day is March 23 and the 2026 legislative session concludes on April 13, leaving little time to act.
UPDATE: Watson withdrew his bill for consideration on Monday, March 23. Like he has in previous years, it will likely be introduced again in 2027.
Massachusetts Shelves iGaming Bill
The state of Massachusetts had discussions on an iGaming bill with House Bill 4431 on the table. However, last week, the bill was tabled for study during the government recess. Though, sometimes a study order just means the bill has been killed and won’t be reintroduced next session.
HB 4431 would have seen the state’s three commercial casinos get the ability to launch up to three different online casino platforms. Tax revenue for the state would be 15% of the gross revenue from each operator.
Rep. David Muradian, Jr. who introduced the bill, has expressed intention to introduce it again next session.
Drew Ellis has experience covering the gambling industries in North America and around the world. Decades of media experience provide him with the background to handle the complexities of different gambling laws and policies around the United States and North America. Ellis has primarily focused on online and retail casino news since 2021. Prior to working in the gambling industry, Ellis spent over 20 years in the newspaper industry, covering sports and the gambling. His work for The Mt. Pleasant Morning Sun and The Oakland Press was recognized with awards by the Associated Press and other media organizations. Drew has also contributed to the Detroit Free Press and the Associated Press.
