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Online Gambling Revenue by US State (2026)

Online casino gambling (iGaming) is the fastest-growing slice of US gambling — but it's concentrated in a handful of states. Across the seven states where it's legal, iGaming revenue hit a record $10.73 billion in 2025, up a remarkable 27.6%. Just three states — Pennsylvania, Michigan and New Jersey — account for roughly 90% of that total, with Pennsylvania alone taking $3.46 billion. Here's how online gambling revenue breaks down by state in 2026.

US online gambling (iGaming) at a glance

  • iGaming revenue across the 7 legal states reached a record $10.73 billion in 2025 (+27.6%).
  • Pennsylvania is the largest market at $3.46 billion (up ~28%).
  • PA, Michigan and New Jersey together make up about 90% of the national total.
  • Only 7 states have legal online casinos: PA, MI, NJ, WV, RI, DE and ME.
  • Tax rates range from ~15% to over 50% of revenue — a major draw for state budgets.
  • This is separate from online sports betting, which is bigger ($16.8B) and legal in far more states.

How much do US online casinos make?

Across the seven states with legal online casinos, iGaming generated a record $10.73 billion in gross gaming revenue in 2025, up 27.6% year over year — the strongest growth of any US gambling segment. Online casino play is expanding far faster than the physical casino floor, which grows only low single digits (see how much money casinos make). The catch: only seven states allow it, so all of that money comes from a small footprint.

Which states earn the most from online gambling?

Pennsylvania leads by a wide margin, with statewide iGaming revenue of $3.46 billion in 2025 (up nearly 28%). Michigan and New Jersey follow closely, each running around $270–280 million a month — roughly $3 billion-plus a year. Those three states alone are about 90% of the entire national iGaming market; the remaining four (West Virginia, Rhode Island, Delaware and Maine) split the rest.

State2025 iGaming revenueNote
Pennsylvania$3.46BLargest market; +~28%
Michigan~$3.2B~$278M/month, +31.8% YoY
New Jersey~$3.2B~$276M/month (mid-2026)
WV, RI, DE, ME~$0.9B combinedSmaller, newer markets
All 7 states$10.73BRecord; +27.6%

US iGaming revenue concentration (2025)

  • Pennsylvania$3.46B
  • Michigan~$3.2B
  • New Jersey~$3.2B
  • Other 4 states~$0.9B

Three states = ~90% of the $10.73B national total. Source: American Gaming Association, state regulators.

Only seven states currently permit legal online casino gambling: Pennsylvania, Michigan, New Jersey, West Virginia, Rhode Island, Delaware and Maine. That is far fewer than the 39 that allow online sports betting — iGaming is politically harder to pass because it competes directly with tribal and commercial land-based casinos and raises stronger problem-gambling objections. Several more states debate iGaming bills each year, but progress is slow. Where any of this is legal depends entirely on the state; see our gambling laws guide.

How is online gambling taxed by state?

Tax rates vary enormously, which is exactly why cash-strapped states keep legalizing it. Pennsylvania applies a 36% tax on online slots (plus separate rates on other verticals); New York's 51% rate on sports-betting revenue alone has generated well over a billion dollars a year; and Illinois layers a progressive surcharge that can reach 40% for the biggest operators. High tax states extract more per dollar of revenue, but operators pass some of that cost back through worse promotions and odds.

iGaming vs online sports betting — what's the difference?

They're often confused but are separate markets. iGaming (online casino) — slots, blackjack, roulette, live dealer — made $10.73 billion across 7 states in 2025. Online sports betting is bigger and far more widespread: about $16.8 billion in revenue across 39 states. Many states allow one but not the other. For the full sports-betting picture, see how much Americans bet on sports.

Frequently asked questions

How much revenue does online gambling generate in the US?

Online casino gambling (iGaming) generated a record $10.73 billion across the seven legal states in 2025, up 27.6%. Online sports betting is separate and larger, at about $16.8 billion across 39 states.

Which US state makes the most from online gambling?

Pennsylvania, with about $3.46 billion in iGaming revenue in 2025. Michigan and New Jersey follow, each running roughly $270–280 million a month. Those three states are about 90% of the national iGaming total.

Which states have legal online casinos?

Seven: Pennsylvania, Michigan, New Jersey, West Virginia, Rhode Island, Delaware and Maine. That's far fewer than the 39 states that allow online sports betting.

How much is online gambling taxed?

It varies widely by state — from around 15% to over 50% of revenue. Pennsylvania taxes online slots at 36%, New York taxes sports-betting revenue at 51%, and Illinois uses a progressive surcharge up to 40% for large operators.

Sources

Note: This page is general information, not financial advice. Figures are gross gaming revenue and change with each reporting period; state estimates from monthly data are approximate. 18+ · Gamble responsibly.