Tracking Online Casino Revenue by US State
Only eight states have legalized iGaming—and that’s a generous tally that includes the poker-only state of Nevada.
For the purposes of this article, an iGaming market is a market that has legalized and offers one or more of the following online products: slots, table games, and poker.
Those markets, along with their launch dates, are:
- Connecticut (launched October 2021)
- Delaware (launched in October 2013)
- Michigan (launched January 2021)
- Nevada (launched in April 2013)
- New Jersey (launched in November 2013)
- Rhode Island (launched in March 2024)
- Pennsylvania (launched July 2019)
- West Virginia (launched February 2021)
Comparing Legal Online Casino Markets by Revenue
The topline metric is financial and per-resident to level the playing field between large and small population states. For betting, a combination of handle and revenue seemed most appropriate given the variance in sports betting hold percentages. For online casinos, we will focus solely on revenue for the simple fact that, unlike sports, there is little variance in overall hold percentages.
The chart is incomplete because Nevada doesn’t report its online poker revenue. Still, as an online poker-only state, its per-resident revenue for the three months analyzed is likely under $1.
How States Rank as of 2025 Revenue Totals
- New Jersey: $313/resident (+22% vs. 2024)
- Michigan: $284.70/resident (+29%)
- West Virginia: $216.30/resident (+54%)
- Pennsylvania: $214.10/resident (+27%)
- Connecticut: $195.80/resident (+31%)
- Delaware: $111/resident (+76%)
- Rhode Island: $52.70/resident (+123%)
Factors We Considered
Each state has a unique structure that affects its year-over-year performance. As such, we need to dig deeper to explain how the rankings shake out the way they do.
The five factors that are playing a role in performance are:
- Market Competitiveness: States with open, competitive markets are consumer-friendly, which means lots of advertising and promotions to entice customers.
- Operator Burdens: High tax rates and licensing fees reduce marketing and are passed on to consumers.
- Market Maturity: iGaming markets tend to grow over time until they reach maturity. That growth can vary based on market penetration. Maturity takes at least five years.
- Products Offered: Many casino games are available, but not every state offers a full catalog. Some do not offer online poker.
- Mobile Sports Betting: Mobile sports betting is seen as a complementary product that can raise the market's maturity ceiling.
New Jersey Leads the Pack
- Market Competitiveness – 30+ unique brands
- Operator Burdens – $400,000 licensing fee; $250,000 annual renewal fee; $250,000 annual fee for compulsive gambling support; 19.75% tax rate
- Market Maturity – Live for over 10 years
- Products Offered – Poker available; no game type restrictions
- Mobile Sports Betting – Has been available for nearly 10 years
Along with Nevada and Delaware, NJ online casinos belong to one of the original three iGaming markets. New Jersey remains the per-resident leader but is no longer as dominant as it once was, as other states have now had time to catch up.
In addition to being a mature market, the Garden State has an open, competitive structure with no cap on the number of operators, no significant product restrictions, and a top-ranking sports betting scene. iGaming revenue growth exploded soon after the launch of mobile sports betting in New Jersey in 2018.
It's worth noting that New Jersey does not allow promo deductions, meaning operators pay the full statutory rate. New Jersey also raised its online casino tax rate to 19.75%, effective July 1, 2025.
Michigan Gaining on NJ
- Market Competitiveness – 15 unique brands
- Operator Burdens – $100,000 licensing fee; $50,000 annual renewal fee; 20-28% graduated tax rate on GGR
- Market Maturity – Launched in January 2021
- Products Offered – Poker available; no game type restrictions
- Mobile Sports Betting – Has been available since 2021
Despite launching almost 10 years after New Jersey's, the Michigan online casino industry has grown at almost an equal rate to the Garden State since 2021.
Michigan has generated about $12.2 billion in lifetime revenue since launching in 2021, resulting in around $3.1 billion in tax revenue. With a population of over 10 million people, it's now over $280 per resident, closing in on NJ's $300+ per resident.
This appears to be the only state capable of overtaking NJ in revenue per resident, thanks to its open market, product offerings, and continuing maturity. However, Michigan recently tightened its policy on promotional deductions, reducing its percentage on all but one internet platform from 10% to 6% at the start of 2025.
Pennsylvania Closing the Gap
- Market Competitiveness – Allows up to 39 unique brands
- Operator Burdens – $4-10 million licensing fees; $250,000 renewal fee every 5 years; 54% tax rate on slots, 16% on table games, 16% on poker
- Market Maturity – Launched in July 2019
- Products Offered – Poker and online lottery available; no game type restrictions
- Mobile Sports Betting – Has been available since 2019
The PA online casino market is competitive, doesn’t restrict products, is fairly mature, having launched in the summer of 2019, and possesses a strong sports betting market. Pennsylvania platforms' ability to deduct promo spending led to the Keystone State recording $231.2 million in taxable winnings, despite higher gross revenue in August 2025.
In fact, PA generates one of the highest total iGaming revenue of any state, though its large population significantly dilutes the per-resident figure.
Where the Keystone State falls short is in terms of operator burdens, as it taxes online slots at a rate of 54%.
West Virginia Quickly Growing
- Market Competitiveness – Max. 5 unique brands permitted
- Operator Burdens – $250,000 application fee; $100,000 renewal fee every 5 years; 15% tax rate
- Market Maturity – Launched in July 2020
- Products Offered – Online poker has been legalized, but there are no operators yet
- Mobile Sports Betting – Has been available since 2018
West Virginia's iGaming has been one of the fastest-growing markets since its launch in 2020. West Virginia's per-resident figure now sits about even with Pennsylvania, largely because WV's smaller population amplifies its strong absolute revenue growth.
Like Connecticut, the state hasn’t launched online poker sites, which could provide a small boost to overall West Virginia online casino revenue.
Connecticut Showing Signs of Growth
- Market Competitiveness – Two tribal gaming licenses permitted
- Operator Burdens – $2,000 annual license fee; 18% GGR tax rate (rising to 20% in May 2026)
- Market Maturity – Launched in October 2021
- Products Offered – Online poker has been legalized, but there are no operators yet
- Mobile Sports Betting – Has been available since 2021
Connecticut online casinos have grown steadily over time. Connecticut is one of the most prosperous states in terms of median income, but its iGaming industry has several structural flaws.
The most debilitating is the limited number of operators available to players, as Connecticut has issued only two online licenses to the two gaming tribes, the Mohegan and the Mashantucket Pequot. Because its total population is small, neither tribe has launched an internet poker product. The lack of internet poker costs Connecticut far more than the direct revenue it would bring in from the tables.
Delaware Buoyed by BetRivers
- Market Competitiveness – 3 licensed racinos operate under 1 platform contracted by state lottery
- Operator Burdens – 57% tax rate on gross revenues
- Market Maturity – Launched in October 2013
- Products Offered – Poker available; no game type restrictions
- Mobile Sports Betting – Has been available since 2023
The Delaware online casino market was transformed in 2024 after the launch of a new platform, with total annual iGaming revenue increasing by some 350% to $62.6 million, jumping from around $14 per resident to about $62 per resident in a single year after the BetRivers relaunch replaced 888.
However, Delaware still faces several critical factors, the first being its small population. All three Delaware racinos use the same lottery-contracted Rush Street Interactive online gaming platform, effectively creating a de facto monopoly in the market. Tax rates remain among the highest in legal iGaming states.
Rhode Island is the Newest Market
- Market Competitiveness – One brand under exclusive contract with state lottery
- Operator Burdens – 51% GGR tax rate
- Market Maturity – Launched in March 2024
- Products Offered – No online poker or RNG table games; new game types would require referendum
- Mobile Sports Betting – Has been available since 2019
Rhode Island online casino gaming is the most recent market to launch, and it remains the smallest, with a population of just over 1 million. Bally's is the only operator authorized to offer iGaming.
RI has one of the highest tax rates among legalized states and does not allow any promotional deductions.
Nevada Remains a Mystery
- Market Competitiveness – Only online poker permitted
- Operator Burdens – 6.75% tax rate
- Market Maturity – Launched in April 2013
- Products Offered – Poker only; no online casino gaming
- Mobile Sports Betting – Has been available since 2010
Nevada casinos cannot compete with their peers that offer real-money slots and table games. There has been plenty of chatter about expanding Nevada gambling options, but the state’s reliance on land-based revenue makes it reluctant to go down that path.
Upshot
Any state considering legalizing internet casinos should look to numbers 1 and 2 on this list as their model.
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