US States Stall Online Casino Push: Massachusetts and Ohio Hesitate

The momentum for online gambling expansion in the United States appears to have hit a significant roadblock. While online sports betting spread rapidly across the nation following the repeal of PASPA, the legalization of online casinos is seeing a much more cautious approach. In key states such as Massachusetts, Ohio, and Virginia, lawmakers have signaled a deliberate slowdown in the iGaming legislative process. The reasons for this hesitation are multifaceted, ranging from protecting brick-and-mortar casino investments to addressing complex consumer protection issues.

A palpable skepticism exists within statehouses. Key political figures, including Ohio Representative Brian Stewart, Virginia Senator Jeremy McPike, and Massachusetts Representative David Muradian, clarified during a recent industry panel that the hurdles for online casinos are substantially higher than those for sports betting. Supporters frequently cite New Jersey as proof that digital and physical gaming can coexist profitably, but this argument is not universally accepted. Many decision-makers fear that local casino resorts could lose significant revenue if players can access slots and blackjack from their homes.

Numbers and facts

As of September 2026, only eight US states have fully legalized real-money online casinos. These include Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, Maine, and West Virginia. In these established markets, the fiscal benefits are evident. In states like Pennsylvania, New Jersey, Michigan, and West Virginia, tax revenue from iGaming is directly allocated to education programs, property tax relief, health services, and senior programs. Despite these gains, expansion elsewhere remains a difficult sell.

"Online casino expansion is still a hard sell in many statehouses. Concerns about retail casino revenue and consumer protections continue to slow momentum." - Brian Stewart, Representative for Ohio

The disparities between states are vast. For instance, while Arizona legalized sports betting in 2021, there is currently no notable interest from Native American tribes or the legislature to introduce online casinos. In states like Alabama or Alaska, neither commercial casinos nor legal sports betting exist, making the introduction of iGaming a distant prospect.

Background

The resistance in Massachusetts and Ohio is particularly notable given that both states are generally viewed as progressive regarding gambling. However, the political reality is different. Lawmakers emphasize that each state possesses a unique market that cannot be simply compared to the New Jersey model. Protecting jobs at large resort casinos is a central focus of the debate. There is a strong desire to ensure that billions of dollars invested in physical infrastructure are not undermined by digital competition.

Furthermore, responsible gaming plays a pivotal role. US regulators are closely monitoring how the immediate availability of casino games on smartphones impacts addiction risks. While sports betting is often viewed as a social activity tied to events, pure casino gaming is perceived as higher risk. Consequently, lawmakers are demanding stricter regulatory frameworks before granting licenses to major operators like DraftKings, FanDuel, or BetMGM.

Why it matters for German players

For German players, the situation in the US serves as an interesting mirror to domestic regulation. While US states are still debating basic legality, Germany established a clear framework with the 2021 State Treaty on Gambling (GlüStV 2021). However, German players must adhere to much stricter rules than their American counterparts in legal states. In Germany, a strict 1-euro stake limit per spin on virtual slots and a monthly cross-provider deposit limit of 1,000 euros apply, monitored by the LUGAS system.

In the US, such rigid limits are rare. Operators there rely more on voluntary self-exclusion tools. German players using a casino licensed by the Gemeinsame Glücksspielbehörde der Länder (GGL) enjoy a level of legal certainty that is currently missing in many US states due to political gridlock. Players in Germany should always check the GGL whitelist to ensure their provider is legal and that consumer protection is guaranteed.

What it means for GGL-licensed casinos

For providers with a German GGL license, the slow progress in the US means that the focus will likely remain on the European market for now. While major US corporations like DraftKings or MGM had planned heavy domestic investments, regulatory delays might force them to rethink their global expansion strategies. German licensed casinos can capitalize on their market stability. Since the German market is already fully regulated, it offers a level of clarity that citizens in Ohio or Virginia currently lack.

GGL casinos must continue to strictly follow advertising guidelines and maintain the separation of gaming types. While cross-selling between sports betting and casino is often pushed in the US, it is heavily restricted in Germany. The hesitation of US politicians indirectly validates the German approach: prioritizing safety and control over rapid market growth.