US Online Casino Legalization Update: What States Are Considering Expansion

Each year, multiple states consider expanding gambling.

While that has led to online sports betting to consistently grow throughout the United States, online casino expansion hasn’t seen the same growth.

Just seven states operate legal iGaming in the US, but multiple states have made progress toward online casino expansion in 2026, including one state that has passed legislation.

Maine Legalizes iGaming

Early in 2026, Maine became the eighth state to legalize online casinos in the US.

The Maine House and Senate had approved LD 1164 last summer and Gov. Janet Mills had delayed a decision on whether to approve the bill. In January, Mills elected to let the bill pass without taking action.

Under this bill, the four tribes of the Wabanaki Nations will be allowed to provide licenses to Maine online casino operators. These online casinos will be taxed at 16% of their revenue.

The state’s two brick-and-mortar casinos will not be included in the iGaming expansion under this bill, which prompted the Oxford Casino Hotel to file a lawsuit, accusing the state of discrimination.

This lawsuit could potentially delay the Maine iGaming rollout. No clear timeline has been established for an official launch date.

Virginia Considering Online Casino Expansion

The potential for Virginia online casinos is as close as it has ever been.

House Bill 161 was passed by the Virginia House of Delegates, while Senate Bill 118 was passed by the Virginia Senate. Both would see the legalization of iGaming in the state.

Now, both chambers need to come to an agreement on a single bill in order for it to be sent to Gov. Abigail Spanberger.

Both bills have been tailored to look similar at this point. Each land-based casino in Virginia would be able to issue up to three online casino licenses.

The state would institute a 20% tax on each iGaming operator’s adjusted gross revenue.

While Virginia is making progress toward iGaming legalization, both bills call for full passage by both chambers in 2026 and 2027 in order to be advanced to the governor.

That means any launch of online casinos in Virginia wouldn’t happen until at least 2028.

Illinois Reintroduces iGaming Bills

Legislation was introduced once again that would see Illinois online casinos be legalized.

House Bill 4797 and Senate Bill 3723 were both introduced in early February, mimicking bills introduced in 2025 that didn’t see much traction.

Both bills call for a 25% tax rate on an online casino’s adjusted gross revenue.

To be more retail-friendly, the bills prohibit the Illinois Gaming Control Board from issuing a license to any casino that has reduced the size of its workforce by 25% or more since February 2020.

HB 4797 is with the House Rules Committee while SB 3723 is with the Assignments Committee.

Addabbo Again Pursuing NY Online Casino Expansion

New York has had a busy few months when it comes to gambling.

In December, three downstate casino licenses were issued for the state, while a dual-currency sweepstakes ban was also issued.

Following that, Sen. Joseph Addabbo Jr. introduced Senate Bill 2614 to legalize New York online casinos. Assembly Bill 6027 was also introduced with the same intentions.

The bills call for a 30.5% tax rate on operator’s gross gaming revenue.

Addabbo has long been a proponent of gambling expansion in New York. This is the fourth consecutive year he has introduced an iGaming bill in the state.

Currently each bill is with their respective Committee on Racing, Gaming and Wagering.

Maryland Sets Hearing on iGaming

Another state could be looking to expand online gambling.

Maryland Senate Bill 885 would see the State Lottery and Gaming Control Commission to issue licenses to qualified applicants to conduct internet gaming and online bingo.

Tax rates would be 40% on slots and table game revenue, and 20% on live dealer revenue.

The bill is currently with the Senate Budget and Taxation Committee where a hearing on the matter is scheduled for March 11 at 1 p.m.

Still in its early stages, it provides a small glimmer of hope for Maryland online casinos to be legalized.