The regulation of online casinos is a patchwork of state-level decisions, with each state having its own set of rules and regulations governing the industry, leading to a varied landscape in which states determine which games are permissible, impose geolocation restrictions, and establish licensing requirements.
New Jersey paved the way for legalized online casinos in 2013 when Governor Chris Christie signed legislation authorizing their operation. Since then, several other states, including Connecticut, Delaware, Michigan, Pennsylvania, West Virginia, and Rhode Island, have followed suit.
Rhode Island, the most recent state to legalize online casinos, passed legislation in 2023 that took effect on Wednesday, March 1. Residents of the state can now enjoy simulcast table and slot games.
Despite the success of these seven states in legalizing online casinos, the anticipated widespread legalization across the U.S. has not materialized. Only Connecticut and Rhode Island have enacted associated laws since 2021.
Efforts to expand online casinos have faced challenges in some states. For instance, attempts in New Hampshire in 2023 failed to gain traction, and a similar initiative in Maryland was more like a “starting a conversation, rather than a realistic legislative proposal.”
Uncertainty surrounds the reasons behind the limited adoption of regulated online casinos in many states. Concerns about online gambling’s potential impact on land-based casinos have influenced decisions, particularly in Maryland, where research suggested a negative effect on traditional venues.
Additionally, the focus on legalizing sports betting following the Supreme Court’s 2018 decision has diverted attention from online casinos. Currently, 38 states have legalized sports betting, with 29 permitting online platforms.
In Nevada, online casinos are influenced by internal dynamics and broader national trends. While Nevada is renowned for its gambling industry, the state remains relatively cautious in embracing online gambling compared to other jurisdictions.
Although Nevada legalized online poker in 2013, it has not expanded to include other forms of online casino gaming to the same extent as states like New Jersey. The reasons behind this are the state’s traditional reliance on its brick-and-mortar casinos, creating resistance to protect the interests of established casino operators.
Secondly, Nevada’s status as a tourist destination has influenced its approach to online gambling. The state’s focus on attracting visitors to its physical casinos has led policymakers to prioritize the in-person gambling experience over expanding into the online space.
Furthermore, Nevada’s regulatory framework for online gambling is stringent, with strict licensing requirements and consumer protection measures. While these regulations ensure the industry’s integrity, they also create barriers to entry for online casino operators looking to enter the Nevada market.
Despite these factors, Nevada has not ruled out the possibility of expanding its online gambling offerings in the future. Proponents of industry growth anticipate that the end of federal stimulus funding may prompt states to seek alternative revenue sources, potentially making them more open to legalizing online casinos to generate tax revenue.
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