The American Gaming Association recently reported that legal iGaming generated over $65.83 billion in revenue in 2024. Governments with legal gambling were able to collect around $14.5 billion in taxes.
These figures show that regulating iGaming can be lucrative, yet there are still states without casinos and sportsbooks.
The U.S. Constitution grants each state the autonomy to regulate gambling activities within its borders. However, legalizing casinos and sports betting are two separate matters.
Although both are forms of gambling, their stakeholder interests, legal systems, historical backgrounds, and economic effects are very different. Casinos generally involve physical establishments that contribute to local economies through tourism and job creation.
On the other hand, sports betting, especially online, is less tied to physical locations and has different regulatory requirements to ensure the integrity of sports. This was the focus of the Professional and Amateur Sports Protection Act (PASPA) of 1992, which was struck down by the Supreme Court in 2018.
Since then, 38 states have already legalized sports betting, while only 7 states have both casinos and sportsbooks.
States That Remain Opposed to Casinos
The majority of states in the U.S. now have casinos (in-person and/or online), with only two remaining opposed to them.
Utah
Casinos and all other types of gambling are strictly prohibited in Utah. This stems from the state’s strong emphasis on family values and Mormon tradition.
Gambling has always been viewed as a vice that can lead to social problems and erode moral character. There have been virtually no serious efforts to legalize any form of gambling in Utah, and its position on this issue appears unlikely to change in the near future.
Hawaii
Hawaii has always been concerned with safeguarding the state’s natural beauty and protecting its citizens from the potential negative effects of gambling. It is likely to remain gambling-free for the foreseeable future due to the lack of political or public support for change.
States Still Opposed to Sports Betting/Working on Legalization
Even after PASPA was struck down, there are still a few states that are either working on legalizing sports betting or are completely against it.
Alabama
While Alabama has a state lottery and allows pari-mutuel betting on dog racing, other forms of gambling, including sports betting, are prohibited. This is mainly due to a combination of conservative social values and opposition from religious groups.
There have been serious attempts to make gambling, especially sports betting, legal in the state. In 2021, Senator Del Marsh introduced a bill to legalize sports betting. This bill passed the Senate but not the House.
The latest attempt was just last year. Albritton and House Speaker Nathaniel Ledbetter worked on a comprehensive gaming package that included sports betting. The package passed the House but was stripped of sports betting provisions before passing the Senate. However, the remaining bill, which included a state lottery but not sports betting, still failed.
Alaska
The only forms of gambling permitted in Alaska are pull-tab games, charitable gambling, and the state lottery. In 2022, Adam Wool introduced a bill (HB 385) to authorize and regulate online sports betting. The bill passed the House Labor and Commerce Committee but did not progress further.
California
The situation in California is complicated. While the state has tribal casinos, state lotteries and sports betting remain illegal. The tribal casinos are the primary roadblocks, as they seek to protect their exclusive rights to gambling and maintain control over the market.
Georgia
There have been attempts to push for legal betting in Georgia since 2021, with the latest effort occurring last year. Multiple bills were introduced, but none passed due to disagreements over how to allocate tax revenue and whether a constitutional amendment was required.
Idaho
Idaho maintains a restrictive stance on gambling, allowing only a state lottery and limited charitable gambling. Since PASPA was overturned, there has been no significant push to legalize sports betting or any other form of gambling.
Minnesota
Despite recent efforts, sports betting also remains illegal in Minnesota. The bills proposed in the last two years, which included a compromise between tribes, racetracks, and charities, failed to pass due to time constraints and political disagreements.
Oklahoma
Oklahoma is facing similar challenges to California when it comes to legalizing more gambling activities. The state has tribal casinos, and structuring legislation with them has been difficult.
Multiple bills have been introduced since 2023, but navigating the disagreements between the state and tribes has proven to be a challenge.
South Carolina
Only charitable gaming, casino cruises, and state lotteries are permitted in South Carolina. Sports betting is not yet legal, but proposals to push for it have been introduced since 2022. HB 3625 is the most recent bill, and it has received bipartisan support so far.
Texas
Bills to legalize sports betting have been introduced in Texas since 2023, but, like California and Oklahoma, disagreements between the state and tribal leaders remain the main hurdles. The state’s governor, Lieutenant Dan Patrick, has also made it clear that he is firmly against legalizing sports betting.
Interestingly, even in states where gambling remains illegal, cheating scandals still occasionally grab attention. For instance, there have been some infamous casino cheating cases across the U.S., which only complicate the conversation around the legalization of gambling.
So, What’s the Future of Gambling Legalization?
It’s likely that only the states of Utah and Hawaii will remain strongly opposed to gambling activities. That said, we can expect more states like Texas, California, and Minnesota to continue pushing for legal gambling, especially sports betting.
When it comes to casinos, several states are actively pushing for their legalization, including New Hampshire, Illinois, Maryland, Ohio, Maine, and New York. Considering these efforts, we may see more states regulating both online casinos and sports betting in the coming years.
