By FOCUS, A Leonine Business
In 2018, the Supreme Court ruled that the federal ban on sports betting was unconstitutional, opening the flood gates for states to legalize both retail and online sports betting. Since then, more than half of U.S. states have legalized online sports betting, and a growing number are exploring expanding online gambling to casino gaming. These developments are reshaping state economies and legislative priorities, especially as the industry continues its explosive growth.
According to the American Gaming Association, gross gaming revenue from sports betting increased nearly tenfold between the third quarters of 2020 and 2024, jumping from $352 million to $3.24 billion. With this explosion in revenue, lawmakers across the country are taking a closer look at the regulatory and fiscal opportunities online gambling can offer.
Today, 30 states and the District of Columbia allow for online sports betting. Seven states, Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island and West Virginia, also permit online casino gaming. Legislative efforts are currently underway in other states like Illinois, Indiana, Massachusetts, New Hampshire, New York and Wyoming to authorize some form of online gambling. Georgia HB 686, known as the Georgia Sports Betting Act, proposes to legalize online sports betting under the oversight of the state lottery. The bill includes a 24 percent privilege tax, responsible gambling protections and strict measures to prevent underage gambling and misleading advertising.
Several states, including Illinois, Maryland and Virginia, are actively considering legislation to legalize online casinos. In Maryland, HB 17 would authorize the State Lottery and Gaming Control Commission to license and regulate internet gaming operators. The bill was introduced on January 8 and heard in the House Ways and Means Committee on February 10.
In November 2024, the National Council of Legislators for Gaming States unveiled its Internet Gaming Model Act as a blueprint for states considering online gambling. The model framework would create licensing standards, anti-fraud measures and taxation structures to ensure regulatory integrity. The model act emphasizes consumer protection and includes capping deposits made by an individual to $20,000 per day, a ban on advertisement on college campuses and the creation of a statewide Player Health Program.
As more states weigh the benefits and risks of legalized online gambling, the trend suggests continued momentum, especially given the potential for substantial tax revenue and job creation. FOCUS will continue to monitor tax policies on data centers in state legislatures across the country.
by Will Beacom 3/31/25
