From Coast to Coast, US Lawmakers Tackle a Full Slate of Bills
Nemanja M. • Last updated on 13 February 2025
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Just one month into 2025, and several US states have several bills being filed towards expanding the online casino and sports betting market. Here’s how the US legislative houses are responding to online gambling in 2025 in key states.
Indiana
Indiana was one of the first states to legalize sports betting after PASPA (Professional and Amateur Sports Protection Act) was discontinued in 2018. As at last year, Indiana recorded over $20 billion post-PASPA, ranking as the 8th state to beat that figure, with $1.75 from sports betting alone.
While sports betting is legal in Indiana state, internet casino gaming is not. Last year, former Sean Eberhart was found guilty of a federal charge of conspiracy to commit honest services fraud. According to the U.S. Attorney’s Office for the Southern District of Indiana, the former Rep used his position to vote in favor of “terms favorable” for Spectacle Gaming to relocate two casinos in the state in return for a position with the company for a $350,000 annual salary. Following the incident, a moratorium went up last year addressing bills to legalize online casinos that have failed to advance out of committee from 2021-23.
The latest bill in the Indiana Senate dropped last week. Filed by Rep. Ethan Manning, chair of the House Public Policy Committee, the bill seeks to allow riverboat casino owners and operators up to three online skins or unique brands. The rep proposes that revenue would be taxed at 26% for the first year, then 22% to 30% consequently. If passed, online betting providers would have to pay $500,000 initial license fee and an annual $50,000 license renewal fee to do business legally in the state.
Massachusetts
Massachusetts currently has two bills put up by Rep Daniel Cahill and Sen. Paul R. Feeny calling for a 20% tax on adjusted gross revenue aof online iGaming providers with an initial temporary license fee of $1 million. If passed, online betting operators would pay $5 million for a 5-year license, renewable at the same cost for the same duration. The two bills are nothing compared to that of Sen. John Keenan, looking to overhaul sports betting in Massachusetts, with plans to raise tax rates from 20% to 51%.
Virginia
Recent updates from Virginia’s Senate reveal Sen. Mamie Locke’s bill to legalize internet casinos in the state. While hearing on the bill has been postponed to a later date, Locke cited that a 15% tax on adjusted gross operator revenue, with the rate and specific allocations matching the current tax methods on sports wagering in the state, should be approved. The Virginia senator proposed licensing only operators with active presence in at least three other states.
New York
While New York is currently the biggest sports betting market in the US, the same cannot be said for online casino gaming. Sen. Joseph Addabbo is making a third attempt to see iGaming legalized in the state. In Addabbo’s bills, propositions to fix the tax rate to 30.5% on gross gaming revenue appear to be on the higher side compared to New Jersey’s 15% tax rate. Last year alone, mobile sportsbooks in New York paid over a billion dollars in taxes at the current tax rate of 51%, revealing a huge revenue opportunity in an additional gambling market.
Sources:
- iGaming Business. (2025, January 23). From Indiana to New York, US legislative season already packed with bills. https://igamingbusiness.com/sports-betting/gambling-legislation-filed-across-us/
- SBC Americas. (2025, January 22). Addabbo keen to legalize online casinos, limit sweeps in NY. https://sbcamericas.com/2025/01/22/ny-online-casino-lottery-bill-2025/