Northeast Dominance Grows as Maine Set to Become 8th Legal iGaming State
Midway through 2026, there are only eight jurisdictions in the United States with legalized iGaming, and Maine set to launch in mid-July. With a clear trend toward states in the East, particularly in the Northeast, it has become a complete stronghold of dominance in the region.
As more states fall into the red on their budgets, taxing sports betting and iGaming has become a sensible way for them to come closer to even. Now, it’s just a matter of which states are next to get in on the mix. Word on the street is that Massachusetts is knocking on the door, while Illinois, New York, Ohio, and Virginia are lurking around the corner.
Northeast Leads the Way in iGaming
In 2025, iGaming gross gaming revenue (GGR) totaled $10.73 billion nationwide. It is striking to see such a lopsided number of Northeastern states with iGaming legalization all in one spot, but it actually helps others down the road.
In this section of the country, there is a blueprint of highly effective states with a proven track record year after year. Eventually, the hope is that when more states are ready to come to the table, they can leverage industry catalysts and get off to a smooth start.
New Jersey Leads the Way
Surprisingly, it was Delaware that got the iGaming party started all the way back in 2013, allowing online casino games through the state’s lottery and racinos. Two weeks later, neighboring New Jersey entered the arena, and it was off to the races.
Delaware and New Jersey have paved the way on the East Coast, with the latter quickly becoming one of the largest markets in the United States since legalization. New Jersey had its most successful year of iGaming revenue, with $2.91 billion, and it has shown 22% year-over-year growth since 2021.
New Jersey has been incredibly vital to iGaming’s success in the United States. Along with a couple of other states, these three states account for almost 90% of the revenue generated by this platform, while the others chip in, providing their citizens with ways to get in on the action.
Tax Rates, Gross Gaming Revenue for Eastern States
Last year, New Jersey increased its iGaming tax from 15% on GGR to 19.75%. This was part of a broader scope of changes, which included raising the GGR tax on online sports betting from 13% to 19.75% and the daily fantasy sports (DFS) tax from 10.5% to 19.75%. When it was all said and done, Jersey generated $2.91 billion in GRR for 2025.
Connecticut, powered by major operators, casinos, and tribal groups, has a tax rate similar to New Jersey's, at 18%. In 2025, Connecticut generated $707.5 million in GRR.
As for the other Eastern states, Delaware did get the whole thing started, but they run a much smaller operation than any other state. They generated just under $85.5 million from a 50% lottery controlled distribution tax on operators.
Another small state, Rhode Island, is the least desirable spot for operators, with a 61% tax on slots (15.5% on table games) and a 51% lottery revenue-share tax. They did, however, generate $58 million, which is pretty nice for a state of their size.
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ME Launches in July: MA, NY, or VA Next?
The great state of Maine will become the eighth state in the United States to have legal iGaming. Sources state that mid-July 2026 will be the official launch date, with rumors that the 15th or 16th may be the date. Some sources have claimed that Maine won’t be “fully functioning” until the beginning of 2027, as the Maine Gambling Control Unit dots the Is and crosses the Ts on legislation.
Already boasting a beautiful tourist location for summer travelers, the addition of the online casino platform will surely be a hit with locals and tourists alike.
The iGaming legislation was granted to the state’s four federally recognized Wabanaki Nations: Mi’kmaq, Maliseet, Penobscot, and Passamaquoddy. Each tribe can partner with any state-approved major casino operator.
Maine will have an initial 18% tax rate, which is in line with the rates Connecticut and New Jersey operate under.
Massachusetts
Oddly enough, Massachusetts has missed out on all the iGaming fun going on in New England. Bordering states like Connecticut and Rhode Island already have legal iGaming, and that would certainly be a big hit to those markets.
In March 2026, further talks to bring iGaming to Massachusetts stalled, and House Bill 4431 (HB 4431) was sent to a study order. Essentially, there is no realistic expectation that iGaming will happen in Massachusetts until 2027.
New York
New York has massive potential to become the largest iGaming market in the country, with estimates exceeding $3.4 billion. Don’t mean to burst anyone’s bubble, but it looks like this won’t happen until 2027.
There hasn’t been much movement on Senate Bill 2614 (SB 2614), as talks have progressed slowly. However, as I have seen in my neighboring state, casinos are gearing up and getting ready to go. One of the hopeful projects would be a casino right in the heart of Times Square in Manhattan, which would be one of the coolest experiences any of us humans might ever have.
Illinois
Illinois has been driving sportsbook operators up the wall in recent months, so I wouldn’t expect anything magical to happen just yet. House Bill 4797 (HB 4797) has been proposed, but it has drawn pushback from video gaming terminal operators and retail casinos in the state.
Hey, if Illinois loses the Chicago Bears, I feel like legalizing iGaming would be a decent start to healing. Maybe. Probably not.
Virginia
Virginia has advanced House Bill 161 (HB 161) and its Senate versions this year, but there’s a holdup in the chambers that will probably keep this on ice until 2027.
In the meantime, Virginia will do its best to keep pushing along. Overall, they have a solid plan in place, with a 20% tax rate and proposals tied to major industry operators.
What’s Next for United States iGaming Expansion?
Despite the progress in iGaming over the last few years, it is clear there’s still a tough uphill climb for most states. Numerous external factors go into these decisions, and sometimes they're beyond the control of some of the most important people. As we have seen before, tribal groups, local economics, and even politics can all influence a particular decision.
The presence of responsible gambling is something all states want to see up front, and getting around these hurdles can prove to be the toughest.
Positive Thinking
On a brighter note, we are seeing many of these U.S. states thrive by bringing in tax revenue. The iGaming platform has shown that, under tight regulations, it can be enjoyed responsibly. Not only will it be enjoyable for customers, but it will also be rewarding for the states.
When a state brings in an operation like this, more jobs come along with it. Granted, this will be on a mobile platform, but there are behind-the-scenes people (like myself in the past) who still have to keep the operation running at peak performance.
2027 and Beyond for iGaming in the U.S.
If we’re being honest, it looks like 2027 will be the year that more states break through the threshold to legal iGaming. In fact, I wouldn’t be surprised to see it grow to double-digits in the new year.
The Northeast does have many more business advantages than the rest of the country. For one, the populations have greater volume (in condensed spaces), making the juice well worth the squeeze; this also allows trial runs with a larger group of people. Not to mention, I believe this is how we got the Northeast domination in the first place.
When looking at the rise of iGaming in the Northeast, it became a competition to have it. Once Delaware had iGaming, New Jersey wanted it, and then came the boom.
It won’t be long before the rest of the country has that FOMO moment.
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