Ruddock Report: A Hint Of Optimism For 2025 Online Casino Legalization Shines Through
As 2024 winds down, three states emerge as not-so-crazy candidates to get moving on iCasino next year
4 min
Our monthly look at the online gambling landscape includes the current legal and regulatory status, prospective online casino and online poker states, and significant trends to watch.
Online casino legalization efforts were looking extremely grim just a month ago, but some recent developments hint at progress in 2025, as a few rays of sunlight are poking through the clouds.
The smart money is still on 2025 being a lean year, but the possibility of a mini wave of online casino legalization is no longer a pipe dream.
LEGAL ONLINE CASINO ONLINE POKER-ONLY
Three rays of hope
Several recent developments point to online casinos having more juice than previously believed.
Florida: As reported by Ryan Butler from the NCLGS Winter Meeting: “The Seminole Tribe of Florida is set to discuss a compact deal in 2025 that would allow online casino gaming, per GLI Executive Gabriel Benedik; the Tribe previously removed iGaming provisions from the compact that permitted mobile sports betting.”
Of note, Roger Gros, the former publisher of Global Gaming Business, wrote on LinkedIn:
“As per [Hard Rock Chairman] Jim Allen, the tribe already has the authority to use online HHR machines. He was just waiting for the right time, he told me.”
Maryland: Following a contentious legalization effort in 2024, 2025 was expected to be a recovery year for Maryland, building up to another referendum push in 2026. That said, Maryland is staring down a historic budget deficit, which could reopen the door to online casino talks sooner than expected.
Per Maryland Matters, “A debate over taxes, the economy and business climate, and education will all dovetail into efforts to solve billions in projected deficits over the next five years.” Del. Vanessa Atterbeary, the House Ways and Means Committee chair, recently said she is open to reintroducing online casino legislation in 2025.
A third state is also gaining momentum, and it’s this month’s spotlight state below: New York.
The candidate list
The following is taken from Straight to the Point Consulting’s The Forecast, which includes fast analysis for each state.
You can contact Steve here for more information about The Forecast.
Online Casino Candidate List | |
Likely: 50%+ | Possible: 25-49% | Possible, but unlikely: 10-24% | Unlikely: >10% | |
SEVEN CONTENDERS | |
Arkansas | – STTP FORECAST: Possible, but unlikely. |
Indiana | – STTP FORECAST: Possible, but unlikely. |
Iowa | – STTP FORECAST: Possible, but unlikely. |
Louisiana | – STTP FORECAST: Possible, but unlikely. |
New Hampshire | – STTP FORECAST: Possible. |
New York | NY is the industry’s “little engine that can’t,” as effort after effort has fizzled out despite the positive comments from optimistic supporters. The major roadblock is the state’s labor unions. Still, the ongoing licensing of downstate casinos will continue to suck oxygen out of the room and may keep further expansions of any kind sidelined. Gov. Kathy Hochul hasn’t shown any signs of supporting iCasinos. Still, Sen. Joseph Addabbo is adamant about pushing the issue in 2025, and another lukewarm online supporter, Assemblyman Gary Pretlow, has been tapped to chair the Ways and Means Committee. – STTP FORECAST: Possible. |
Wyoming | – STTP FORECAST: Possible. |
EIGHT HOPEFULS | |
Arizona | – STTP FORECAST: Dark horse status. |
Colorado | – STTP FORECAST: Unlikely. |
Illinois | – STTP FORECAST: Unlikely. |
Kentucky | – STTP FORECAST: Unlikely. |
Maine | – STTP FORECAST: Unlikely. |
Massachusetts | – STTP FORECAST: Unlikely. |
North Carolina | – STTP FORECAST: Dark horse status. |
Ohio | – STTP FORECAST: Unlikely. |
Candidate spotlight: New York
The Empire State is a perennial contender, but a decade of efforts to legalize online poker or casinos have been more talk than action.
Assemblyman Gary Pretlow has been the legislative bellwether in New York, often supporting legislation but never bringing it up for a vote as committee chair of the Assembly Racing and Wagering Committee. Pretlow is ranking up in the Assembly, as he has been tapped to chair the New York Assembly Ways and Means Committee.
That news has drawn a mixed reaction. When it comes to online casinos and online poker, Pretlow has been hot and cold over the years — and he always seems to be cold when it counts the most. Let’s see if that changes in 2025.
Labor unions continue to be the critical obstacle, with unions becoming increasingly hostile to online gambling expansion in New York and beyond.
In February, 700 employees at Resorts World casino at Aqueduct signed a letter opposing New York’s online gambling bill, saying in part:
“We find it appalling that you are pushing legislation that would hurt workers like us and our industry in order to benefit a handful of companies who are seeking massive profits at our expense.”
Added Bhav Tibrewal, political director of the union: “This iGaming proposal undercuts the best thing about casino gaming in New York: permanent, high-quality jobs that New Yorkers can live and retire on. We’ve stated and re-stated our opposition to iGaming to Senator [Joseph] Addabbo, and now it’s time for him and other legislators to start hearing it directly from casino workers.”
Further, the legislature will likely be reticent to seriously consider online casinos until the downstate (New York City) casino licenses are awarded. Developers interested in a downstate casino are a mix of supporters, opponents, and neutrals regarding online casinos. Even within the pro crowd, there is a lot of disagreement over the licensing structure (tethered, untethered, or a mix of both).
Previous spotlight states:
Trends to watch
Trend #1: Budget crisis
It’s a trite saying, but when it comes to online casino legalization, it’s the money, stupid. When states need money, they turn to online casinos, and more and more states, like Maryland, are suddenly feeling the budgetary pinch.
Offering a new revenue stream that also ticks off a lot of other boxes (consumer protections, bolstering and future-proofing existing land-based gaming operators, funding problem gambling treatment and research, etc.) will suddenly seem sensible, even if that revenue stream comes from online casino games.
Trend #2: VGT industry highlights tax rate
Online casino supporters were blindsided by union opposition in 2024, and there appears to be another roadblock to remove in 2025: the VGT/VLT industry.
During a hearing in front of the Louisiana Senate Judiciary Revenue and Fiscal Committee about online casino gambling last Thursday, Alton Ashy, representing the Louisiana Video Gaming Association (LVGA), called online gambling “video poker’s rubicon,” and the hill the industry is willing to die on. “There is nothing we are more opposed to,” Ashy said.
Ashy also criticized the preferred tax rate online casino supporters are pushing, noting that the VLT industry in Louisiana is taxed at 32%, while online casinos are asking for a rate about half that amount, and that the revenue generated by the operators is likely to leave the state.