The U.S. regulated online casino market is smaller than sports betting in terms of states (eight, soon to be nine, versus 35+), but it's larger where it counts: margins. iCasino operators keep roughly 25-30 cents of every dollar wagered, compared to the 10 cents or so that sportsbooks retain. That math, combined with the lack of seasonal volatility, makes iGaming the more attractive business for operators and a significant tax revenue engine for the states that have authorized it.
This page tracks operator market share, state-level gross gaming revenue, and tax generation across the regulated U.S. online casino market. The charts and statistics below are presented by Casino Reports in collaboration with independent analyst Alfonso Straffon, a longtime industry observer, former sports trader, and equities analyst at Deutsche Bank. We update here on or about the third Thursday each month.
For a deep dive into the sports betting side, visit our companion page: U.S. Sports Betting Market Stats Database.
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1. iCasino gross gaming revenue by state, LTM (July 2025 through June 2026)
Key Insights:
- Records continue to fall across multiple jurisdictions. Pennsylvania leads the U.S. iCasino market with $3.72 billion in gross gaming revenue over the last 12 months, up from $3.6 billion in the previous LTM frame and $3.42 billion the frame before that. The trajectory has been consistent and upward.
- Michigan has climbed to $3.47 billion, closing the gap with Pennsylvania. New Jersey follows at $3.15 billion, comfortably above the $3 billion threshold for the third consecutive LTM cycle.
- Connecticut leads the second tier at $767.7 million, followed by West Virginia at $435.5 million, Delaware at $168.8 million, and Rhode Island at $67.9 million.
Pennsylvania, Michigan, and New Jersey have cemented themselves as the "revenue triad" in U.S. iGaming, each generating over $3 billion in annual GGR. Major operators and suppliers, including Playtech and Evolution Gaming, have established live dealer studios in all three states.
What's coming.
- Maine became the eighth state to legalize iGaming in January 2026 when Gov. Janet Mills allowed LD 1164 to pass into law without her signature. The law grants exclusive online casino rights to Maine's four federally recognized Wabanaki tribes, each of which can partner with one third-party operator. DraftKings and Caesars already have tribal sports betting partnerships in the state, giving them an inside edge. The 18% tax rate is competitive. A launch is expected in late 2026 or early 2027, though a lawsuit from Oxford Casino Hotel (which was excluded from the bill) could delay things.
- The bigger question is New York. Sen. Joseph Addabbo Jr. introduced iGaming legislation for the fourth consecutive year in January 2026 (SB 2164), with an Assembly counterpart (A6027) from Assemblywoman Carrie Woerner. The proposed 30.5% tax on GGR is well below the 51% sports betting rate but among the highest contemplated nationally for iCasino.
Two obstacles that had previously blocked progress have been cleared: the downstate casino licensing process wrapped in December 2025 (licenses awarded to Bally's Bronx, Resorts World NYC, and Metropolitan Park), and the state enacted a sweepstakes casino ban. The Hotel and Trades Council remains opposed over job cannibalization concerns, but Addabbo is characterizing 2026 as the clearest path yet. If enacted, New York would instantly become the largest iGaming market in the country by a wide margin, and launch would likely come no earlier than 2027.
In Delaware, the state lottery replaced 888 with Rush Street Interactive at the end of 2023. In September 2024, Rush Street launched live dealer games through Evolution Gaming, available through all three of the state's licensed casinos.
2. iCasino GGR market share by operator (March 2022 to present)
Key Insights:
- FanDuel Casino set a new record share at 29.4% in November 2025 and has since settled to 27.0% as of the latest data. In February 2025, FanDuel went live with the exclusive Huff N' More Puff, a digital version of the wildly popular on-floor slot, which helped accelerate its share growth. FanDuel has also pushed World of Wonka and other exclusive titles throughout the year.
- DraftKings Casino has ticked up to 21.9%, maintaining steady growth. DraftKings has been innovating with a form of peer-to-peer poker available in certain states through its casino app, while also expanding its content library and Golden Nugget Online Gaming and Jackpocket Casino brands.
- BetMGM's decline across the past four years is the most notable story in this chart. It surged to 28% share during the post-launch phase in Michigan (January 2021) and has since fallen roughly 10 points to 18.1%. That lost share has gone almost entirely to FanDuel and DraftKings. The slide has slowed, though, and BetMGM appears to be stabilizing in the low-to-mid 18s.
- Rush Street Interactive (BetRivers/PlaySugarHouse) continues to punch above its weight at 8.6% share, unchanged from our prior update. Frequently rumored as an acquisition target, RSI has held at roughly 8-9% for years.
- Caesars at 6.1% and Fanatics Casino at 5.3% round out the mid-tier. Fanatics dipped from 5.8% earlier, suggesting the rapid growth phase has paused. Hard Rock holds steady at 4.0%, and the Seminoles are also veering into products resembling iGaming in Florida where they hold a state monopoly.
Note on methodology. Revenues from multiple brands under the same parent company are combined. Flutter includes FanDuel and PokerStars; DraftKings includes Golden Nugget Online Gaming and Jackpocket Casino; BetMGM includes Borgata.
3. iCasino tax revenue by state, LTM (July 2025 through June 2026)
Key Insights:
- Pennsylvania leads with $1.35 billion in iCasino tax revenue over the LTM, driven primarily by its 54% tax rate on online slot machine games. That single rate on slots carries most of the weight; table games and poker are taxed at a far more reasonable 16%.
- Michigan follows at $935.9 million, benefiting from a graduated tax rate that reaches 28% for the largest operators. Michigan regulators have also been aggressive in pursuing enforcement against unregulated and black market operators, intended to protect both citizens and the state's licensed operators.
- New Jersey generated $700.3 million, reflecting the increase from a 17.5% effective rate to 19.75% under Gov. Phil Murphy's FY 2026 budget (effective July 1, 2025). The rate hike is now working its way through a full LTM cycle, and the jump from $655.5 million in our prior frame to $700.3 million confirms its impact. NJ's iCasino tax haul is approaching the point where it will rival Michigan despite generating less GGR, purely on the strength of the higher rate.
- Connecticut leads smaller states at $117.6 million, followed by West Virginia ($65.3 million), Delaware ($56.0 million), and Rhode Island ($34.0 million).
This chart, taken together with the GGR figures above, reveals that Michigan and New Jersey remain the most profitable states for operators owing to their more modest tax rates, though New Jersey's advantage has narrowed with the rate increase. Pennsylvania's operators gross the most revenue overall, but the 54% slot tax significantly compresses their margins on that product.
4. Sports betting and iCasino taxes combined, LTM (July 2025 through June 2026)
Key Insights:
- With just seven states having legalized regulated online casinos (Maine's law is signed but not yet live), those states account for 40% of all gross gaming revenue when combining sports betting and iGaming figures, and 43% of tax dollars collected. The combined market generated approximately $29.2 billion in GGR and $7.6 billion in taxes over the trailing 12 months.
- Pennsylvania remains the combined tax leader at $1.59 billion, owing to its high iCasino slot rate stacked on top of a 36% sports betting rate. But the story of this update is what's happened behind Pennsylvania.
- New Jersey has surged to $1.32 billion in combined gaming tax revenue, effectively tying New York ($1.31 billion) for the second spot. Read that again: New Jersey, with both iCasino and sports betting, is now generating as much tax revenue as New York generates from sports betting alone. New Jersey's rate hike from 13% to 19.75% on sports betting (and from 17.5% to 19.75% on iGaming), combined with a mature iCasino market generating $700 million in its own right, has catapulted the state up the rankings. Two updates ago, NJ sat well behind NY. That gap has closed entirely.
- Michigan follows at $976.8 million, driven by its large iCasino market. Illinois at $617.6 million is purely sports betting, with no authorized iCasino.
- The juxtaposition of the two revenue streams underscores a basic market reality: margins are higher and more stable for online casinos than for sports betting, even in the era of rising structured hold and heavy parlay activity. The blended tax rate for iCasino runs approximately 28% versus roughly 25% for sports betting, reflecting both higher state rates and the fatter margins that can absorb them. Sports betting has more states, more handle, and more public attention, but iCasino is the better business.
- If New York legalizes iGaming at the proposed 30.5% rate, this chart will need a much longer x-axis.
On the New York operator list. New York levies a 51% tax on gross sports betting revenue on its nine active operators: DraftKings, FanDuel, Caesars, BetMGM, Fanatics, theScore Bet (formerly ESPN Bet), Resorts World Bet, Bally Bet, and BetRivers. Monthly betting volume hovers around $2.3 billion, translating to the tax haul you see on this chart.
Related. For the full sports betting breakdown, including operator handle and GGR market share, state-level rankings, parlay data, and quarterly hold trends, visit our U.S. Sports Betting Market Stats Database.
Selected data sources
- Michigan Gaming Control Board
- New Jersey Division of Gaming Enforcement
- Pennsylvania Gaming Control Board
Source: State filings. Charts and estimates by @astraffon. Monthly shares subject to revision as states report.
