Rapid technological innovation combined with evolving social mores has necessitated a flurry of new legislation and regulation at both the state and federal levels. As we enter 2025, let’s review some of the key legislative updates that are shaping gambling norms and practices across the country.
Rise of Online Gambling
In 2023, the federal government passed the Online Gambling Regulation and Taxation Act, which provides framework for states to authorize and regulate various forms of online gambling. So far, 32 states have passed their own legislation allowing and taxing online casinos, poker, and/or sports betting. These new online gambling laws require strict licensing protocols, include responsible gambling features, and implement age and location verification procedures. Operators must also submit to third-party testing to ensure fair games and pay out rates. The results have been overwhelmingly positive:
- $4.8 billion in tax revenue was generated by online gambling in 2024
- Hundreds of new jobs have been created to support these new online industries
- Problem gambling rates remain unchanged or have fallen in states with online gambling
While a few states still prohibit online gambling, the trend is toward regulated expansion. With more states debating legislation this year, it’s likely that regulated online gambling at Casino Lukki will be available in some form across the entire country by the end of the decade.
Daily Fantasy Sports
Another area that has demanded legislative attention in recent years is daily fantasy sports (DFS). These fast-paced contests that allow players to build teams tied to real world sports performance existed in a gray area for years. However new laws are embracing DFS as a game of skill rather than chance.
In 2022 and 2023, 10 more states passed legislation specifically classifying DFS as legal games of skill. They now join 15 other states plus Washington D.C. in explicitly permitting DFS games and contests. With clear legal status, popular DFS operators such as DraftKings and FanDuel are free to offer contests to millions of sports fans across a majority of the U.S.
This classification also enables states to implement consumer protection statutes tailored to DFS. These include age and identity verification requirements, restrictions on contest participation by athletes and others who may have insider information, as well as responsible gaming policies.
While a few holdouts still prohibit paid DFS contests, participation rates continue to climb across most of America. Over 17 million people are expected to take part in DFS contests by the end of 2025. The embrace of DFS is ushering fans closer to the action while generating substantial tax revenues for states.
Cautious Expansion of Sports Betting
While online and fantasy sports gambling gained rapid widespread adoption over the past five years, the expansion of traditional sports betting has moved more slowly. Since the Supreme Court paved the way for states to authorize sports betting in 2018, many have tread carefully in an effort to balance competing interests.
As of late 2024, 21 states offer legal regulated sports betting, mostly through retail sportsbooks with a smaller number allowing online wagering. Seven more states passed sports betting bills this year, including the large markets of Texas, Florida and Illinois. With over half the country now allowing regulated sports betting, unlawful offshore operators have been severely marginalized.
While sports betting expansion has been broadly embraced, some guardrails remain in place. All states prohibit betting on amateur and youth events to maintain integrity. Some states, like Utah and Hawaii, are unlikely to ever allow gambling on sports. For the rest, tax revenues of over $750 million in 2024 prove that regulated sports betting can deliver substantial economic benefits if properly overseen.
Great Gambling Compromise of 2024
While momentum has shifted toward expanding access to gambling over the past five years, opposition remains in some quarters. Everything came to a head during the Great Gambling Compromise of 2023.
In an effort to balance rapidly evolving gambling norms with public health concerns, Congress spearheaded a broad compromise bill that gathered input from all stakeholders. The result was a landmark piece of legislation centered on four pillars:
1. Preserving State’s Rights
The 2023 Compromise formally granted states the power to determine their own gambling policies. While providing federal frameworks for online gambling and DFS regulation, how and whether to authorize gambling remains in state’s hands.
2. Responsible Gambling Provisions
All legal gambling operators are now required to implement responsible gambling features for patron protection. This includes providing self-exclusion options, time and money limits, cooling off periods and linking to problem gambling resources.
Advertising guidelines were also updated to avoid glamorizing excessive gambling behaviors.
3. Public Health Funding
A small portion of gambling tax revenues are now earmarked to fund problem gambling research, education campaigns and treatment options. This ensures that public health concerns are proactively addressed amid market growth.
4. Indian Tribe Provisions
Native American tribal casinos gained several new rights, including the ability to offer online gambling to patrons located on reservation lands. This enables tribes to compete in digital markets while preserving sovereignty over gambling policies.
This sweeping compromise helped usher in the new era of gambling expansion we’ve witnessed over the subsequent 24 months. The public health funding provisions also laid the groundwork for the National Center for Gambling Research that opened last year, which aims to better understand problem gambling risks and devise evidence-based harm minimization policies.
Path Ahead
As gambling technology continues evolving at a rapid pace, more legislative action is guaranteed in the years ahead. Virtual and augmented reality gaming, cryptocurrency integration, and new esports wagering models will all demand attention. The framework is now in place for legislators and regulators to thoughtfully expand access while prioritizing responsible gambling and consumer safety.
It’s an exciting time in the gambling landscape across America. With support for legal gambling at an all-time high, states are sure to continue pushing the boundaries of what’s possible. But thanks to the regulatory compromises of recent years, they’ll pursue growth in a socially responsible way. The next wave of gambling expansion is set to deliver safe entertainment options to more Americans than ever before.
