If the USA's relationship status with the gambling industry were a social media status, the chances are that it would say something like 'it's complicated'. While it is now possible to gamble in some form or another in almost every state, it was not so long ago that wagering was very difficult and restricted. In recent history, Americans had to go on vacation to Las Vegas or Atlantic City to play casino games legally. At the same time, the country was home to the self-proclaimed (and almost universally recognised) 'world centre for gambling and entertainment'. These days, Macau is the top global destination by market value, but Vegas holds a very special place in gambling iconography.
While the internet revolutionised the possibilities for online casinos and sports betting platforms, US regulators and lawmakers tended to continue down the 'prohibition route'. The 1961 Wire Act forbade cross-state boundary betting, and PASPA's draconian ban on sports betting drove businesses offshore or 'underground'. It is not that the Americans did not gamble at this time; it is just that they could not do so legally.
It is all somewhat complicated and changing all the time, so we sat down with iGaming specialist Jemma McColgan, from Casino.org, to find out what has changed and where the industry is going.
Gamblescope Team: Hi Jemma, there's a lot of talk about the PASPA overturn and how it has changed America's gaming industry, but what were the rules, and why were they changed?
Jemma McColgan: Hi, well, it is quite complicated, but essentially, the Professional and Amateur Sports Protection Act of 1992 (PASPA) banned sports betting just about everywhere. It was intended to protect the integrity of sports and prevent state-sponsored gambling, as it was feared that this could lead to corruption and match-fixing.
The ban remained in place for 25 years, until concerted efforts by the state of New Jersey led the Supreme Court to overturn it as unconstitutional in 2018. The Court ruled that the law violated the Tenth Amendment, which prevents the federal government from dictating what a state legislature can do.
While the repeal did not automatically make sports betting legal, it allowed individual states to decide how to tax and regulate it within their jurisdictions.
Gamblescope Team: Did it affect how casino gambling is regulated?
Jemma McColgan: No, the PASPA overturn did not affect casino gambling at all. However, in the twenty-five years the ban was in place, attitudes towards gambling changed considerably in many states. In addition, the internet had come of age, and people were playing online casino games at offshore, unregulated sites. Not only did this put citizens at risk, but it also meant that potential tax revenues were flowing offshore.
A handful of states, including New Jersey, which was looking to revitalise its casino industry, had already taken steps to legalize and regulate online gambling. Now residents of New Jersey, Michigan, West Virginia, Pennsylvania, Delaware, Rhode Island, and Illinois can legally play online casino games for real money from their computers or mobile devices.
In fact, there is now such a wide range of sites available that those looking for the best online casinos usually head over to a comparison site like Casino.org to find the best bonuses, games, and safest places to play. We are experts at what we do and sort out the wheat from the chaff. Just because a site is legal does not mean it is great!
Gamblescope Team: You mentioned real money casinos there, but what are the options for people who do not live in the states you mentioned?
Jemma McColgan: Well, as we have discovered with all things related to gambling in the US, it all depends on where you live. Essentially, gambling is now legal in some form or another everywhere except Hawaii and Utah. It is a pretty safe bet that gambling will never be a legal form of entertainment in either of these states due to cultural and religious reasons. However, elsewhere, the situation is pretty fluid, and regulations are updated all the time – another reason we recommend using our services, as we keep on top of the changing market.
To date, 32 US states, plus Washington, DC, and Puerto Rico, have legalized statewide online sports betting, and 40 in total now allow sports betting in some form or another. In addition, many states allow other forms of gambling in person and online.
Gamblescope Team: Can we assume from your answers that, since the overturning of PASPA, the industry's direction of travel has been toward greater gambling availability and less legal intervention?
Jemma McColgan: Yes and no! Sorry, not to give a clean-cut answer, but it is so dependent on where you look. At one point, sweepstakes casinos seemed to be the go-to option for people who enjoyed casino games but did not live in a state that permitted real money casinos. It appeared the regulators were happy with the sweepstakes loophole that allowed players to convert virtual currency into real prizes. And then, it seemed like all of a sudden they were not.
Two of the biggest markets, California and New York, clamped down on citizens' ability to play on these sites. In June 2025, New York's Attorney General shut down 26 sweepstakes platforms, and a statewide ban was introduced in December. Traditional promotional sweepstakes are still allowed, but not if they mimic casino-style dual-currency play. California brought in a similar ban, which has recently come into force.
Even though this is only two states, they are amongst the most populous and wealthiest, so everyone is keeping a close eye on the industry to see whether the platforms continue to develop social and sweepstakes casinos or whether they find a new opportunity.
Gamblescope Team: Overall, is the gambling industry in America growing and thriving?
Jemma McColgan: Looking at the big picture, it certainly is. While Las Vegas has faced some short-term wobbles due to a notable drop in international tourism, the domestic market is strong overall. Revenue in 2025 was expected to exceed US$209 billion, and it is forecast that, with growth of over 3%, the market will be worth US$244 billion by 2030. While it is difficult to calculate just how much of the revenue is a direct result of overturning PASPA, there is little argument that it has been a win/win ruling for the country. Online sports betting is particularly popular – without regulatory changes, this would not have been the case.
