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Key facts (as of 29 October 2026)
- Seven live online casino states in 2025: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island and West Virginia (SBC Americas). iGaming revenue across them grew 27.6% to a record $10.73bn in 2025; Michigan, New Jersey and Pennsylvania made up nearly 90% (American Gaming Association).
- Pennsylvania was the largest market, with revenue up nearly 28% to $3.46bn (AGA). Its tax is 52% of daily gross revenue from slot-type games and 14% from table-type and peer-to-peer games, paid weekly (4 Pa.C.S. §13B52).
- New Jersey raised its internet gaming tax to 19.75% of gross revenue from 1 July 2025 (P.L.2025, c.66).
- Michigan taxes commercial internet gaming operators on a graduated scale from 20% to 28% of annual adjusted gross receipts. The section was amended by Public Act 93 of 2026, effective 21 September 2026 (MCL 432.314).
- Maine: the four Wabanaki Nations hold exclusive online casino rights. The regulator says the first quarter of 2027 is a possible launch window, not a deadline (SBC Americas, 19 October 2026).
- Federal layer: the Unlawful Internet Gambling Enforcement Act (UIGEA) rules at 31 CFR Part 132 require designated payment systems, including card systems and ACH, to have policies to identify and block restricted transactions.
State comparison
| State | Regulator | Tax on online casino | Payment or banking point |
|---|---|---|---|
| New Jersey | Division of Gaming Enforcement (DGE) | 19.75% of internet gaming gross revenue, from 1 July 2025 | The 8% casino gross revenue tax does not apply; an investment alternative tax of 5% (or a 2.5% investment alternative) does |
| Pennsylvania | Pennsylvania Gaming Control Board (PGCB) | 52% slots; 14% tables and peer-to-peer | Gross interactive gaming revenue held in a separate bank account until the tax is paid |
| Michigan | Michigan Gaming Control Board (MGCB) | 20% to 28%, graduated; tribal operators pay under a separate section | Tax paid monthly, due on the 10th of the next month |
| Maine | Gambling Control Unit | Not covered here | In April 2026 Maine also banned sweepstakes casinos and the use of credit cards for gambling (SBC Americas) |
| Connecticut, Delaware, Rhode Island, West Virginia | State regulators | Not covered here | Not covered here |
Michigan tax bands
| Annual adjusted gross receipts | Tax |
|---|---|
| Under $4m | 20% |
| $4m to under $8m | 22% |
| $8m to under $10m | 24% |
| $10m to under $12m | 26% |
| $12m or more | 28% |
Source: MCL 432.314. Detroit casino licensees may also owe a 1.25% city municipal services fee on internet gaming receipts.
Pennsylvania: tax and the separate account
| Game type | Tax on daily gross interactive gaming revenue |
|---|---|
| Peer-to-peer (for example, poker) | 14% |
| Non-peer-to-peer table games | 14% |
| Non-peer-to-peer slot-type games | 52% |
The tax is paid weekly. The certificate holder must keep a separate bank account into which gross interactive gaming revenue is deposited until it is paid to the state (4 Pa.C.S. §13B52(b)).
UIGEA: the payment-side rules
UIGEA does not license anyone. It requires participants in "designated payment systems" to block restricted transactions, meaning payments for unlawful internet gambling.
flowchart TD
A[Player payment to a gambling site] --> B{Is the gambling lawful where the bet is placed and received?}
B -- Yes, for example a state-licensed intrastate bet --> C[Not a restricted transaction]
B -- No --> D[Restricted transaction]
D --> E[Card systems, ACH, wires, cheques and money transmitters need policies to identify and block]- Designated systems: card systems, ACH, cheque collection, money transmitting businesses and wire transfer systems (31 CFR §132.3).
- What "unlawful" excludes: intrastate and intratribal transactions, and those allowed under the Interstate Horseracing Act (31 CFR Part 132).
- What participants must have: written policies and procedures reasonably designed to identify and block, or otherwise prevent, restricted transactions (§132.5).
NoteState-licensed online casinos rely on the intrastate carve-out, which is why operators check that the player is inside the state. Banks still decide their own risk appetite; see De-risking.
Timeline
| Date | Event |
|---|---|
| 20 December 2019 | Michigan Lawful Internet Gaming Act (Act 152 of 2019) takes immediate effect |
| 1 July 2025 | New Jersey internet gaming tax rises to 19.75% |
| January 2026 | Maine iGaming bill becomes law without the governor's signature |
| April 2026 | Maine bans sweepstakes casinos and credit cards for gambling |
| 21 September 2026 | Michigan Public Act 93 of 2026 takes effect |
| 30 October 2026 | Maine comment deadline on proposed iGaming rules |
| Q1 2027 | Possible Maine launch window |
Q/A
Is there one US online casino licence?
No. Each state that allows online casino runs its own licensing. In 2025 seven states had live markets.
Does UIGEA ban online gambling?
No. It targets payments for gambling that is already unlawful under other federal or state law, and puts blocking duties on payment systems.
Why does Pennsylvania's separate account matter to a PSP?
Gross interactive gaming revenue has to sit in a dedicated account until the weekly tax is paid. Treasury and settlement design must keep that money apart.
Is Ontario covered here?
No. See Ontario iGaming payments.
Sources
- American Gaming Association, State of the States 2026: https://www.americangaming.org/resources/state-of-the-states-2026/
- SBC Americas, "Maine iGaming could launch in early 2027, but hurdles remain" (19 October 2026), secondary: https://sbcamericas.com/2026/10/19/maine-igaming-launch-date-target/
- Pennsylvania General Assembly, 4 Pa.C.S. §13B52: https://www.legis.state.pa.us/WU01/LI/LI/CT/HTM/04/00.013B052.000..HTM
- New Jersey Legislature, P.L.2025, c.66 (approved 30 June 2025): https://pub.njleg.gov/Bills/2024/PL25/66_.HTM
- Michigan Legislature, MCL 432.314: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-432-314
- eCFR, 31 CFR Part 132: https://www.ecfr.gov/current/title-31/subtitle-A/part-132
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