The push to expand regulated online casinos in the United States is colliding with a wave of regulatory action abroad and rapid technological change at home, reshaping how operators, lawmakers and advocates are positioning themselves for 2026.
In the past six months state legislatures and industry watchers have tracked a flurry of activity: new bills introduced in Ohio (SB 197 and HB 298) and renewed talks in Massachusetts and Illinois, Maine’s contentious LD1164 moving through 2025 sessions, and continued momentum in states that already host licensed iGaming markets. Industry analysts say the prospect of more states legalizing internet casino play remains strong but uneven, dependent on tax deals with brick-and-mortar operators, problem-gambling concerns and political calendars. A current, regularly updated tracker of state-level iGaming proposals and status shows multiple active measures and growing legislative interest as 2026 begins. Comped’s U.S. iGaming bill tracker
Growing U.S. legislative activity and the state-by-state patchwork
Ohio’s pair of bills – filed in mid-to-late 2025 – seek to create a regulated iGaming framework that would include online casino and expanded lottery-style offerings, mirroring the incremental approach seen in states such as Michigan and Pennsylvania. Maine’s LD1164, which would grant exclusive online casino rights to tribal operators and set tax and licensing terms, generated heated debate in 2025 about tribal sovereignty, revenue-sharing and social-harm mitigation. Meanwhile, Illinois and Massachusetts both saw renewed proposals and hearings in late 2025 as policymakers weigh economic upside against addiction and enforcement risks.
Industry metrics underline why states are engaged: operators report robust year-on-year online casino revenue growth where markets are established, prompting both states and incumbent casinos to reassess their positions on legalization. But opposition remains potent—testimony in several hearings has leaned heavily on addiction, youth access and the outsourcing of enforcement to private platforms.
Regulation tightens overseas as tech accelerates
Outside the U.S., regulators have intensified enforcement. The UK Gambling Commission continued 2025 clampdowns on illegal operators and strengthened social-responsibility expectations for direct marketing and stake limits, shifting deadlines and guidance through the year. In Europe and Australasia, regulators have ratcheted up scrutiny of advertising practices and payment flows tied to unlicensed sites, while several jurisdictions explore stricter identity checks and limits designed to curb problem play.
At the same time, operators are rolling out more advanced technologies. AI tools — used to personalize promotions, optimize product mix and deliver in-session offers — are now mainstream in many platforms. Industry surveys in 2025 reported that a growing share of operators have deployed machine-learning models for both engagement and responsible-gambling monitoring, though watchdogs and consumer advocates warn that the same systems can be turned toward hyper-targeted retention tactics. “AI can detect risk, but it can also be weaponized to keep vulnerable players engaged,” said a regulatory consultant who has briefed state legislatures in 2025.
Blockchain, too, is being trialed beyond crypto payments: a handful of operators have experimented with provably fair ledgers and on-chain certification of promotions and jackpot outcomes — moves aimed at building trust but still limited by regulatory and technical hurdles.
Industry consolidation, advertising scrutiny and what to watch next
Market consolidation continued through 2025 as larger operators absorbed challengers or exited marginal markets, a trend driven by rising compliance costs and the need for scale to invest in technology and marketing. Advertising has come under particular fire: platforms and regulators took steps in late 2025 to curb misleading ads and sweepstakes-style circumvention schemes, prompting operators to revise media buys and creative strategies ahead of 2026.
What to watch next: state legislative calendars in early 2026 will reveal whether Ohio, Massachusetts, Illinois and other jurisdictions move from bills to binding law; regulatory rulings in the UK and EU over marketing and stake limits will set international guardrails; and how operators deploy AI and blockchain in customer protection versus customer acquisition will shape both public perception and regulatory responses. With revenue growth on one hand and enforcement risk on the other, the coming year looks set to define whether online casinos scale responsibly – or trigger a harsher regulatory backlash.