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Whenever we write about the current state of the iGaming industry in the USA, we are always aware that everything could change. iGaming is regulated at the state level, meaning there are potentially 50 markets rather than one.
While it is potentially a huge market, it has proved challenging, and many overseas-based operators have had their fingers burned and retreated. While the likes of FanDuel and DraftKings have expanded from sports betting to online casino, the likes of Super Group's Spin and Jackpot City brands have quit key markets in New Jersey and Pennsylvania, citing regulatory changes and market dynamics. Super Group had already exited the US Sportsbook market, so it has not been an easy ride for them.
We wondered how legislative changes in general are impacting the iGaming market, so we invited industry expert Alexander Korsager from Casino.org to share his insights.
Hi Alexander, welcome to CasinoLifeMagazine. Thanks for taking the time to come and share your thoughts on iGaming legislation. Before we dive in, could you introduce yourself to our readers and tell us more about the service you work for?
Alexander Korsager
Thanks for inviting me in. I am the Chief Gaming Officer at independent online review site Casino.org, and our aim is to help players find the best online casinos out there. Unbelievably, we have been in the game for over three decades! The states might be a relative newcomer to the legal online casino world, but other jurisdictions have allowed it for considerably longer.
We have been there since the beginning and seen significant changes, adaptations, improvements, and extraordinary tech and finance developments in that time. Suffice to say, it has been an interesting journey, and we have accumulated enormous expertise and helped millions of players. The US is a fascinating market because it is both potentially so lucrative and equally fragmented and disparate. We work in markets where online gambling is legal, so keeping up with changes in regulation is essential.
Personally, I have been immersed in online casinos and iGaming for over eight years. I have a passion for providing players with up-to-the-minute expertise, and I like to think that my advice is second to none. As well as writing and researching, I have been honing my personal iGaming skills for over a decade – I believe this helps me write market-leading content that helps players improve and, ultimately, win more. My go-to position is that the house doesn't beat the player. It allows the player to beat themselves. We provide tips and tricks to keep the house from doing too much of the winning.
Impressive! Good to hear that you keep up with all the legislative changes. What do you think the big ones have been recently, and what can you see coming down the tracks?
Alexander Korsager
As you said, iGaming in the US does not stand still in terms of regulation. A couple of years back, all the operators (and us reviewers) and the players were very excited about Sweepstakes casinos, which allowed players across the country to play casino games for virtual currency. They operate under entirely different legislation from state-regulated real-money online casinos, and while they were (and still are) incredibly popular and fun, some states have subsequently outlawed them. As two of those states, California and New York, are amongst the most populous (and therefore lucrative) US territories, this has been quite a blow for the operators.
While there is still plenty of action on the social and sweepstakes platforms and apps, there will likely be considerably less investment in game development than there might have been otherwise.
Ironically, though, many people think the New York ban could be a step toward clearing the path for real-money online casinos to be approved and licenses issued. New legislation has been introduced, and as many of the previous objections have now been addressed, there could be significant progress. If New York were to approve iGaming, it would have a massive impact on the industry.
Interestingly, if it does happen, commercial online operators will need to be paired with existing brick-and-mortar casinos in the state, which will obviously affect revenue streams and the potential number of iGaming outlets. In New York, we are all excited about the prospect, but I do not think anyone is holding their breath. It is the fourth consecutive push, and it could be the one to get the law over the line.
Can you see any other possible changes?
Alexander Korsager
Everyone is waiting expectantly for Illinois, as it is the closest state to legalizing full online casino gaming. HB1167 has passed committee and just needs a full House vote. When I say 'just', I am not being complacent; there are still many hurdles to overcome before we can say with certainty that it will happen.
However, the landscape in the country does seem to be changing, and attitudes towards real-money iGaming seem to be shifting. I checked before I came in, and eight more states introduced online or hybrid casino bills this year. Together with Illinois and New York, 2026 seems to be experiencing the largest wave of iGaming legislative activity since the overturning of PASPA in 2018.
While none of us can predict the outcome, it is certainly an interesting time to be working in the US iGaming market.
Thank you for using the word predict, as it segs nicely into our next question. How do you think Kalshi-style prediction markets will impact iGaming?
Alexander Korsager
Well, I am glad you asked that question because prediction markets are an interesting beast. As a parallel, national quasi-gambling opportunity, they are definitely going to have an impact, but possibly more on sports betting than iGaming. Legally, they are NOT a gambling product and are regulated as financial derivatives at a federal level.
However, to the general public, they look, feel, and behave in a very similar way to real-money gambling sites. At Casino.org, we are keeping a close eye on the apps and what they offer, and applying the same rigorous standards to rate and review them. After all, if our readers are going to try them out, we want to equip them with all the information they need to succeed.
Right now, there is a tug-of-war between state and federal regulators, with quite a few battles going to court. Ultimately, more competition should be good for players (at least in the short run), because traditional sites will be keen to hold onto existing customers. We expect to see some healthy bonus and jackpot offers emerging!
