Online casino legislation faces limited prospects in 2025, with only a handful of states potentially considering iGaming expansion, according to Deutsche Bank analyst Carlo Santarelli in a recent DraftKings (NASDAQ: DKNG) report.

Currently, only seven states permit online casinos: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. No new states joined this list in 2024.

Among the six states considering iGaming legislation (New York, Ohio, Illinois, Indiana, Maine, and Maryland), only Ohio and Maryland show promising prospects for near-term adoption. New York and Illinois, despite being the largest potential markets, have the lowest probability of success.

Wyoming, which recently filed iGaming legislation, would have minimal impact on gaming operators due to its small population.

Key challenges for gaming operators include:

• Limited legislative momentum in major markets
• Required tribal gaming partnerships in California and Florida
• Profitability concerns in large markets like New York

For DraftKings specifically, meeting 2025 earnings targets becomes crucial given the dim legislative outlook. The company's strong cash position and low debt could lead to strategic acquisitions to drive growth, following recent purchases of Simplebet Inc. and Jackpocket.

In sports betting, Texas remains a critical market, but if legislation fails this year, the next opportunity may not arise until 2027. California and Florida present additional challenges, requiring potentially unfavorable tribal gaming partnerships similar to New York's market structure.

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