While more states may approve iGaming in 2025, industry expert Richard Scheutz believes the approval pace won't match what occurred with sports betting. During a conversation with Deutsche Bank analyst Carlo Santarelli, Scheutz highlighted several key insights about the future of online gambling legalization.

Current iGaming Landscape:

• Only 7 states allow internet casinos: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia
• Comparatively, 38 states plus Washington, DC permit sports betting
• Missouri will become the 39th state to allow sports betting in 2024

Key Challenges for iGaming Expansion:

• Increased opposition from brick-and-mortar casinos
• Concerns about cannibalization of traditional casino revenues
• Data from Pennsylvania and Michigan strengthening opposition arguments

2025 iGaming Prospects:

• States considering legislation: Illinois, Indiana, Maine, Maryland, New York, and Ohio
• Maryland and Ohio show highest probability of passage
• Wyoming also considering legalization, though impact would be limited due to population size

California and Texas Outlook:

• California: Success likely requires collaboration with tribal casino operators
• Texas: Sports betting progress tied to casino resort development
• Las Vegas Sands backing could provide momentum in Texas
• Lt. Gov. Dan Patrick's opposition remains a significant hurdle

Operators prefer Texas over California due to fewer restrictions and no mandatory tribal gaming accommodations. However, significant legislative and political challenges remain in both states.

This measured expansion pace reflects growing industry awareness of the complexities involved in iGaming legalization, particularly regarding existing casino interests and state-specific regulatory requirements.

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