A new year has arrived, bringing hope that additional states will endorse iGaming, but one industry expert thinks the pace of these approvals will differ from what occurred with online sports betting. 

During a recent discussion with Deutsche Bank analyst Carlo Santarelli, Richard Scheutz, who boasts over forty years of gaming industry experience, stated that state approvals for online casinos will not come as quickly as those for sports betting. Scheutz, the CEO of American Bettors’ Voice (ABV), cited possible cannibalization of physical (B&M) casinos as one factor why states are hesitant to adopt iGaming quickly.

"B&M opposition to iCasino, which was always present, has increased, in the aftermath of both Pennsylvania and Michigan legalizing the product, and thereby giving operators more data from which to support / frame an opinion on the magnitude of B&M cannibalization stemming from the product,” wrote Santarelli.

At present, only seven states — Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia — permit online casinos. That contrasts with 38 and Washington, DC, which allow certain forms of sports betting. This year, Missouri becomes a part of that group, bringing the total to 39. 

Avoid Wagering on Significant iGaming Growth in 2025 

In a report released earlier this week, Santarelli mentioned that a surge of state-level approvals for iGaming is improbable this year. 

The analyst identified Illinois, Indiana, Maine, Maryland, New York, and Ohio as potential states for related legislation, emphasizing that Maryland and Ohio have the highest chances of passing it. The industry and investment sector would probably be fairly content with that result as it’d signify advancement, but there would still be a degree of disappointment if neither Illinois nor New York — the two biggest states in that category — adopt internet casinos. 

Wyoming is another contender for iGaming legalization this year, but being the smallest state in the nation, it would probably have minimal impact on general approval trends. 

Santarelli observed that the investment sector probably shares the perspective expressed by Scheutz that land-based casinos are obstacles for iGaming, and broader acceptance of that betting type is unlikely to occur this year. 

California, Texas Remarks 

Scheutz and Santarelli also talked about the prospects for California and Texas becoming states that permit sports betting. A few years back, the ABV CEO was one of the initial voices to highlight that the commercial operators' 2022 ballot initiative for legalizing sports betting was doomed, and he was right, as voters decisively turned it down. 

He informed Santarelli that it seems operators have grasped their lesson and now realize that the only way to achieve sports betting in California is by collaborating with, rather than bypassing, tribal casino operators. 

“Mr. Schuetz is of the view that the tribes will work through balance of power issues, with the potential for a sharing of proceeds agreement, while the OSB operators primarily serve to provide brand equity and technological and operational expertise,” said Santarelli.

Regarding Texas, Scheutz informed the Deutsche Bank analyst that sports betting might gain traction this year if it demonstrates advantages for the initiative to establish Las Vegas-style casino resorts in the state. Support for the plan is bolstered by the substantial financial resources of Las Vegas Sands (NYSE: LVS) shareholder Dr. Miriam Adelson, yet it is uncertain whether Lt. Gov. Dan Patrick (R) will alter his stance on gaming expansion — which currently seems improbable. 

For sportsbook operators, Texas would be the favored inclusion over California since it would facilitate a competitive market without the need for obligatory adjustments for tribal gaming organizations.