Top U.S. States Generating the Highest Revenue from Online Casino Gaming

Since 2013, real money online casinos have become more widely accepted and legalized by states throughout the country. As it stands, seven jurisdictions have enacted laws to authorize online casino games.

While an expectation remains that others will also enter the fold down the line, three states in particular have established themselves as industry leaders in terms of revenue generated by iGaming operators.

The first legal online casinos went online in Delaware and New Jersey in 2013, and it wasn't until six years later that other states began to legalize iGaming and take advantage of the millions of dollars in tax revenue stemming from those platforms.

With each year, though, the industry has shown unprecedented growth.

According to the American Gaming Association, online casinos in the seven states combined for $8.41 billion in 2024.

Yet of that total, three states – New Jersey, Pennsylvania and Michigan – accounted for nearly 90%, or around $7.54 billion. Unlike sports betting, where Missouri legalized on December 1, the dominance in iGaming of those three states appears to be unchallenged for the foreseeable future. 

As indicated by the AGA note, the top revenue-generating online casino states come down to three jurisdictions: New Jersey, Pennsylvania and Michigan.

New Jersey is considered the godfather of legal online casino gambling, launching in 2013. With nearly a dozen full years of iGaming, it should come as no surprise that the Garden State currently sits in the No. 1 spot in terms of revenue generated by online casinos.

During that time, roughly speaking, NJ online casinos have combined for $12.3 billion, leading to $1.1 billion in state tax revenue.

Even after over a decade, online casinos in NJ have continued to grow and set records. In August, the industry reported a state record $248.4 million in revenue as part of 13 straight months in which online casinos combined for at least $200 million. Prior to September 2024, that feat had not been accomplished.

Such success benefits the state's Casino Revenue Fund, which uses tax revenue from legal casino apps to fund programs that support seniors and individuals with disabilities.

Pennsylvania is coming up fast for that top spot, however. Launched in 2019, PA online casinos have totaled over $11 billion in revenue, which has resulted in $3.9 billion in tax revenue for the state.

The Keystone State may well be the first to crack a $300 million month, which no state has done to this point. In March, the industry came close as PA online casinos totaled $294.2 million during a run of 15 straight months, breaking $200 million.

In fact, Pennsylvania has seen three consecutive periods of reaching $275 million. Not since November 2024 have PA online casinos fallen shy of $260 million.

That tax revenue provides strong financial support to the state's Property Tax Relief Fund, which provides school property tax reductions for homeowners. Pennsylvania also diverts tax revenue from iGaming to support economic development and community projects throughout the state, as well as to the General Fund.

Meanwhile, Michigan – which went live with online casinos in 2021 – has seen $9.3 billion in lifetime revenue, leading to around $2.4 billion in tax revenue.

In August, MI online casinos combined for a state-record $263.3 million, right in the middle of three straight months of topping $250 million.

Along with New Jersey, Michigan sits around the $1.8 billion mark for revenue in 2025 so far. Leading the pack, though, is Pennsylvania at around $2.5 billion.

A variety of entities benefit from tax revenue derived from legal online casinos in Michigan, including the Internet Gaming Fund, which provides assitance for problem gambling prevention and first responder support. In addition, the Michigan School Aid Fund earns support from iGaming tax revenue. On top of it all, the City of Detroit, various local governing bodies and the Michigan Strategic Fund -- which promotes economic development -- also receive percentages of tax revenue.

Each state mentioned above features what experts believe are the best online casinos available. And each has found a spot as industry leaders.

In New Jersey, which began reporting individual online casino revenue in 2024, FanDuel Casino tops the list with around $930 million, followed by DraftKings Casino at about $889 million and BetMGM Casino at roughly $537 million.

Mixing things up, BetMGM leads in lifetime revenue in Michigan at around $2.8 billion in revenue, just ahead of FanDuel ($2.1 billion) and DraftKings ($1.6 billion).

Pennsylvania regulators do not break down online casino revenue by operator, but a similar trend exists when considering the mobile partners tied to the land-based casinos.

For example, Hollywood Penn National – with partners including DraftKings, BetMGM and Fanatics Casino – has generated some $4.1 billion in online casino revenue since 2019. Valley Forge, which boasts FanDuel Casino as its digital partner, has totaled around $2.5 billion, while Rivers Philadelphia (BetRivers Casino) has generated about $2.3 billion.

Grant Lucas