Experts: iGaming Legalization Will Chart a Distinct Path from Sports Betting

In a recent conversation with Deutsche Bank analyst Carlo Santarelli, Richard Schuetz—an industry veteran with over four decades of experience—shared his insights on the slower-than-expected rollout of internet casinos across the U.S. Schuetz, who currently serves as CEO of American Bettors’ Voice (ABV), cited concerns over potential cannibalization of brick-and-mortar (B&M) casinos as a key reason why states aren’t greenlighting iGaming as swiftly as they did for sports betting.

“Opposition from B&M operators to iCasino, which has always existed, has only grown stronger—especially after Pennsylvania and Michigan legalized the product. Their data has helped shape opinions on just how much iGaming might cannibalize existing casino revenues,” Santarelli wrote.

Currently, just seven states—Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia—offer legal iCasino, compared to 38 states plus Washington, D.C., that allow some form of sports betting. Missouri is set to join the sports betting ranks this year, bringing the total to 39.

iGaming Expansion in 2025? Don’t Bet on It

Santarelli’s latest report suggests the pace of iGaming approvals is unlikely to accelerate in 2025. He identified Illinois, Indiana, Maine, Maryland, New York, and Ohio as potential candidates for legislative action, though he sees Maryland and Ohio as the most likely to move forward.

While any progress would be welcomed by the industry, there could be a sense of disappointment if larger markets like Illinois or New York fail to embrace iGaming.

Wyoming is also a contender for iCasino legalization, but as the smallest state in the country, it’s unlikely to materially impact broader adoption trends.

Santarelli noted that the investment community appears aligned with Schuetz’s perspective: resistance from land-based casino operators remains a major hurdle to wider iGaming expansion in the near term.

California & Texas: The Big Prize in Sports Betting

Schuetz and Santarelli also discussed the prospects for California and Texas joining the ranks of states offering legal sports wagering. Schuetz, who accurately predicted the failure of California’s 2022 ballot initiative—backed by commercial operators seeking sports betting approval—believes the lesson has been learned: the only viable path forward in California runs through tribal gaming interests.

“Mr. Schuetz believes the tribes will ultimately resolve balance-of-power issues and explore revenue-sharing agreements, while commercial operators can contribute by providing brand equity, technology, and operational expertise,” Santarelli wrote.

In Texas, Schuetz sees an opening for sports betting—particularly if it’s tied to efforts to bring Las Vegas-style casino resorts to the state. Support for this push includes the deep pockets of Las Vegas Sands (NYSE: LVS) shareholder Dr. Miriam Adelson. However, the stance of Lt. Gov. Dan Patrick (R) remains a key obstacle, as he has so far resisted calls for gaming expansion.

For sportsbook operators, Texas represents a more attractive prize than California, as it would likely offer a competitive, open market without mandatory accommodations for tribal entities.