Publication date: 5 January 2026
Obtaining a US online casino license unlocks access to one of the world’s most promising yet complex markets. Therefore, understanding the state-by-state online casino licensing system in the USA is the first critical step toward success. Crucially, the system lacks unified federal regulation. Instead, authority is fully delegated to individual states, creating a complex “patchwork” of rules. Currently, online casinos (iGaming) are legal in seven states: New Jersey, Pennsylvania, Michigan, West Virginia, Connecticut, and Rhode Island. Nevada stands as a separate case, where only online poker is legal. Among these, New Jersey, Pennsylvania, and Michigan represent the largest and most developed commercial markets, effectively setting the tone for the entire industry.For a more detailed analysis of market volume, trends, and audience behavior, we recommend reviewing the separate iGaming market overview of the USA on 3S.INFO.
The analysis is based on data from official state regulators and updated for the 2025–2026 period.
Market access is strictly regulated. Operators must navigate one of three primary models, and the chosen path defines the entire strategy.
This is the most common model. Typically, the initial right to conduct online operations belongs to holders of land-based casino licenses or tribal operators. Consequently, major online brands like BetMGM or DraftKings act as technology partners (skins). They operate under the umbrella of this primary license while sharing revenue.
This is a rarer and more expensive model. It allows experienced external operators to obtain a license directly, without a mandatory land-based casino partnership. However, the requirements for reputation and capital are exceptionally high.
In this model, the state tightly controls the market through a single or limited number of operators. These operators work under a special contract, which practically closes the market to new independent players.
Important Clarification: In several states, requirements and costs can differ for commercial versus tribal licenses. This is due to the special sovereign status of tribes. Michigan is a current example, and California may become one in the future.
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The financial entry barrier is a key factor. Costs vary enormously, from hundreds of thousands to tens of millions of dollars. The table below provides estimated data for key states based on public regulatory information.
| State | License Type / Model | Approximate Cost and Periodic Fees (USD) | Key Features |
| Pennsylvania (PA) | Interactive Gaming Certificate (QGE or Partner) | Up to $10 million initially ($4M per category: slots, tables, poker). Renewal: $250,000 every 5 years. | The highest entry ticket. Allows direct external operators (QGE). High GGR tax (54% for slots). |
| New Jersey (NJ) | Internet Gaming Permit (Partner with Casino) | $500,000+ ($100K application + $400K license). Annually: $250K (renewal) + $250K (responsible gaming fee). | The first state to legalize iGaming. Mature and competitive market. Partnership with an Atlantic City casino required. |
| Michigan (MI) | Internet Gaming Operator (Partner with Commercial or Tribal Casino) | $150,000+ ($50K application + $100K license). Annually: $50,000. | A dynamically growing market. Separate terms and fees may apply for partnership with tribal casinos. |
| West Virginia (WV) | Interactive Wagering License | $250,000 for a 5-year license. Renewal: $100,000. | A smaller but stable market. The license is unified for sports betting and iGaming. |
| Delaware (DE) | Contract with State Lottery (Monopoly) | No fixed license fee. | State revenue is generated via deductions >50% of GGR. The market is closed to new independent operators. |
| Rhode Island (RI) | Exclusive Operator Contract (Bally’s) | No fixed license fee. | Bally’s gives the state 61% GGR from slots and 15% from tables + revenue-sharing, totaling over 80% of income. |
| Connecticut (CT) | Exclusive Agreement with Tribal Operators | Terms and fees are determined by commercial agreements and are not publicly fixed. | The market is divided between the Mohegan Sun and Foxwoods tribes. Access for external brands is only possible through them as skin partners. |
Note: In all states, besides license fees, significant taxes on Gross Gaming Revenue (GGR) apply. These taxes are the main ongoing financial obligation.
The regulators’ due diligence procedure is extremely rigorous. Below are the core requirements common to most states.
First, operators must have an impeccable reputation (Suitability). Regulators scrutinize all beneficial owners, top management, and key shareholders. They review financial, judicial, and business histories. Any criminal record typically leads to rejection.
Second, proving a transparent source of funds is mandatory. Operators must provide audited financial statements and detailed proof of fund legality for fees and operations.
A partnership or direct qualification is essential. For the “skin” model, an active agreement with a land-based casino or tribe is needed. For the QGE model, direct compliance with the state’s high criteria is required.
Finally, technical compliance and certification are non-negotiable. The gaming platform, RNG, and each game must pass an audit by an accredited lab (e.g., eCOGRA). Integration with the regulator’s monitoring systems is also mandatory.
A successful market entry requires a systematic approach. The process involves four key stages.
First, conduct an in-depth market analysis and select a jurisdiction. Evaluate the cost, market potential, competition, and tax burden. Pennsylvania suits large investors seeking independence, while Michigan is better for partnerships.
Next, begin application preparation and submission. This involves gathering corporate, financial, and personal documents. Operators must also undergo checks and pay a non-refundable application fee.
Then, start technical integration and certification. This parallel process for software certification and integration can take 6-12 months.
Finally, upon approval, conclude operational agreements. Operators sign the final contract with the partner or regulator and make the remaining license payments.
Important reminder: Unlike Europe, a single license for the entire USA does not exist. Each state is a separate jurisdiction. Therefore, a state-by-state expansion strategy is common, starting with key markets.
The U.S. iGaming market remains complex, capital-intensive, yet rewarding. Here are the main takeaways for companies seeking a state-by-state online casino license in the USA.
Information Accuracy: Fee and requirement data is cross-checked with official state regulator sources and updated as legislation changes (relevant for the 2025–2026 period).
Obtaining a US online casino license (iGaming license USA) is a state-level process. There are three primary paths: 1) The Partnership (“Skin”) Model with an existing land-based casino (used in New Jersey, Michigan). 2) Becoming a Qualified Gaming Entity (QGE) for a direct license (available in Pennsylvania). 3) Securing a contract under a State Monopoly (e.g., Delaware, Rhode Island). The choice depends on your budget, desired independence, and target state. Our guide above details each model and its strategic implications.
The cost of a US online casino license varies dramatically by state. Pennsylvania has the highest entry point at up to $10 million for a direct QGE license. New Jersey’s initial fees start around $500,000, while Michigan’s are approximately $150,000. It’s crucial to remember that these are initial fees; significant annual renewals and, more importantly, state taxes on Gross Gaming Revenue (GGR)—which can exceed 50%—form the largest ongoing cost. Refer to our detailed state comparison table for a complete breakdown.
As of 2025-2026, full-scale online casino (iGaming) operations are legal in seven states: New Jersey, Pennsylvania, Michigan, West Virginia, Connecticut, and Rhode Island. Nevada only permits online poker. For commercial operators, the largest and most established markets are the “Big Three”: New Jersey, Pennsylvania, and Michigan, which offer the highest revenue potential.
Regulators enforce strict requirements for a US online casino license. Key pillars include: 1) Impeccable Suitability: Deep background checks on all owners and executives. 2) Financial Transparency: Proof of lawful fund origins and financial stability. 3) Legal Market Access: Either a partnership with a land-based licensee or meeting QGE criteria. 4) Technical Compliance: Certification of gaming software and systems by accredited testing labs. Failure in any area typically results in application denial.
The difference highlights two core US online casino licensing models. Pennsylvania (PA) offers a direct but costly QGE license, providing full operational independence for a premium price. Michigan (MI) operates on a mandatory partnership (“skin”) model, requiring a tie-up with a land-based (commercial or tribal) casino. This makes Michigan’s entry cheaper but creates an ongoing dependency on the partner. The choice hinges on your capital and strategy: pay for independence in PA or share revenue for lower upfront cost in MI.
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