How Much Could New York Online Casinos Generate In Revenue?
Though efforts have been made to legalize online casinos in New York, it has yet to happen for The Empire State.
Only eight states have legalized iGaming, with just seven currently offering online casinos in their respective territories.
Should New York ever decide to push through and make online casinos in New York legal, just what kind of money could it generate?
Like online sports betting, New York would likely quickly become the largest online casino market in the US.
Pennsylvania Current iGaming Leader in US
Of the seven states that offered legal online casinos in 2025, Pennsylvania topped the list with $3.46 billion.
Michigan was second with $3.09 billion, while New Jersey online casinos brought in $2.91 billion to come in third.
These three are the clear iGaming leaders in the US and their yearly revenue continues to see a steady incline.
New York Leads Online Sportsbook Market
In 2025, New York led all legal online sports betting markets with $2.55 billion in revenue. That stemmed from over $26 billion in online sports wagers.
By comparison, Pennsylvania brought in $8.7 billion in online sports wagers, leading to $867.8 million in revenue.
New Jersey brought in $1.15 billion in online sports betting revenue. Michigan had $671.3 million in online sports betting revenue.
New York Doubles Michigan, NJ Adult Population
According to the latest Census, New York has a sizable advantage over other iGaming states when it comes to eligible gambling residents.
New York has approximately 16 million eligible gambling adults in the state.
By comparison, Pennsylvania is listed with about 10.3 million, Michigan comes in with about 7.5 million, and New Jersey about 7.1 million.
New York Could Generate $5-6 Billion in OC Revenue
A study by Analysis Group in 2024 projected that New York could generate $2.5 billion in iGaming revenue over its first full year, growing to $4.5 billion by its fifth year.
Two years later, those figures should be even greater.
In online sports betting alone, New York generates nearly 200% more in revenue. That is with a 55% larger adult population.
New York did 121% more online sports betting revenue than New Jersey last year, which I think helps provide a better target for iGaming.
While a new iGaming state takes some time to develop its customer base and earn the trust of the public, New York is already surrounded by legal online casino states. It’s not out of the question that New York residents are making the trek into New Jersey to play legal online casino games.
Immediately upon a launch, New York would have the potential to win the iGaming revenue race in its first year. That means it could produce $3.5 billion in its opening year.
Once established, I believe New York could steadily range from $5-6 billion in annual revenue.
Billions in Additional Tax Revenue for New York
Given that New York has a 51% tax on online sportsbooks for their revenue, the amount of tax revenue the state can generate from iGaming seems somewhat limitless.
Pennsylvania currently has a 54% tax on online slot revenue from its iGaming operators.
Should New York be able to legislate anything near a 50% tax on online casino revenue, that could generate $2-3 billion in annual tax revenue.
Drew Ellis has experience covering the gambling industries in North America and around the world. Decades of media experience provide him with the background to handle the complexities of different gambling laws and policies around the United States and North America. Ellis has primarily focused on online and retail casino news since 2021. Prior to working in the gambling industry, Ellis spent over 20 years in the newspaper industry, covering sports and the gambling. His work for The Mt. Pleasant Morning Sun and The Oakland Press was recognized with awards by the Associated Press and other media organizations. Drew has also contributed to the Detroit Free Press and the Associated Press.
