Introduction
The U.S. online casino industry is rapidly expanding, with states like New Jersey, Pennsylvania, and Michigan generating billions in annual gaming revenue. For entrepreneurs looking to start an online casino in the USA, the market presents a high-reward opportunity but one that requires careful navigation through complex regulations, licensing requirements, and technological standards.
Steps to Start an Online Casino Business in the USA
Entering the U.S. iGaming market requires a strategic and fully compliant approach. Here are the essential steps to start an online casino in the USA successfully in 2025:
1. Market Research and Business Plan Development
Before investing capital, conduct in-depth market research to understand state-level regulations, target demographics, and player behavior. Assess your Total Addressable Market (TAM) and key competitors operating within the online casino USA ecosystem.
A strong business plan should include:
Revenue projections and break-even analysis
Funding strategy (self-funded, VC, or partnership)
Licensing and operational cost estimates
A roadmap to obtain US iGaming license within 6–12 months
2. Choosing Reliable Software Providers
The success of your platform largely depends on the strength and credibility of your technology partner. Choose a casino game software provider that offers:
GLI-certified games and random number generators (RNGs)
Integration support for multiple devices (web + mobile casino apps)
24/7 technical support and scalability for U.S. traffic
Compatibility with responsible gambling tools and AML/KYC features
Prefer U.S.-licensed or globally trusted vendors that align with state regulatory frameworks.
3. Technology Stack & Infrastructure Setup
To set up a casino platform USA, you need a secure and modular tech stack. Your infrastructure should include:
Cloud hosting (AWS, Azure, GCP) with regional failover
Scalable microservices for wallet, user management, and CRM
End-to-end two-factor authentication and SSL encryption
Certified geolocation solutions like GeoComply to meet state requirements
Integration-ready APIs for payment gateways, affiliate systems, and game providers
A well-architected backend ensures your platform is scalable, secure, and compliant.
4. Game Portfolio Selection
Offer a diverse and engaging casino game portfolio to attract and retain users. Consider:
Slot titles from top U.S. providers like Light & Wonder or IGT
Live dealer games from Evolution or Playtech’s U.S.-licensed studios
Table games like blackjack, roulette, and baccarat with customizable RTPs
Emerging formats: crash games, bingo, or virtual sports
Partner with casino game aggregators to access hundreds of games via a single integration.
5. Payment Gateway Integration
Seamless and secure payments are vital to player trust. Integrate payment gateways that are compatible with U.S. regulations and player preferences, including:
VISA, Mastercard, PayPal, ACH transfers
Cryptocurrency deposits via NYDFS-compliant custodians
Fraud prevention and AML/KYC compliance tools
Chargeback management and bonus abuse prevention controls
Ensure your platform can handle both fiat and cryptocurrency deposits safely.
6. Obtaining Necessary Licenses & Permits
Securing a USA online casino license is the most critical and often time-consuming step. Depending on the state (e.g., NJ, PA, MI), you may need:
A partnership with a land-based or tribal casino (market access)
Background checks and financial disclosures
GLI/BMM certification for all systems
Compliance with state-by-state casino laws and tax frameworks
Each state has its own application process, fees, and technical standards. Work closely with a legal advisor experienced in online gambling regulations and gaming license requirements.
SDLC Corp will assist you throughout the entire licensing process, offering end-to-end consulting services to ensure a smooth, compliant, and efficient acquisition. Our team of legal, technical, and compliance experts provides strategic guidance for securing gaming licenses across leading regulatory jurisdictions, helping you navigate every step with confidence and precision.
Understanding the Online Casino Industry in the USA
The U.S. iGaming market has become one of the most promising and competitive landscapes for entrepreneurs looking to start an online casino in the USA. With rapid legalization across several states and increasing consumer demand for digital gaming experiences, the industry’s growth trajectory continues to outperform expectations.
1. Market Size and Potential:
As of 2025, the online casino USA market is valued at over USD 6.2 billion in annual gross gaming revenue (GGR), driven by regulated states such as New Jersey, Pennsylvania, Michigan, West Virginia, and Connecticut. Projections estimate this figure could double to over USD 13 billion by 2028, assuming more states enter the regulatory fold.
Key Stats:
New Jersey alone contributed over USD 1.9 billion in GGR in 2024
Pennsylvania saw a 22% YoY growth in online casino activity
Mobile casino apps accounted for over 70% of total wagers
The market presents a compelling opportunity for operators who can obtain a USA online casino license and deliver secure, state-compliant platforms.
2. Global Comparison:
Compared to established markets like the UK, Malta, and parts of Europe, the U.S. online casino industry is less saturated but highly regulated. While countries like the UK operate under a single national framework, the U.S. requires operators to navigate state-by-state casino laws, making the entry process more complex but also more controlled.
| Region | Licensing Model | Tax Rate | Market Maturity |
|---|---|---|---|
| USA | State-specific | Varies (15–54%) | Emerging but fast-growing |
| UK | National (UKGC) | ≈ 21% | Highly mature |
| Europe (Malta) | Central (MGA) | ≈ 5% | Fully liberalized |
| Australia | State/territory-specific | 10–20% | Mature |
| Asia (Philippines) | PAGCOR or offshore | 2–5% | Rapidly growing |
The complexity of U.S. licensing is offset by high player lifetime value (LTV), reliable payment infrastructure, and strict compliance making it an ideal long-term investment zone for serious operators.
3. Factors Driving Growth:
Several macro and micro trends are accelerating the growth of the U.S. iGaming sector:
State Legalization Momentum: More states are introducing bills to legalize online casinos, following sports betting success.
Mobile-First Behavior: High smartphone penetration supports demand for seamless mobile casino apps.
Cross-Industry Synergies: Sportsbooks and fantasy platforms are cross-selling casino games to their users.
Technological Advancements: Adoption of geolocation solutions, secure payments, and cloud-based infrastructure has lowered barriers to entry.
Crypto Adoption: Some states and platforms are experimenting with cryptocurrency deposits, appealing to younger demographics.
Consumer Trust: U.S.-regulated platforms benefit from strict AML/KYC compliance and advanced responsible gambling tools, which build player confidence.
Together, these factors position the U.S. as one of the most lucrative and sustainable regions for launching a fully legal and profitable online casino.
Legal and Regulatory Landscape in the USA
Launching a legal online casino in the U.S. means understanding and complying with both federal laws and state-specific regulations. While federal statutes shape the broad framework, each state licenses and governs online casino operations independently.
1. Primary Legislation:
Federal laws influence interstate gambling activities and financial compliance but do not prohibit state-level iGaming.
Wire Act (1961): Prohibits interstate transmission of betting information
Unlawful Internet Gambling Enforcement Act (UIGEA, 2006): Regulates payment processing for illegal gambling
Bank Secrecy Act (BSA): Enforces anti-money laundering (AML) reporting and compliance
2. State-specific Regulations:
Operators must obtain individual licenses from state regulators where iGaming is legal. Rules, taxes, and licensing models vary by state.
New Jersey: Regulated by NJ Division of Gaming Enforcement (DGE)
Pennsylvania: Overseen by PA Gaming Control Board (PGCB)
Michigan: Licensed via Michigan Gaming Control Board (MGCB)
West Virginia & Connecticut: Require partnership with land-based or tribal casinos
Application fees: Range from $100,000 to $10 million depending on the state
3. Compliance & Legal Guidance:
Strict adherence to state and federal compliance is mandatory to operate legally and avoid penalties.
Implement AML/KYC programs and file reports with FinCEN
Use certified geolocation solutions to restrict access by location
Maintain RNG certification and fair gaming audits (GLI, iTech Labs)
Partner with legal advisors specializing in online gambling regulations
Setting Up Your Online Casino Platform
Platform Options
You have two main choices when it comes to platform setup:
1. White-Label Solutions
2. Custom Development
White-Label:
Quick launch (3–4 months)
Lower upfront cost
Pre-built games, KYC, payment modules
Ideal for testing markets or limited budgets
Custom Development:
Full control over UX, features, and integrations
Scalable and brand-differentiated
Higher cost and longer time to market
Best for long-term, multi-state expansion
Mobile Compatibility
In the U.S., over 70% of online casino traffic comes from mobile devices, making mobile-first design essential.
Responsive web apps or native iOS/Android apps
Lightweight UI with intuitive navigation
Fast-loading games and secure mobile payments
Support for biometric login and two-factor authentication
Compliance with Apple/Google real-money app guidelines
A smooth mobile experience is critical for player retention, conversion rates, and long-term success in the online casino USA market.
Monetization & Payment Options for the USA Market
To succeed in the online casino USA market, you need smart revenue models and secure, compliant payment systems.
Monetization Strategies
House Edge: Built-in profit from RTP
Bonuses & Promotions: Free spins, deposit matches
VIP & Loyalty Programs: Boost retention and LTV
Affiliate Marketing: Pay-per-acquisition or rev-share
Cross-Selling: Link with sportsbook or fantasy platforms
Always follow bonus rules and prevent abuse.
Payment Options
Deposits:
VISA, Mastercard, ACH (Trustly, VIP Preferred)
PayPal, Skrill
Cryptocurrency deposits (Bitcoin, USDC if allowed)
Withdrawals:
ACH, PayPal, Play+ cards
Crypto (state-permitting)
Security:
AML/KYC checks, two-factor authentication, and fraud protection
Full compliance with U.S. online gambling regulations
Also Read: Online Casino Game Monetization Strategies
Marketing and Promotion Strategies
Marketing a USA online casino requires creativity and compliance due to strict advertising rules. Focus on digital channels that drive engagement and conversion.
Key Strategies
Affiliate Marketing: Partner with licensed casino affiliates for traffic and leads
SEO Content: Rank for long-tail keywords like “best online slots in Michigan”
Influencer & Streamer Campaigns: Use gaming influencers on Twitch or Kick (state-compliant only)
Email & Push Notifications: Personalized offers and retention boosts
Bonuses & Free Spins: Welcome packages, reloads, and cashback offers
Loyalty & VIP Programs: Reward repeat players with perks and exclusive access
Always include responsible gambling tools and follow state-specific promotional rules.
Risk Management & Responsible Gambling
Running a compliant online casino in the USA requires strong risk controls and player protection systems. Regulatory bodies enforce strict rules around AML, fraud prevention, and responsible gambling tools.
Risk Management
AML/KYC Verification: Use providers like Onfido or Jumio
Fraud Detection: Monitor suspicious activity, chargebacks, and bonus abuse
Geolocation Security: Block access from restricted states using certified tools
Two-Factor Authentication: Enhance user account security
Responsible Gambling
Self-Exclusion & Limits: Deposit, wager, and session limits
Real-Time Monitoring: AI tools to detect problem behavior
Help Resources: Links to NCPG, GamTalk, and helplines
Compliance Audits: Regular checks for fair play and RG policy updates
Promoting safe play not only ensures legal compliance but also builds player trust and platform credibility.
Conclusion
Launching a compliant, profitable online casino USA business is not a side hustle it’s a capital-intensive, highly regulated venture. However, with the right legal roadmap, a reliable casino game development company, and a customer-first mindset, you can set up a casino platform USA that scales quickly across newly regulated states. Partnering with an experienced development team ensures your platform meets compliance standards, integrates high-quality games, and delivers a seamless player experience from day one.
FAQ's
Is online casino legal in every U.S. state?
No. As of June 2025, only NJ, PA, MI, WV, CT and DE offer full iGaming. Other states have pending bills.
How much does a USA online casino license cost?
To start legally, you must obtain a license from a state where online gambling is regulated, such as Sikkim or Nagaland. This includes meeting technical, financial, and ethical requirements outlined under Indian gambling laws.
How long before I can start accepting wagers?
Well-funded teams often go live in 9–12 months, assuming no tech overhauls and smooth state inspections.
Can I accept cryptocurrency deposits?
Yes, but only via licensed custodians and with strict AML/KYC procedures.
Do I need a land-based partner?
In most states, yes. NJ and PA require a market-access partnership; MI allows either tribal or commercial tie-ups.
Can SDLC CORP handle end-to-end development?
Yes, SDLC CORP handles end-to-end development, from concept to deployment. We cover design, coding, testing, and post-launch support for complete project delivery.
