The outlook for iGaming legislation expansion in 2025 appears limited, according to Deutsche Bank analyst Carlo Santarelli's recent report on DraftKings (NASDAQ: DKNG).

Currently, only seven states permit online casinos: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. While six states may consider iGaming legislation in 2025 - New York, Ohio, Illinois, Indiana, Maine, and Maryland - only Ohio and Maryland show promising prospects for approval.

Key points from the analysis:

• New York and Illinois, despite being the largest potential markets, have the lowest probability of passing legislation
• Wyoming recently filed iGaming legislation but its small population makes it relatively insignificant for operators
• Texas sports betting legislation remains uncertain until potentially 2027
• California and Florida would require tribal gaming partnerships, which may be commercially unfavorable

For DraftKings specifically, meeting 2025 earnings and revenue targets is crucial given the limited legislative catalysts. The company's strong cash position and low debt could lead to strategic acquisitions to drive growth, following recent purchases of Simplebet Inc. and Jackpocket.

The analysis suggests 2025 may pass without any new states legalizing online gaming, making operator performance and execution increasingly important for industry growth.

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