Upcoming iGaming Rules & Laws May Redefine Online Casino Bonuses in the U.S.

As more states in the U.S explore the potential of legalizing online casino gaming, lawmakers are now considering a unified legislative framework. This could completely change the online gambling landscape. Let's take a look at how this legislation could impact the way casino bonuses are structured nationwide. 

This legislation recommends a tax rate ranging from 15% to 25%, suggests a ban on credit card deposits, and includes several consumer protection measures. While this proposed bill is not binding, it may become the default reference for states looking to join the iGaming movement. If this is adopted widely, it could completely change how online casinos operate, especially when it comes to how they attract and retain players through bonuses and promotions. 

Understanding the model legislation 

The next model of iGaming legislation is designed to provide a comprehensive roadmap for lawmakers in states that haven't yet legalized online casino gambling. This model bill attempts to replicate the successes and avoid the pitfalls of early adopters by offering clear and standardized regulatory guidance. 

Some of the key components of the bill include: 

• A proposed tax rate ranging from 15% to 25% of gross gaming revenue.

  The goal is to find a sweet spot — one that ensures the government collects meaningful revenue, while still making it worthwhile for operators to stay in the market. For example, a 20% tax could bring in millions each year for a single state, without pushing away businesses or turning off players.

• Ban on credit card deposits

  This controversial provision is meant to reduce problem gambling and prevent players from overspending. However, some experts like former New Jersey regulator David Rebuck argue that no data proves that credit cards cause more gambling harm than other deposit methods like debit or e-wallets.

• Stronger responsible gaming protections

  The bill recommends clear standards to help promote safer play — things like limits on advertising, caps on how much players can deposit, and built-in self-exclusion tools for those who need a break.

• No more sweepstakes casinos

  It also aims to close the loophole that allows sweepstakes-style casinos to operate without proper licenses. These platforms often bypass regulations in many states, and the bill would put a stop to that.

The economic stakes

The potential revenue from regulated iGaming is huge. According to the American Gaming Association (AGA), iGaming revenue in the U.S. reached $8.41 billion back in 2024. This shows a 28.7 percent increase year-over-year. As more states embraced digital gambling options. This contributed to a record $71.9 billion in total commercial gaming revenue.

Should larger states like California, Texas and New York adopt similar laws, they could generate $1 to $2.5 billion annually in tax revenue, depending on the rate chosen. This shows why lawmakers are so eager to formalize online casino regulation, but it also highlights why operators may begin re-evaluating their bonus strategies as tax burdens rise. 

How the credit card ban changes the game 

One of the most impactful and debated parts of the proposal is the ban on using credit cards for deposits. This move mirrors regulations in regions like the UK and even some Australian states. These bans were enacted to limit impulsive gambling behavior and ensure users are only spending money they have. 

In theory, banning credit cards helps gamblers avoid racking up debt while playing. However, in practice, it also increases friction in the deposit process, potentially reducing player conversion and retention. That may affect casual players the most and indirectly change the economics of customer acquisition, particularly through promotions. 

What this means for casino bonuses 

The online casino industry thrives on competition. Casino bonuses have always played a major role in this. Whether it's a no-deposit bonus or daily free spins on slot games, these promotions have been created to lure in new players and make sure they keep coming back. 

However, under the new legislative framework, operators may have less flexibility and financial incentive to offer large bonuses. This is because: 

• Higher taxes = smaller marketing budgets

  With tax rates of 15-25%, operators may need to cut spending in areas that don't immediately drive profitability. Bonuses and promotions are often seen as acquisition tools, not revenue generators. They could be among the first expenses trimmed.

• No credit card funding = lower average deposits

  If players are restricted to funding accounts with debit cards, e-wallets, or bank transfers, deposit amounts may decrease. This could lower the average lifetime value (LTV) per customer. Again, this could end up discouraging operators from front-loading heavy welcome bonuses.

• Tighter responsible gaming rules = less aggressive promotions

  Stricter advertising and bonus rules similar to those implemented in Ontario, Canada, could lead to more subdued promotions overall. Bonuses may shift from flashy one-time offers to ongoing rewards tied to responsible play. 

Why bonus hubs matter more than ever 

As the U.S. iGaming market shifts towards tighter regulation, players will need better tools to navigate increasingly complex and state-specific bonus environments. 

That's where platforms like SBR Casino Bonus Hub come into play. With changing tax structures and evolving bonus limitations, bonus hubs will be able to provide a centralized, up-to-date source for players to compare legal, safe and worthwhile offers across multiple licensed operators. 

Pennsylvania and Michigan 

Two of the most successful iGaming states, Pennsylvania and Michigan, show what's possible under aggressive tax structures. 

• Pennsylvania generated $1.075 billion in tax revenue in 2024 from iGaming, despite having some of the nation’s highest slot tax rates (54%).
• Michigan operators generated nearly $2 billion in iGaming revenue in 2024, contributing over $375 million in state taxes.

These both suggest that a strong iGaming performance is still possible even with higher tax burdens. Although it may come at the cost of promotional generosity and operator margins. 

A tighter and smarter iGaming future

As more U.S. states weigh the benefits of legalizing online casinos, the proposed model iGaming legislation provides a valuable blueprint. Its emphasis on responsible gambling, economic sustainability and regulatory clarity reflects lessons learned from earlier adopters. 

However, the consequences of online casino bonuses could be substantial. With tighter profit margins and stricter advertising rules, expect a shift toward smaller, loyalty-based rewards and fewer eye-popping sign-up deals. 

For players, the proposed legislation could result in a shift toward a more structured and possibly more restrictive online gambling experience. For operators, the new legal environment will demand smarter, more sustainable promotional strategies to stay competitive in an increasingly regulated marketplace.