Online gaming expansion prospects appear limited for 2025, with only a handful of states potentially considering iGaming legislation, according to Deutsche Bank analyst Carlo Santarelli in a new 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 - Santarelli believes only Ohio and Maryland have realistic chances of approval.

New York and Illinois, despite being the largest potential markets under consideration, face the slimmest odds of success. Wyoming, which recently filed iGaming legislation, would have minimal impact due to its small population.

For sports betting, Texas remains crucial but faces uncertainty until potentially 2027 if not approved this year. California and Florida present unique challenges, requiring tribal gaming partnerships that may prove commercially unfavorable, similar to New York's challenging profit environment.

DraftKings' performance in 2025 will likely depend more on meeting current earnings and revenue targets than new state legislation. 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 ability to meet 2025 guidance will be critical for DraftKings, particularly regarding their $1.4 billion adjusted EBITDA target for 2026. Failure to meet these targets could significantly impact investor confidence, especially given current market valuations.

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