Legal online casinos across the United States could generate $15 billion (€13.2 billion/£11.7 billion) in tax revenue for states and tribes.
The economic potential of online gambling in the United States is greater than most people imagine. According to a new report prepared by Vixio for Light & Wonder, legalizing online gambling in all remaining gambling states could generate billions of dollars in additional tax revenue annually for state and tribal governments.
According to data from the American Gaming Association, the U.S. commercial gambling industry is a huge market, with total revenues reaching $66.6 billion in 2023. In this industry, iGaming has tremendous potential.
Vixio's latest report "U.S. iGaming State Tax Revenue Potential August 2024" provides independent forecasts, predicting the potential tax revenue state governments can expect if every state that currently has legal land-based casino games, online sports betting, or both legalizes iGaming. This is an update to the initial report produced by Vixio and released by Light & Wonder in 2022, reflecting the latest revenue data reported by state governments and alternative assumptions about tax rates that future iGaming states might seek to apply.
Currently, online gambling is only legal in seven states: Connecticut, Delaware, Michigan, New Jersey, Rhode Island, Pennsylvania, and West Virginia. Nevada allows online poker but does not permit all casino-style games.
Seven online gambling states generate $1.6 billion in tax revenue
Despite its limited scale, online gaming still generated $1.61 billion in tax revenue last year.
This figure is particularly impressive compared to commercial sports betting. Last year, commercial sports betting was legal in 29 states and generated $2.06 billion in tax revenue.
Vixio predicts that if all 44 jurisdictions with some form of gambling legalize online gaming, state and local governments could receive up to $15 billion in total tax revenue annually.
