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In 2023, the entire gambling industry in the US generated up to $65.52 billion in revenue. Since states received the authority to create their own gambling laws, states that legalized gambling activities recorded big numbers in taxes paid from gambling revenue. However, amidst all the industry’s success, the potential of online gambling has still been largely untapped.

As states passed laws regulating lotteries, physical casinos, and sports betting, many states omitted legalizing online gambling in their jurisdictions. Nonetheless, in the few states that have regulated internet gaming, the revenue numbers have been impressive.

As far back as 2013, New Jersey and Delaware legalized online gambling in their states and they were the first in the country to do so. It’s been over a decade since they created their online gambling laws and only a few states have followed suit. Aside from the two pioneering states, only Connecticut, Michigan, Pennsylvania, Rhode Island, and West Virginia have legalized online gambling.

Online Gambling Revenue Has Paid States Billions in Taxes

Over time, a number of people have observed the gambling revenue landscape in the US and failed to understand why more states have not jumped on the iGaming train. For all the years that New Jersey has been allowing online gambling operations within its borders, over $7 billion has been generated in revenue. Out of this big revenue, at least a billion of it has been remitted to the state over time as tax.

According to the American Gaming Association, the few states that legalized iGaming in 2021 saw their online casinos generate $3.71 billion in revenue that year. The states received up to $970 million in tax remittance from digital casinos in 2021.

Based on the performance of online casinos in the few states where they are allowed to operate, it is clear that there is a lot of revenue left untapped in the rest of the country.

Casino executives who support the legalization of online gambling institutions have argued that the tax returns from online gambling activities are good for the state and its residents. When the state gets large payments from casinos, it can reduce the tax burden it places on individuals.

Factors Slowing Down iGaming Growth in the US

Unlike online casino gaming, online sports betting has seen great success in the US. 38 states have legalized sports betting, which is a huge improvement over the meager seven that have legalized online gambling.

One of the primary arguments pushed by the groups that oppose every online gambling bill is that it will become a menace that will build dangerous gambling addictions. It is supposed that online gambling is easy to access and will let people give in to their desires to place bets a lot easier. Thus, the gambling corporations and the state through tax would be getting richer at the expense of the people.

Another important factor against iGaming is that it will disrupt the present brick-and-mortar casino establishments. While the big casinos would still be able to attract their rich crowds, the smaller ones might lose many of their customers to the easy-to-access digital gambling options.

Upsurge in iGaming Activity Raises Optimism for Online Casinos

Estimations have suggested that in 2024, user penetration in the online gambling market will rise to 19.2%. Also, judging from how online sportsbooks have been performing in the US, we can predict that if more states accept online casinos, the numbers will go a lot higher. In the seven states where online gambling is legal, casinos have been raking in large amounts in monthly revenue.

The reason for this behavior is that the world is going digital, and people are shifting attention to their devices. This trend is also affecting the way punters choose to play their games.

Kristin Chute

Kristin Chute is a seasoned freelance writer who spent much of her childhood at the racetrack, getting an early education in betting. As a New England sports fan and hockey mom, she loves providing EatWatchGamble readers with engaging articles on sports betting and online gambling news.

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