Study Makes Projection Of U.S. Online Casino Market
Light & Wonder, formerly Scientific Games Corporation, announced the release of an independent report on the potential for online casino gambling in the U.S.
The study was conducted by VIXIO GamblingCompliance and commissioned by the Las Vegas-based Light & Wonder.
The report forecasted the potential tax revenue that state governments could “conservatively” expect to earn if online casino gambling was legalized in each state that currently has either legal land-based casino gaming or online sports betting, or both.
“VIXIO’s report demonstrates that states are leaving billions of dollars in tax revenue on the table which could fund a variety of public programs and services without resorting to broad based taxes,” said Howard Glaser, Global Head of Government Affairs of Light & Wonder. “The dozens of states that already have land-based casino gaming merely have to turn on the digital channel to realize tax revenues.”
If online casino gambling was legalized in all 42 states that currently allow land-based casinos or mobile sports betting, the potential size of the U.S. online casino gambling market could reach $30 billion. The study estimated this could translate to a combined $6.35 billion in annual state tax revenue, assuming a 20 percent tax rate in states.
According to the American Gaming Association, the six states in which online casino is currently legal generated $970 million in gaming tax revenue in 2021. Those states are Connecticut, Delaware, Michigan, New Jersey, Pennsylvania and West Virginia.
One of the leading candidates to legalize online casino gambling in the next few years is New York, which has a growing online sports betting market.
“New York is surrounded by iGaming states, namely New Jersey, Pennsylvania and Connecticut, which are witnessing hundreds of millions in annual revenue from iGaming," said New York Senator Joseph Addabbo, Chair of the NY State Senate Racing, Gaming and Wagering Committee. “Those states have proven the model works and that iGaming can complement land-based casinos and ensure protections for players.”
Indiana is another potential entrant in online casino authorization.
“Indiana prides itself on taking a thoughtful, measured approach to gaming policy," Indiana Senator Jon Ford, President of the National Council of Legislators from Gaming States, said in a statement. "With that in mind, we certainly recognize that iGaming, when structured properly, has the potential to attract a broader demographic, and to become a meaningful source of state tax revenue.”