Light & Wonder, formerly Scientific Games Corporation, has announced the release of an independent report on the potential of online casino gaming in the United States
The study was conducted by VIXIO GamblingCompliance and commissioned by Las Vegas-based Light & Wonder.
The report projected the potential tax revenue that state governments could “conservatively” expect to gain if online casino gambling were legalized in every state that currently has either legal land-based casino gambling or sports betting. online, or both.
“VIXIO’s report demonstrates that states are leaving billions of dollars in tax revenue on the table that could fund a variety of public programs and services without resorting to broad-based taxes,” said Howard Glaser, Global Business Leader Light & Wonder government agencies. “The dozens of states that already have land-based casino games need only activate the digital channel to realize tax revenue.”
If online casino gaming were legalized in the 42 states that currently allow land-based casinos or mobile sports betting, the potential size of the U.S. online casino gaming market could reach $30 billion. The study estimated that this could translate to combined annual tax revenue of $6.35 billion, assuming a 20% state tax rate.
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. These states are Connecticut, Delaware, Michigan, New Jersey, Pennsylvania and West Virginia.
One of the main candidates for the legalization of 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 have hundreds of millions in annual revenue from iGaming,” said New York Senator Joseph Addabbo, Chairman of the New York State Senate Committee on Racing, Gaming and Betting. “These states have proven that the model works and that iGaming can complement land-based casinos and provide player protection.”
Indiana is another potential entrant into online casino licensing.
“Indiana prides itself on taking a thoughtful and measured approach to gambling policy,” Indiana Sen. Jon Ford, chairman of the National Council of Gambling State Legislators, said in a statement. “With this in mind, we certainly recognize that iGaming, when properly structured, has the potential to appeal to a wider population and become a significant source of tax revenue for the state.