WASHINGTON, D.C. (Aug. 4, 2022) – States that have not legalized online casino-style gaming are missing out in billions of dollars in tax revenue that could fund much-needed infrastructure upgrades and services, including schools, hospitals and public safety.
A recent report by iDEA Growth member Light & Wonder found that 42 states that allow legal, land-based casino gaming and/or online sports betting have the potential to earn $6.35 billion in tax revenues from legalized iGaming. The U.S. iGaming State Tax Revenue Potential report, released Tuesday, defines iGaming as virtual casino-style games.
“Every year that passes without a state embracing the opportunity to build its financial resources by legalizing iGaming is another year its residents miss out on better roads, education, police and fire services and health care,” said iDEA Growth Founder and General Counsel Jeff Ifrah. “At the same time, these states are allowing much-needed resources to flow freely to illegal, offshore gaming sites that have no regulations to protect against such things as underage gambling, fraud and deceptive advertising practices.”
The report forecasts potential annual tax revenues for each of the 42 states, based on the revenues generated by the six states that allow iGaming, as well as Nevada, which allows online poker. The forecast, developed by VIXIO, is generated on an estimated 20% tax applied to the iGaming operators’ gross gaming revenue. For example:
- Indiana, which has legislation pending to legalize iGaming, stands to earn nearly $145 million in tax revenue.
- Colorado could see about $127 million in iGaming tax revenue.
- New York has the potential to generate about $428 million in tax revenue.
“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 Light & Wonder Global Head of Government Affairs of Light & Wonder Howard Glaser. “The dozens of states that already have land-based casino gaming merely have to turn on the digital channel to realize tax revenues which are otherwise being siphoned off by the prevalence of illegal off-shore Internet gaming.”
iDEA Growth and its members are united in commitment to responsible gaming, which includes supporting states in the effort to realize the beneficial economic impacts of regulated, legalized iGaming. The report is another tool lawmakers can use to help their communities earn hundreds of millions of dollars each year by allowing regulated iGaming.
About iDEA Growth
iDEA Growth (iDevelopment and Economic Association) is a 501(c)(6) association which seeks to grow jobs and expand the online interactive gaming business in the United States through advocacy and education. We represent all sectors involved in the growing industry of internet gaming and entertainment, including operations, development, technology, marketing, payment processing, and law.