The online gambling industry has become a lot more prominent in the past five-or-so years. The number of people who visit online casinos has drastically increased, and the market itself is now popular enough to generate billions of dollars annually. And yet, plenty of states have not embraced the industry. Our question is this; Are they missing out?
In the United States of America, only 6 states have legalized online casinos. Six out of fifty is not a great number. And yet, the US online casino industry is still incredibly profitable, generating millions on an annual basis. The following states are places where you can legally gamble online in the United States:
- New Jersey
- West Virginia
The most successful out of the six is New Jersey, which is also the first state that legalized online casinos. If we take a look at Jersey’s gambling industry, we can see that a huge chunk of the profit comes from online casinos. Which begs the question, are other states, like Washington, missing out on revenue?
Even with the industry only being legal in six states, the profitability of the US iGaming industry is incredible. Since the 2018 federal legalization of sports betting, online bookies have been busier than ever, with each state noting a significant rise in tax revenue from sportsbooks.
In a similar manner, bookies where online gambling is legal have noted a surge in tax revenue from the online gambling industry. In truth, even sweepstake or social casinos contribute quite heavily to a vibrant gambling industry. Some of the best US sweepstakes casinosmay be legal in places were online gambling is not, as they don’t actually require wagering. However, that is not always the case.
Knowing all of this, we must ask the question; is Washington missing out on taxes from online casinos? It is time we finally answered the question from the title.
The answer is emphatically and obviously, yes. States where online gambling is legal have shown a rise in annual tax revenue, and not an insignificant one. Most people in 2023 have access to the internet, and the means through which they can gamble. Not only that, but the desire to gamble has gone up as well.
People may be against the legalization of online casinos for moral reasons. However, most US citizens can still access online casinos through offshore accounts. The simple truth is that you can’t really prevent people from doing what they want. Just like the prohibition on alcohol failed, so too has the online gambling ban been unsuccessful.
The rise of online gambling has shown that there is a demand for these types of games. Those who believe in free market commerce should, therefore, be in favor of legalization. The industry generates billions annually, and tens, if not hundreds, of millions regionally. The state of Washington is, indeed, missing out on tax revenue from iGaming.