The US iGaming industry earns a lot, even with just a few states offering iGaming. There is a large untapped opportunity to generate more volume, and in turn, higher revenue and tax collection from the government. The latest report from Vixio, commissioned by Light & Wonder, reveals the potential of a larger gaming market across the country. Light & Wonder is a US gambling products provider, formerly known as Scientific Games Corporation.
There are quite a lot of gambling product providers and operators who are interested in seeing an expansion of iGaming throughout the country. These companies offer a large variety of products that cater to players who enjoy various casino games. You can find a few of them in these gambling reviews and find out the variety of products they offer.
Overview of the Current iGaming Markets in the US
Currently, iGaming is only legal in seven states: Connecticut, Delaware, Michigan, New Jersey, Rhode Island, Pennsylvania, and West Virginia. Meanwhile, Nevada offers online poker only. Even with so few states allowing online gaming, these markets were able to deliver $1.61 billion in tax revenue in 2023.
Why is this such a feat for the small market? The value is impressive because sports betting generated $2.06 billion in tax revenue in the same year. With only 7 iGaming markets, they were able to generate half of the tax revenue of sports betting. To compare, sports betting is legal in 29 states. Thus, the financial potential of expanding the online gambling market in the country is greater than some realize.
The decision to legalize iGaming lies on the legislative bodies of each state. With a gross revenue of $66.66 billion in 2023, it is surprising that there is very little noise in terms of market expansion in other states. Even sportsbook software companies include iGaming products in their portfolios. Bookies all over recognize the popularity of iGaming products like casino card games and slots. So when they create their sportsbooks with their bookie software, they automatically add iGaming to their portfolio.
The Potential for the US iGaming Industry
According to the report from Vixio, legalizing iGaming across other states can yield billions in annual tax revenue. Based on their estimates, if states that offer retail gaming, or online sports betting, or both, we can see up to $15 billion in tax revenue. This value will be seen if all 44 states would legalize iGaming.
As states seek new revenue sources, the iGaming sector presents a compelling opportunity for significant tax generation. It could even potentially surpass current sports betting revenues. This untapped market could provide a crucial boost to state and tribal government budgets in the coming years. Therefore, when you explore the idea of getting into the sports betting industry, consider adding iGaming into the mix. This video on how to become a bookie will help you offer both sports betting, and online gambling quite easily.
Access Complete Gambling Software for Bookies with Bwager. Get More Information Here!
