As of December 31, 2021, 30 states, plus DC, had some form of legal sports betting. Only six states permitted online casinos with interactive slot machines and table games.<\/p>\n
Mobile sports betting had five times the number of legal jurisdictions compared with the number of iGaming states. But online casinos generated 86% of the amount of gross revenue that oddsmakers did.<\/p>\n
The 31 sport betting markets reported gross gaming revenue (GGR) of $4.33 billion. The six iGaming states tallied online GGR of $3.71 billion.<\/p>\n
\nConsidering iGaming is only legal in six states, and sports betting is legal in 30+ states, it signifies how profitable the iGaming market is, or can be (especially compared to sports betting),”<\/strong> Atlantic City-based gaming attorney C.J. Fisher, who co-chairs law firm Fox Rothschild’s Gaming Practice Group, told Casino.org<\/i>.<\/p>\n<\/blockquote>\n“In short, the comparison is compelling, and I think it supports further expansion of iGaming in the US,” Fisher added.<\/p>\n
Though life began to return to some sense of normal in 2021, and land-based casinos were largely open for business, iGaming revenue continued to flourish. GGR from regulated online casinos grew 139% from $1.55 billion in 2020.<\/p>\n
iGaming Tax Benefit<\/b><\/h2>\n
Not only does iGaming generate more gross revenue than sports betting, but states typically tax online casino revenue higher than sports betting.<\/p>\n
New Jersey, for instance, is one of the few states where both iGaming and sports betting (retail and mobile) are legal. The state levies an effective tax rate of 9.75% on brick-and-mortar sports betting GGR, and 14.25% on mobile. iGaming platforms are required to share 15% of their gross revenue with the state.<\/p>\n
\n
In 2021, New Jersey online casinos generated more than $205.2 million in tax revenue. Sportsbooks, both retail and online, delivered the state less than half of that at $102.6 million.<\/p>\n<\/div>\n
Pennsylvania, another state where online casinos and sports betting are legal, reported iGaming GGR of $1.11 billion in 2021. Sportsbooks kept $340.1 million of players’ bets.<\/p>\n
Pennsylvania taxes internet slot machines at 54% and interactive table game revenue at 16%. The state also levies one of the highest sports betting taxes. But at 36% it’s still substantially lower than online slots, which account for the lion’s share of the iGaming revenue.<\/p>\n
Banner Year<\/b><\/h2>\n
iGaming proves to be a substantial tax generator for states seeking new revenue. But the many states that only allow traditional casino gambling fared just fine last year, as pent-up demand fueled record play across the nation.<\/p>\n
The AGA reported in its “State of the States” that GGR from land-based casinos, video gaming terminals, iGaming, sports betting, and daily fantasy sports totaled a record $53.03 billion in 2021<\/a>. The new ceiling easily bested the US commercial gaming industry’s previous all-time mark of $43.65 billion, set in 2019.<\/strong><\/p>\nAGA President and CEO Bill Miller sees the industry only further growing.<\/p>\n
“Although 2021 was a tumultuous year, I’m confident it set a new baseline for gaming in the long-term as we provide consumers with cutting-edge entertainment and anticipate the full recovery of travel, events, and entertainment,” Miller concluded.<\/p>\n","protected":false},"excerpt":{"rendered":"
The American Gaming Association (AGA) recently released its annual “State of the States” report. The in-depth report, which provides a comprehensive overview of the US commercial casino industry, revealed that gaming has more than recovered from the COVID-19 pandemic. It also showed that for states seeking to substantially generate new tax streams through gaming expansion, […]<\/p>\n","protected":false},"author":25,"featured_media":213531,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,19],"tags":[],"acf":[],"yoast_head":"\n
American Gaming Association 'State of the States' Highlights iGaming<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n