According to an independent report, US states are expected to realize $6.35 billion in annual tax revenues from the adoption of iGaming.
The report, entitled “US iGaming State Tax Revenue Potential,and created by VIXIO GamblingCompliance at the request of Light & Wonder, Inc. (NASDAQ: LNW), provides predictions for the potential tax revenue governments could conservatively expect if internet gaming, or iGaming, were legalized in every state that currently has either legal land-based casino gaming or online sports betting, or both.
iGaming involves the exploitation of casino-style games such as slots and table games, offered through digital platforms through the players’ own devices. While sports betting involves betting on real sporting events in retail locations or via mobile devices, iGaming is entirely an online platform.
As explained in the report, if iGaming is legalized in all 42 states that currently allow land-based casinos or mobile sports betting, the potential size of the US iGaming market alone could exceed $30 billion. VIXIO estimates this could translate into combined annual state tax revenues of $6.35 billion, assuming a 20 percent tax rate in newly authorized states.
According to the American Gaming Association (AGA), the six states where iGaming is currently legal, Connecticut, Delaware, Michigan, New Jersey, Pennsylvania and West Virginia, generated $970 million in gambling tax revenue in 2021, compared to $560 million generated in the 30th. states with sports betting.
Now the United States has the opportunity to increase positions in the global iGaming industry given the change of laws. The US continues to break national records and we can expect the growth of the iGaming market to continue at a rapid pace in 2022 and beyond. Europe has more advanced regulations from all continents. The main players in the market are France, Germany and the United Kingdom, but other countries such as Sweden have several well-established online platforms, for example the one you can find at https://casinoutanspelpaus.io/.
At a global level, the market is showing signs of relentless growth as Fortune Business Insights forecasts estimate that global online gambling alone will be worth $158.2 billion by 2028 with a compound annual growth rate (CAGR) of 11.4% for the period . Mergers and acquisitions have been a major factor contributing to the industry’s value, and this trend will continue to play a role over the years.
Since 2020, online casinos have grown in growth and replaced brick-and-mortar locations. These websites make playing games easier as they are easily accessible from numerous technical devices, mainly desktops, smartphones and tablets. Most websites feature games such as poker, blackjack, slots, roulette and many other games, which you may not find in land-based casinos. Regardless, land-based casinos will continue to occupy a significant position within the industry.
The growth of the online market will also be accelerated by the use of online payments worldwide. These methods have become easier for online gamers as digital and mobile payments are more widely accepted. In addition, online payment services provide a safe and secure means of transactions, which has boosted its implementation in this industry. All of these improve the user experience as gamblers feel that the transaction process for depositing and withdrawing funds takes too long, and they want more payment options so as not to disrupt the game. Gamblers say that fast and seamless deposit and withdrawal experiences are an important part of their overall satisfaction and whether or not they will return in the future. Cryptocurrency wallets can help move further in this direction as security ensures the safety of the user experience and respect for laws.
In addition, virtual reality and web3 will trigger a new wave of improvement opportunities.
Furthermore, AI can help online site managers detect what players need at the right time, to provide real-time customer support through tools such as chats.
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