Gambling boom: Why the U.S. can’t ignore potential revenue

By Clinton Courier | May 30, 2023 |

Gambling boom: Why the U.S. can't ignore potential revenue

Internet gambling is becoming increasingly popular in the United States, but only six states are open to online casinos, prompting surprise and questions from the industry. While two-thirds of the country already offer legal sports betting, online gambling is limited to a few eastern states.

In Atlantic City at the East Coast Gaming Congress, industry leaders, and lawmakers discussed the issue and offered various explanations. One key question remains why 30 states allow sports betting, but only six of them allow online gambling?

Attorney Lloyd Levenson, who represents many casinos in Atlantic City, expressed his bewilderment, “It remains a mystery to me why we have about 30 states that have sports betting and only six that allow online casinos.”

It is also surprising that online gambling brings in far more money than sports betting. Generous bonuses greatly contribute to this. Many gamblers go crazy over the latest no deposit bonuses and dream of getting such a free gift. That’s why everyone rushes to register at the casino.

Sean Fluharty, the minority representative in the House of Delegates of Versta, Virginia, emphasized this fact. He noted that it takes three months of sports betting revenue in his state to match one month of online casino revenue. This indicates a huge profit potential that could be a compelling argument for the expansion of online gambling in many states.

Nevertheless, there are concerns about the possible cannibalization of revenue that might otherwise go to conventional casinos. New Jersey’s experience, however, suggests the opposite trend. In 2022, online gambling brought in $1.6 billion to the state, up 21 percent from a year earlier. Atlantic City’s nine casinos generated about $2.8 billion from live players, a 9% increase over the previous year. This data shows that online gambling is not only not hurting traditional casinos but is also boosting revenue.

Siobhan Lane, CEO of Gaming for Light & Wonder, expressed optimism about the future of online gambling. She said: “The gambling industry is still in its infancy in the United States. We know that’s going to change. The revenues generated in New Jersey, Pennsylvania, and Michigan are too great for other states to ignore for long.”

Thus, despite the current restrictions on Internet gambling, more and more states are realizing the potential of this industry and cannot ignore the potential revenues. The experience of New Jersey and other eastern states shows that Internet gambling can be profitable for both players and states. Perhaps in the near future, we will see an expansion of legalization and availability of Internet gambling across the country.