These forms of gambling are prominent among illegal gamblers as well, and they're costing states far more in tax revenue than sports betting - over $10 billion combined per the AGA report. Online slots and table games, as well as unregulated machines, account for over 90% the industry's total legal revenues. Per the AGA report, sports betting accounts for under 10% of the illegal total gambling market in the US. Other forms of gambling are costing states even more moneyĭespite its prominence on many commercials and billboards, many gamblers aren't betting on sports. If an economic downturn does come, and if states raise taxes down the road to make up the revenue shortfall, illegal sports gambling could be among the reasons why. States lost nearly a third of total tax revenues during the Great Recession, per an Indiana Business Review analysis. If the US enters a recession, however - as many experts expect it to in 2023 - state governments might see their tax revenues stall. New York state for instance, is on track to collect over $650 million dollars in tax revenue from sports betting this year, per one projection. Legalization has been a boon for states' tax coffers, and is among the reasons many states' tax revenues have fully recovered from a pandemic dip. It's legal, but not yet operational, in five others. As of November, it's legal to bet on sports in 31 states plus D.C. Legal sports betting has surged in the US since the Supreme Court paved the way for it in 2018. Illegal sports betting is costing them millions in tax revenue - an estimated $700 million in total revenue per year, per the AGA report. These operators tend to be online sportsbooks based in other countries.įor state governments across the country, this isn't just a legal problem. had legalized sports betting in some form, either online, in-person, or both.īut the report also found 49% of sports bettors have placed at least one bet with an illegal operator over the past year - 15% did so for all their bets - and estimated these operators account for nearly 40% of the US sports betting market.

Illicit sports betting - and illegal gambling more broadly - is costing states millions in tax revenue, and someday, taxpayers could be called upon to foot part of the bill.Īmericans are projected to place $100 billion in legal sports bets this year through platforms like DraftKings, FanDuel, and BetMGM, according to a November American Gaming Association report, which included a September survey of over 5,200 US adults.

Millions of Americans placed bets on the World Cup over the past month, but many likely did so illegally. Account icon An icon in the shape of a person's head and shoulders.

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