Posted on: November 6, 2023, 10:21h.
Last updated on: November 6, 2023, 10:44h.
The American Gaming Association Celebrates 10 Years of Online Casino Gaming in the US
The American Gaming Association (AGA) commemorates a decade since the debut of online casino gaming in the United States. According to the AGA, regulated iGaming has been on a positive growth trajectory, with iGaming operators generating a total gross gaming revenue (GGR) of $16.3 billion and contributing over $4 billion in tax payments.
Currently, seven states have legalized iGaming, namely New Jersey, Michigan, Pennsylvania, West Virginia, Connecticut, and Delaware. Rhode Island recently became the latest state to approve iGaming in 2023 and is expected to complete its pre-launch phase in Spring 2024.
The AGA highlights the substantial revenue of $16 billion, given that iGaming is only available to approximately 13% of the adult U.S. population.
Legal Versus Black Market
One of the main objectives of legalizing online casinos was to curb the black market, but this goal remains largely unmet. According to the AGA, Americans still engage in illegal wagering with unregulated operators, with a yearly estimated amount of $338 billion, due to the limited availability of legal options.
Pennsylvania leads the pack among iGaming states, generating $1.83 billion in tax revenue. New Jersey and Michigan closely follow, both surpassing $1.3 billion.
In 2023, iGaming states have achieved revenues of slightly over $3.9 billion, reflecting a year-over-year increase of 22.7%.
AGA Also Highlights Economic Impact of Casino Industry
The American Gaming Association recently released a study that emphasizes the significant economic activity generated by the casino gambling industry. The study reveals an annual economic impact of nearly $329 billion.
This study, the first released by the AGA since 2018, indicates that 2023 is on pace to exceed previous records.
“I think it speaks to the continuing popularity of casino gambling in the United States,” said David Schwartz, a gambling historian at the University of Nevada Las Vegas.
The AGA is looking forward to the 2024 legislative calendar in several states, anticipating the potential success of new iGaming bills. States such as New York, Illinois, Indiana, Kentucky, Maryland, and New Hampshire witnessed online gaming bills failing to pass in 2023.