Posted on: Might 14, 2022, 12:28h.
Final up to date on: Might 13, 2022, 06:30h.
The American Gaming Affiliation (AGA) just lately launched its annual “State of the States” report.
The in-depth report, which offers a complete overview of the US industrial on line casino trade, revealed that gaming has greater than recovered from the COVID-19 pandemic. It additionally confirmed that for states searching for to considerably generate new tax streams by gaming growth, iGaming simply tops sports activities betting.
As of December 31, 2021, 30 states, plus DC, had some type of authorized sports activities betting. Solely six states permitted on-line casinos with interactive slot machines and desk video games.
Whereas cell sports activities betting had 5 occasions the variety of authorized jurisdictions in contrast with the variety of iGaming states, on-line casinos generated 86% of the quantity of gross income that oddsmakers did.
The 31 sport betting markets reported gross gaming income (GGR) of $4.33 billion. The six iGaming states tallied on-line GGR of $3.71 billion.
Contemplating iGaming is barely authorized in six states, and sports activities betting is authorized in 30+ states, it signifies how worthwhile the iGaming market is, or might be (particularly in comparison with sports activities betting),” Atlantic Metropolis-based gaming legal professional C.J. Fisher, who co-chairs regulation agency Fox Rothschild’s Gaming Follow Group, instructed On line casino.org.
“Briefly, the comparability is compelling, and I believe it helps additional growth of iGaming within the US,” Fisher added.
Although life started to return to some sense of regular in 2021 and land-based casinos have been largely open for enterprise, iGaming income continued to flourish. GGR from regulated on-line casinos grew 139% from $1.55 billion in 2020.
iGaming Tax Profit
Not solely does iGaming generate extra gross income than sports activities betting, however states sometimes tax on-line on line casino income larger than sports activities betting.
New Jersey, as an illustration, is among the few states the place each iGaming and sports activities betting (retail and cell) are authorized. The state levies an efficient tax fee of 9.75% on brick-and-mortar sports activities betting GGR, and 14.25% on cell. iGaming platforms are required to share 15% of their gross income with the state.
In 2021, New Jersey on-line casinos generated greater than $205.2 million in tax income. Sportsbooks, each retail and on-line, delivered the state lower than half of that at $102.6 million.
Pennsylvania, one other state the place on-line casinos and sports activities betting are authorized, reported iGaming GGR of $1.11 billion in 2021. Sportsbooks saved $340.1 million of gamers’ bets.
Pennsylvania taxes web slot machines at 54% and interactive desk recreation income at 16%. The state additionally levies one of many highest sports activities betting taxes, however at 36% it’s nonetheless considerably decrease than on-line slots — which account for the lion’s share of the iGaming income.
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iGaming proves to be a considerable tax generator for states searching for new income. However the many states that solely permit conventional on line casino playing fared simply wonderful final yr, as pent-up demand fueled report play throughout the nation.
The AGA reported in its “State of the States” that GGR from land-based casinos, video gaming terminals, iGaming, sports activities betting, and every day fantasy sports activities totaled a report $53.03 billion in 2021. The brand new ceiling simply bested the US industrial gaming trade’s earlier all-time mark of $43.65 billion set in 2019.
AGA President and CEO Invoice Miller sees the trade solely additional rising.
“Though 2021 was a tumultuous yr, I’m assured it set a brand new baseline for gaming within the long-term as we offer customers with cutting-edge leisure and anticipate the total restoration of journey, occasions, and leisure,” Miller concluded.