written and last updated by
Sam Smith at
12 Apr 2024
Journalist, Editorial Department
The consulting firm Analysis Group, with support from the Alliance for Sports Betting, has conducted a study titled "Potential Economic Impact of Legalizing the iGaming Sector on Casino Revenues in Five States." Analysts concluded that a regulated online gaming industry would slightly boost the profits of brick-and-mortar casinos, while also leading to increased tax revenues.
According to Analysis Group, if the iGaming sector is legalized in New York, the state could generate $18 billion (1.67 trillion rubles) in revenue over four years. In comparison, a regulated online casino market in Illinois could expect to see $9.2 billion (854.7 billion rubles). For the other three states examined, Maryland could potentially earn $5.5 billion (510.95 billion rubles) over the same period, while Virginia might see $5.4 billion (501.66 billion rubles). Louisiana has the most modest forecast, with an estimated $3.9 billion (362.3 billion rubles).
The authors of the study based their estimates on the impact of the iGaming sector in six U.S. states where online gambling is legal. They also considered data on sports betting and consumer behavior. The aim of the research was to understand how the iGaming sector interacts with the traditional casino market.
The recent wave of legalization for online sports betting in the U.S. has begun to slow, with a growing focus on the regulatory opportunities within the iGaming sector. The Analysis Group report is particularly relevant in this context, especially amid ongoing debates in the U.S. regarding the potential encroachment of online platforms on physical establishments. Additionally, this and other studies challenge the notion that online casinos have a detrimental effect on traditional ones.
New York state legislators—Senator Joseph Addabbo and Assemblyman Jay Gary Pretlow—have been actively lobbying for the legalization of iGaming in New York. They predict that online casino revenues could reach $1 billion (92.9 billion rubles) annually, surpassing the figures for the mobile sports betting market. However, the proposal was not included in the new budget.
It is also worth noting that efforts to legalize casinos in Texas are once again underway.
