Although it is still considered a vice in some states, gambling has its benefits, plays its role, and pays its dues. So, when it comes to gambling in states where it has been legalized, the states’ treasuries win jackpots. A statement claims that the US legal gambling market is at $70 billion in tax revenue. In this article, we will explore that news, observe the legal tax revenue of states that have legalized gambling, and understand the types of gambling they allow to make as much money as they do. Let’s get right into it.
Is the USA Legal Gambling Market at $70 Billion in Tax Revenue or Not?
No, it is not. In October 2023, the American Gaming Association estimated the gaming industry to be $54.40 billion.
How Much Tax Revenue Does Gambling Produce in Legalized States?
States that have legalized gambling in the United States earn quite a lot in terms of tax revenue. Take Nevada, for instance. Nevada re-legalized gambling in 1931 and now offers several forms of gambling like pari-mutuel betting, sports and event betting, and other casino games. In May 2023, Nevada generated approximately $2.3 million in tax revenue from gambling.
Another state that is doing quite well in generating gambling tax revenue is New York. In New York’s fiscal year, which started from April 1st, 2022, to March 31st, 2023, Forbes reports that online gambling generated $727.4 million in tax revenues for the state, and this value is expected to climb higher in the coming years.
Other states perform impressively, too, but as much as these states have shown that there’s this much money to be earned, some U.S. states have kicked against legalizing gambling.
States that are Still Pending Gambling Legalization
Gambling is making waves in states where it has been legalized, but the following states are still holding out on legalizing it.
Utah
Utah is a highly religious Mormon state that institutes some of the most drastic laws against gambling. Utah does not support any form of gambling, whether private, public, or online, and it doesn’t have any land-based casinos, native or otherwise. Charity organizations are not allowed to use gambling as a form of fundraising, as even the commonest bingo hall is prohibited.
Hawaii
The hallmark of Hawaii is its familial nature and open arms towards families. Hawaii has a strong culture that gives great importance to tourism and family, and as a family holiday getaway, the state is quite protective of the activities that occur therein. As a way of protecting tourists and indigenes from the rowdy crowds that casinos and gambling always bring, Hawaii has refused to legalize gambling.
Alaska
Alaska makes its money from mining and tourism due to the state’s vast availability of mineral resources. There are no land-based casinos, no private or public gambling, and in some areas, there are bans on alcohol, too. So, there is only sometimes an opportunity for game-loving bettors to express themselves through poker and beer.
Tennessee
Tennessee sticks to gambling laws that go as far back as the 1800s. Currently, the only form of gambling tolerated in the state is online gambling. This decision could stem from Tennessee being a Bible-believing state that has churned out some of the best gospel artists ever.
New Hampshire
Bettors in New Hampshire have a saving grace: the state’s proximity to New York and Massachusetts. Betting or gambling is disallowed in this state, and anyone interested in spending a warm evening in a casino must travel the distance to nearby states.
Texas
The last state on this list is Texas, and although gambling hasn’t been legalized, Texas still allows its three native land-based casinos to operate thoroughly.
Why Isn’t Gambling Legalized in Texas?
Gambling isn’t yet legalized in Texas because the bill hasn’t passed the approval of the House yet. However, courtesy of the three land-based native casinos in Texas, the Kickapoo Lucky Eagle, Naskila, and Speaking Rock, Texan bettors still enjoy certain casino games. Since online gambling is still a no-no in the state, TX online casinos are still mainly offshore. In terms of legal revenue, gambling will contribute to the general USA legal gambling market as soon as it becomes legalized in Texas.
Frequently Asked Questions (FAQs)
What state has the lowest gambling tax?
That would be Nevada, with its 6.75% tax rate. Nevada, alongside Iowa and Indiana, has the lowest sports betting tax rate in the United States.
Do bettors have to pay tax on gambling winnings?
Yes, gambling winnings are fully taxable, and bettors always have to report their gambling income on their tax returns.
Is gambling a profitable stream of income for states?
Yes, it is. Not only does it contribute to the U.S. economy, but it also contributes to the lives of citizens. Gambling creates job opportunities for individuals, and over 1 million American citizens have gained employment from gambling establishments.
Conclusion
Gambling may have sponsored some forms of evil in its earliest years, and there’s no guarantee that disagreements would cease over this topic. One thing we can agree on, however, is that gambling is an exciting source of revenue that states should optimize. The data and facts in this article show how much money a state and the U.S. legal gambling market earn. And who knows, this information may spur on the states that have yet to legalize gambling.