It should come as no surprise that cash flows in the gaming industry are massive. The gaming industry for video games and casino/betting games are not the same, so to elaborate, I was referring to casino and betting games, though video games are also extremely prolific. Betting is a booming industry and it has been around for a really long time, so with a proper taxing system, betting can positively impact the economy of a state.
In the United States, the Supreme Court lifted the federal ban on betting which in term allows states to decide on their own, whether they want to legalize betting or not. So, does this mean that betting will become legal in all of the states? Not really, mainly because of the political climate. Some states are fine with betting being legal, others are more conservative when it comes to this topic. However, perhaps the economic benefits might tip these scales in favor of legalized betting, as it is a thought-provoking subject.
Betting Under The Table
Can states prevent users from using technology that enables them to bet even if betting is not legal in their country? The evidence suggests highly unlikely. According to some estimates, during Super Bowl 52 the number of funds used for betting in America was $4.76 billion. Only around 3 percent of that amount was gambled legally, which means massive funds were wagered using betting apps. In other words, if gambling was legal, the money would have stayed in the U.S economy.
Economic Growth Prognosis
One estimate suggests that without regulated sports betting market U.S is missing out on 2.9 billion dollar profit a year. Also, a 2017 report released by Oxford University states how sports betting would annually contribute between 11 and 14 billion to U.S. gross domestic product (GDP), depending on how betting is taxed and which states opt to legalize it. The report also states how legalizing sports betting would create around 125,000 to 152,000 employment opportunities, as well as between $6 billion and $7 billion in overall employee wages.
Mobile Betting Industry
If we examine the mobile betting industry in the United Kingdom, we can see that it has grown twice in size, and even more, within the past 5 years. Additionally, it is currently covering more than 60% of the betting market in the country. If betting in the U.S is legalized the addition of mobile betting to that market would ramp up the revenue by an additional 9 billion USD, according to the estimates of Eilers & Krejcik Gaming LLC.