Many policymakers, financial experts, and analysts have started to notice the potential online gambling has to generate significant tax revenues for the United States. According to a report by Vixio, which tracks developments in gambling legislation and its economic impact, the growth of online gambling in the US is also a promising new revenue stream. Let’s see how below.

Firstly, the online gambling industry in the US has been growing substantially recently due to changing consumer habits and advancements in the technologies behind it. As internet access has widened and with more people having access to smartphones, online gambling platforms have also adapted to create seamless user experiences across all devices.

There are now also many states like New Jersey that have legalized various forms of online gambling, such as online poker, sports betting, and slots. This approach has led to the state generating over $555 million in August alone, with online gambling contributing $198.4 million, setting a new monthly revenue record.

For players looking to enjoy their favorite gambling games, the classics are still a major draw at online casinos. This means whether you’re looking to play classics like roulette or blackjack online, or are after a new-age game crash game, new-age platforms like instant play and crypto casinos are growing highly popular. This is because they come with larger game libraries and a wealth of other perks like quicker registrations, faster payouts, cryptocurrency payments, and anonymous play.

According to the Vixio report, the success that early adopters have enjoyed from legalizing online gambling is serving as a model for other states to follow to capitalize on the growing popularity of the industry. Many of them are now realizing that legalizing online gambling can be a great way to increase their revenues without needing to impose any taxes on residents.

According to the Vixio report, these states can benefit immensely from online sports betting alone. Due to its massive growth, online sports betting can contribute billions of dollars annually in tax revenues if legalized nationwide. On the other hand, online poker, lotteries, and casinos are also estimated to potentially bring in between 15% and 20% of online gambling taxes when legalized.

There’s also an example cited in the report that shows how online gambling revenues in states where gambling is legal are used to fund critical state projects. Should more states do the same, iGaming could represent a steady stream of tax revenue that will allow them to allocate more resources to various public programs and stimulate local economies.

With clear regulations, local operators will also be able to introduce technological advancements that are crucial for making online gambling more secure and accessible. Allowing operators to invest heavily in creating platforms that can compete with international options.

There are already many technologies that upcoming operators in these states can invest in to offer world-class gambling services, such as robust cybersecurity solutions and reliable payment systems. These technologies play a crucial role in quelling many of the concerns that surround online gambling. All that’s needed now is for more states to get on board with making iGaming legal.