As I see it, the sports betting industry in the United States is booming, but online gambling has been slow to keep up with this trend.
Despite the fact that legal sports betting is now available in two-thirds of the country, only six states have legalized online casino gambling.
This has surprised industry executives and legislators who were hoping that the growth of sports betting would also lead to an increase in online casino wagering.
During the East Coast Gaming Congress in Atlantic City, experts shared various reasons why internet gambling has yet to expand beyond a few eastern states.
While New Jersey, Connecticut, Delaware, Michigan, Pennsylvania, and West Virginia have legalized internet gambling, Nevada only offers online poker and not casino games.
Despite the fact that 33 states and Washington, D.C. offer legal sports betting, the number of states legalizing online casino gambling is significantly lower.
This disparity is puzzling since online gambling brings in more revenue than sports betting.
In West Virginia, for instance, the revenue from online casino gambling is equivalent to three months of sports betting revenue.
However, some in the gambling industry and state houses remain skeptical about authorizing internet gambling, fearing that it will cannibalize revenue from brick-and-mortar casinos.
Nevertheless, states like New Jersey have proven that online gambling does not negatively affect in-person gambling.
In fact, New Jersey’s online gambling revenue increased by over 21% in 2022, bringing in $1.6 billion, while Atlantic City’s nine casinos won nearly $2.8 billion from in-person gamblers, up 9% from the previous year.
Indiana state Sen. Jon Ford shared that his state’s attempt to pass internet gambling this year was unsuccessful due to concerns that online gambling would reduce revenue from brick-and-mortar casinos. He plans to reintroduce the bill next year.
Meanwhile, many casino companies are reluctant to give a perceived foothold to companies “that they view as an existential threat.”
Panelists agreed that New York and Indiana are among the states most likely to legalize internet gambling within the next two years.
Despite resistance from Republican-controlled state legislatures, which are less likely to favor gambling, internet gambling may become more appealing to states as federal pandemic-related aid comes to a close, and states look for ways to avoid raising taxes.
I am optimistic about the future of internet gambling in the U.S., as the revenues generated in states like New Jersey, Pennsylvania, and Michigan are too great for other states to ignore for long.
However, it remains to be seen which states will be next to legalize online casino gambling.
About the author
