Why Gambling is a Lucrative Business in the USA?

Photo by Pixabay: https://www.pexels.com/photo/cards-casino-chance-chip-269630/

It really does not take a genius or a rocket scientist to realize that the gambling industry is a rather lucrative business in the USA.

Although the activity might still be rather controversial and split opinion across the entire nation, there have been a number of states which have decided to take advantage of the ruling by the Supreme Court back in 2018 following the case that New Jersey took to it.

As we know, the Federal Law that had once been in place had been vanquished and each region was given the opportunity to decide at the state level as to whether it wanted to permit iGaming and sports betting activities within its borders by introducing its own laws and regulations to ensure everyone who participates in the activity is protected at all times.

Of course, there have been a large number of states that have since acted upon the relaxation of the laws and have permitted gambling within their borders. Whilst there have been some that have resisted the urge or are still in the early stages of deciding whether to permit them, it is clear that those who have already decided to act have benefited from the decision financially.

How much is the gambling industry worth in the USA?

According to a recent report by the American Gaming Association (AGA), it was found that Americans have really embraced gambling in 2021, with findings revealing that a record $53 billion had been generated in revenue via the use of the casinos and gaming mobile apps that have been made available to use in the country.

When digging deeper into the figures to have been reported, it shows that revenue had increased by 21% on the previous annual record that had been set in 2019, whilst 23 of the 34 gaming jurisdictions that had allowed the activity to take place in 2021 had set their own individual full-year gaming revenue records.

These figures have clearly been impacted by some external influences that had happened previously, however it is also perhaps wise to take into account the fact that not all states permit every kind of gambling activity possible. Let’s not forget that some states only allow physical wagering and do not permit online betting, whilst others only allow a certain type of bet to be made.

Additionally, it is also important to recognize that the four most-populous states in America in 2021 did not even permit certain types of gaming. Both California (according to census information from 2020, a total of 39.5 million) and Texas (29.1 million) outlawed any wagering activity, whilst Florida (21.5 million) remains in limbo and New York (20.2 million) only recently permitted legal live online gambling at the beginning of 2022.

If you take into account those populations, and the number of revenue already generated by gambling, then it is rather easy to understand just how lucrative gambling is to the USA.

Which states are already providing a huge share of the US gambling revenue?

When taking a look at those states that provide the population within its borders with the opportunity to gamble, it is clear that there are three states that have really managed to take advantage of the relaxation of laws and the ability to introduce the popular pastime under their own regulations.

Nevada (3.1 million), New Jersey (9.2 million), and Pennsylvania (13 million) had all ranked at the top of the list when it comes down to the gross gaming revenue (GGR) generated from physical casinos by 2020, with each of these accounting for $7.87 billion, $2.81 billion, and $2.69 billion respectively of the total $29.98 billion generated nationwide.

Of course, it is only likely to be a lot higher since those figures were reported, especially as there is the possibility to access digital forms of gambling in certain states including the Pennsylvania online casinos that continue to provide residents of the state with the very best wagering activities to enjoy whenever they are located within the region’s borders.

These three states were also ranked in the top four for sports betting revenue, with Mississippi having joined Nevada and New Jersey in the top three between 2018 and 2019.

What benefits has the legalization of gambling provided certain states?   

Photo by Paul IJsendoorn: https://www.pexels.com/photo/paronama-photography-of-high-rise-buildings-444964/ To further highlight how lucrative the gambling industry is to the USA, it is certainly worth pointing out the many benefits that can be enjoyed by each of the states that have already made the decision to implement regulations to permit the activity.

For instance, many will instantly recognize that the biggest benefit to have been experienced will have been the money to have been generated through taxation. Of course, by legalizing wagering in some or all forms, states are able to increase the money that they each have coming through the coffers, which can then help them to improve certain things around the community.

An example could be in regard to the infrastructure of the state, with some potentially able to benefit the gambling industry, too. States that decide to invest in network infrastructure and provide better internet connections to their population could then have a significant impact on the number of people playing online casino games, thus generating even more money for both the industry and the USA.

Additionally, the legalization of gambling for certain states will have had an impact on the economy at a local and state level, in other ways compared to the increase in tax being generated. The arrival of gambling in some states will have meant that there will have been additional jobs created, thus reducing unemployment rates, therefore, giving residents the ability to spend more money.

Furthermore, the introduction of gambling could help to boost tourism within certain areas of the USA. Many would have initially focused on places such as, and Atlantic City, New Jersey, however with more options now available, tourism in certain regions Las Vegas, Nevada can be boosted, thus improving the economy even further as more and more money will be spent in different places nationwide.

Final Thoughts

It is clear to see just how lucrative of an industry gambling is to the USA, and why it has been an incredibly successful move for so many to have already taken advantage of it. However, this should only be the beginning, as the three most populous states (California, Texas, and Florida) could help to make gambling even more lucrative if they were to legalize it in the future!