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States without online games will lose 'billions in tax revenue' – The Nevada Independent

Expanding legal online casinos to additional states could generate over $30 billion in annual revenue and $6.35 billion in tax revenue, according to study commissioned by gaming equipment provider and developer Light & Wonder There is a possibility.

Produced by VIXIO GamblingCompliance, the report looks at the potential financial consequences if internet gaming (called iGaming) were legal in the 42 states that currently allow land-based casinos, mobile sports betting, or both. I checked. Currently, only online poker is allowed in Nevada.

$6.35 billion in tax revenue is based on a hypothetical new state tax rate of 20%. Higher than Nevada’s 6.75%, Michigan’s tax rate is 19%, while Pennsylvania’s tax rate for online slots is lower than 54%.

VIXIO produced the forecast independently from Light & Wonder, which changed its name from Scientific Games earlier this year. Online games include slot-themed games and traditional casino table games played on digital platforms.

Las Vegas-based Light & Wonder provides online gaming platforms, gaming content, and integrated systems of traditional casino games and digital products.

In the report, VIXIO’s authors say the projected tax revenue reflects a maturing iGaming market.

The expansion of legal online casino games will allow states to raise tax revenues and tap into the illegal offshore internet gaming market, said Howard Glaser, global head of government affairs at Wright & Wonder, in a statement. said it would be

“States have billions of dollars of tax revenue left on the table that can fund a variety of public programs and services without resorting to extensive taxes,” Glazer said.

Six states have legalized online casino games: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania and West Virginia.

Last year, the Nevada Gaming Control Board postponed a scheduled workshop hearing to discuss potential regulatory changes that would allow the state to offer full online casino gaming. The hearing was never rescheduled.

Legal iGaming in these six states will generate $3.71 billion in gross revenue and $970 million in gaming taxes in 2021, according to the American Gaming Association. By comparison, sports betting in 30 states was $4.29 billion, with just $560 million in taxes.

VIXIO’s authors highlighted Michigan as a state where the regulated iGaming market is maturing very quickly and can provide “heavy taxes” in just a few months. VIXIO said the operator’s “appropriate marketing and product investment” and the promotion of iGaming to sports bettors helped Michigan launch in 2021.

Light & Wonder employees will celebrate the game console company’s name change from Scientific Games on Tuesday, March 1, 2022. (courtesy photo)

Five states are considering iGaming legislation this year: New York, Iowa, Illinois, Indiana and Kentucky.

In a statement provided by Light & Wonder, Indiana Republican Senator John Ford, President of the National Council of Legislators from Gaming States (NCLGS), said: broader demographics, and to be a meaningful source of state tax revenue. ”

There is currently no expansion of Internet gaming other than online poker in Nevada. There is not a unanimous consensus within the gaming community on adding an online casino.

Nevada legalized internet poker in 2013, but there is only one active site operated by Caesars Entertainment and based on the World Series of Poker.

A year ago, Station Casinos, an operating subsidiary of Red Rock Resorts, was first considered by the governor’s Gaming Policy Committee and was the first of large and small gaming operators to oppose expanding online regulation unless it was finally approved by the state legislature. headed the delegation.

Two months later, in October, MGM Resorts CEO Bill Hornbuckle said the Nevada gaming industry was “missing a significant opportunity for growth” amid reluctance to legalize online casino gaming. said. However, he said, “there are a lot of people in this state who own a lot of brick-and-mortar stores” and the internet.He doesn’t like legalizing casino gaming.

Speaking at a panel discussion at Indyfest, Hornbuckle said, “Given what the opportunity will be like, I’m looking forward to talking more about it all. Nevada Independent Annual conference focused on political and policy issues. “It can be important not just state-wise, but industry-wide, country-wide, and potentially even globally.”