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States Stand to Earn Big From Online Gambling Taxes

September 14, 2021

The current trend to legalize online gambling in the United States continues. The states that continue to resist find themselves confronted with a new report from The Action Network. The report shows that states which fail to legalize online gambling could be losing millions each year.

At least six states are looking at some type of online gambling legislation in their 2021 late sessions. Others, like Louisiana, have already approved sports betting online. Those states are waiting for clarification on licensing and how revenues will be collected.

Other states still refuse to consider online gambling in any form. This includes Utah, a state that has a track record of gambling opposition. Utah frowns upon live gaming as well as the online variety. Lawmakers in Utah will soon have to convince the public that there is wisdom in bypassing all of the revenues that can be earned from online gambling.

According to the report from The Action Network, some states could collect as much as $300 million in taxes from online gambling providers and the individuals who play the games. Smaller states like Utah fall on the lower end of the scale. Their projections show expected revenues of over $1 million.

One also has to take into account that Utah has long been the home of the Latter Day Saints religious organization. A large number of Utah residents are Mormon. Their faith strictly prohibits gambling in its various forms. However, there are many other individuals in Utah that could be impacted by online gambling legislation.

Nevertheless, $1 million in tax revenue could be of great benefit to the state. Other states are also wrestling with the data provided by The Action Network.

Lawmakers are likely to use such data as they end 2021 with more efforts to legalize online casinos and online sportsbooks. The majority consensus seems to be that Americans want the freedom to gamble online from the comfort of their own home.


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