Gambling Revenue and State Budgets

State budgets benefit from gambling revenues, but these revenues are largely insignificant. In the fiscal year 2015, overall state gambling revenues grew by about 2.0 percent, despite inflation. The states that have the highest dependence on gambling revenues include Rhode Island, West Virginia, and Nevada. Although gambling revenue per resident in different states varies considerably, each state has a small but significant percentage of its budget from gambling. In this article, we’ll examine how states make up for the small increase in overall gambling revenue.

For instance, gambling revenue increased by six percent over the last decade, but in the past year, this amount dropped by three percent, with only 18 states reporting a growth over the same period. This decline is in line with the trend in gambling revenues. The gambling industry isn’t a reliable source of revenue for states, as there are many costs associated with it. In addition, gaming revenues in Maryland have declined by 1.2 percent in real terms over the past year.

In fiscal year 2020, state and local governments collected an estimated $30 billion in gambling revenues. This money is only one-third of the overall gambling revenue, and does not include tribal casino revenues (although some states do collect those through revenue-sharing agreements). The revenue from lotteries and casinos was responsible for approximately two-thirds of total gambling revenues, while revenues from video gaming and pari-mutuel wagering made up less than a fourth of the total.

The growth in gambling revenues is largely due to the legalization of online gambling in the United States. The US gaming industry is also expanding in states that allow sports betting, but this is a relatively new industry. New Jersey and Pennsylvania are pursuing the legalization of online gambling, which should help the state’s overall gambling revenue. In the meantime, the US economy continues to benefit from the growth of the iGaming industry. While US gambling revenue is growing in the rest of the world, the industry has the potential to grow by another two hundred billion dollars per year.

State revenues generated by commercial casinos were less than $5.4 billion in fiscal 2015. Of the seventeen states that have commercial casinos, nine reported declines in gambling revenue. The largest declines were in Indiana and West Virginia, with 18.1% and 7.8%, respectively. The declines in these two states can be attributed to the fact that two casinos opened in Ohio during fiscal year 2012 and Indiana casinos located 25 to 50 miles away. However, Maryland and Delaware had the highest growth rates, with 17.1 percent growth and an overall tax revenue decrease of only 0.5 percent.

The American Gaming Association reported a record $53 billion in gambling revenue in 2021. This is up 21% from the previous year. The association executives called 2021 a “remarkable year”.