New Independent VIXIO GamblingCompliance Report Commissioned by Light & Wonder Estimates States Could Generate $6.35 Billion in Annual Tax Revenue from Legal U.S. iGaming
August 02 2022 - 9:13AM
Business Wire
State Tax Revenue from iGaming Is Already
Approaching Two Times that of Sports Betting
Light & Wonder, Inc. (NASDAQ: LNW) (“Light & Wonder,”
“L&W” or the “Company”) today announced the release of an
independent report, “U.S. iGaming State Tax Revenue Potential,”
which was created by VIXIO GamblingCompliance at the Company’s
request. The independent, first-of-its-kind report forecasts
state-by-state projections of potential iGaming tax revenue in the
United States. According to the report, states are projected to
realize $6.35 billion in annual tax revenue from the adoption of
iGaming. These forecasts were developed by VIXIO independent of the
Company.
VIXIO’s report provides forecasts for the potential tax revenue
that state governments could conservatively expect to earn if
internet gaming, or iGaming, were legalized in each state that
currently has either legal land-based casino gaming or online
sports betting, or both. iGaming includes the operation of
casino-style games such as slots and table games, offered via
digital platforms through players’ own devices. While sports
betting involves betting on real-world sporting events either in
retail locations or through mobile devices, iGaming is completely
an online platform.
“VIXIO’s report demonstrates that states are leaving billions of
dollars in tax revenue on the table which could fund a variety of
public programs and services without resorting to broad based
taxes,” said Howard Glaser, Global Head of Government Affairs of
Light & Wonder. “The dozens of states that already have
land-based casino gaming merely have to turn on the digital channel
to realize tax revenues which are otherwise being siphoned off by
the prevalence of illegal off-shore internet gaming.”
As detailed in the report, if iGaming is legalized in all 42
states that currently allow land-based casinos or mobile sports
betting, the potential size of the U.S. iGaming market alone could
total over $30 billion. VIXIO estimates this could translate to a
combined $6.35 billion in annual state tax revenue, assuming a 20
percent tax rate in newly authorized states. According to the
American Gaming Association (AGA), the six states in which iGaming
is currently legal generated $970 million in gaming tax revenue in
2021, compared with $560 million generated in the 30 states with
sports betting. The states in which iGaming is currently authorized
are Connecticut, Delaware, Michigan, New Jersey, Pennsylvania and
West Virginia.
New York Senator Joseph Addabbo, Chair of the NY State Senate
Racing, Gaming and Wagering Committee said, “New York is surrounded
by iGaming states, namely New Jersey, Pennsylvania and Connecticut,
which are witnessing hundreds of millions in annual revenue from
iGaming. Those states have proven the model works and that iGaming
can complement land-based casinos and ensure protections for
players. When implemented safely and credibly, New York will also
witness significant increases in revenue and educational funds from
iGaming, while improving programs addressing gambling addiction. It
makes no sense for New York to lose that revenue to neighboring
states and the illegal offshore market.”
Indiana Senator Jon Ford, recently installed President of the
National Council of Legislators from Gaming States (NCLGS) said,
“Indiana prides itself on taking a thoughtful, measured approach to
gaming policy. With that in mind, we certainly recognize that
iGaming, when structured properly, has the potential to attract a
broader demographic, and to become a meaningful source of state tax
revenue.”
The independent report can be viewed or downloaded from the
Light & Wonder website here.
About Light & Wonder, Inc.
Light & Wonder, Inc. (formerly known as Scientific Games
Corporation), is the global leader in cross-platform games and
entertainment. The Company brings together 5,000 employees from six
continents to connect content between land-based and digital
channels with unmatched technology and distribution. Guided by a
culture that values daring teamwork and creativity, the Company
builds new worlds of play, developing game experiences loved by
players around the globe. Its OpenGaming™ platform powers the
largest digital-gaming network in the industry. The Company is
committed to the highest standards of integrity, from promoting
player responsibility to implementing sustainable practices. To
learn more, visit lnw.com.
About VIXIO GamblingCompliance
VIXIO GamblingCompliance is the leading provider of independent
legal, regulatory and business intelligence to the global gaming
industry, based in London, Washington D.C., and Taipei. Through its
platform and customized research solutions, VIXIO offers market
participants, regulators, governments, and investors easily
accessible and up-to-date information on market realities and a
reliable and independent service to monitor legislative and
regulatory developments.
Find out more at VIXIO.com/gamblingcompliance.
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version on businesswire.com: https://www.businesswire.com/news/home/20220802005703/en/
Investor Inquiries Jim Bombassei, Senior Vice President
of Investor Relations jbombassei@lnw.com
Media Inquiries media@lnw.com
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