In recent years, more states have been debating the legalization of online casinos, with many representatives pointing out that the gambling industry is a revenue goldmine. States that have gone down this road are proof enough that the online casino industry is lucrative – after all, they have been funneling these funds into notable public projects. But how much do the top USA online casinos contribute to the economy? How much money does the gambling industry make? Who benefits from this revenue? We dive into this and more.

What Do the Numbers Show?

The easiest way to tell just how much an industry contributes to an economy is to follow the money. So, what do the figures show? We will go at this per year, relying on the reports from sources such as the American Gaming Association. The numbers are as follows:

• 2020: $34.93 billion.
• 2021: $41.71 billion.
• 2022: $53.44 billion.
• 2023: $66.65 billion.

As of November 2024, the yearly figure was $65.83 billion, a figure that is sure to be higher once the final tally is out. As such, the figure has just about doubled in just four years. Much of this growth owes to the increase in online casino games which offer variety, convenience, and affordability to players.

Where Is The Money Going?

The impact of the gambling industry revenue has been a hot topic, with most people questioning how much this industry contributes to the national economy. So, where is the impact?

Increased Economic Activity.

When people spend money on casinos and sports betting, the money does not just go to the casino operators and bookies. Instead, it spills over to the supporting industries, such as entertainment, hospitality, and transportation. Take the example of the casino business in Las Vegas. It also stimulates the fashion, hotel, and restaurant businesses that benefit from players seeking a break from the games. So, as much as direct spending in the casinos may be the focus, indirect spending is also a huge contributor to the economy. In fact, reports show that this indirect spending catapults the overall gambling-related economic activity to over $300 billion each year.

More Job Creation.

With the rising rates of unemployment in the US, it has become crucial for existing industries to create jobs for people. After all, the more people have access to disposable income, the more they can invest in the economy, propelling its growth. Along this line, the gambling industry creates over 1.8 million jobs in the country. Many of these people work directly in the casinos and with the bookies, such as the dealers, managers, security, accountants, and concierge. But many others work in related businesses which tie to the increased economic activity in the previous point.

For example, a casino may boost the business of surrounding hotels, which would, in turn, employ more people to account for the increased demand. In the same way, online casinos create jobs for people who can work in customer service, game development, and other sectors that support this industry. As a result of this job creation, estimates show that the gambling industry generates over $100 billion in wages.

Higher Tax Revenues.

States and local governments subject gambling operators to various taxes, including licensing fees and property taxes. At the same time, anyone who scores a gambling payout is subject to a federal income tax. As such, the total tax revenue from this industry is not just about the percentage of profits that operators pay to the government. It goes beyond this, which aids in boosting tax revenue.

Let’s use an example of 2022. In this year, the industry made about $60 billion and paid $11 billion in direct taxes. Yet the total tax revenue relating to gambling activities was a whopping $52.7 billion! So, where does this money go?

• Public services. The country needs dependable education, healthcare, and transport services as these relate to basic human needs. The more money that the government collects in taxes, the more that they can meet these needs to better the lives of their people.
• Public infrastructure. Public services rely on sound facilities, e.g., the healthcare industry relies on hospitals with adequate medication, licensed doctors and medical teams, etc. The taxes go into ensuring that these public spaces can meet the needs of the US citizens.

As a result, more states are angling for more casino business to match these tax interests.

Increased Local Development.

Have you ever noticed what happens when a casino starts operating in a region? Supporting businesses also set up shops, e.g., restaurants, hotels, bars, fashion stores, etc. This increased business results in more disposable income for the residents in the area, which results in economic growth. Soon enough, more public infrastructure starts popping up, from schools to roads to hospitals. And a town or city that was once dull comes to life. The same effect is evident with online casinos. While people may not see these casinos in the physical realm, they contribute to people’s financial well-being, and people invest this money in their local economies, fueling growth.

The gambling industry also invests a lot in corporate social responsibility by funneling funds to community projects that center on improving social services, which also has a positive impact on the US economy.