Online Casinos Generate $2.1B in State Tax Revenue While Sports Betting Apps Get Outplayed
While lawmakers saw sports betting as the golden ticket, slot machines on your phone are proving far more lucrative. Seven states with legalized online casinos collected $2.1B in tax revenue last year, while the 30 states offering sports betting apps scraped together just $2.9B despite far wider adoption. With budgets tightening, more states are now eyeing casino apps as the real win.
- Pennsylvania pulled in $1.05B from online casino taxes, versus just $188M from sportsbook apps in 2024 — even though both were legalized in 2017.
- The gap exists because online slots deliver spins in under two seconds compared to 15 seconds at physical machines, while sports bettors wait hours or days between wagers.
Follow the money: Illinois Democrat Ed Gonzales Jr. says states need their own revenue because they can’t count on Washington. Maine has a bill awaiting the governor’s signature, and Hawaii, Massachusetts, New York, and Ohio are weighing similar proposals. But the rush for new money comes with a warning as online casino games now make up 40% of calls to Pennsylvania’s problem gambling hotline, outpacing traditional casinos and sports betting. The upside is real, but so is the social cost.