Illegal gambling has long been a thorn in the side of authorities in the United States, and a recent report has shed light on just how much it is costing the country. According to a study conducted by the American Gaming Association (AGA), illegal gambling activities in three key states – California, New York, and Florida – have cost the states a whopping $9.5 billion in revenue.
The report, titled “Illegal Gambling in the United States: An Analysis of the Scope, Scale and Socioeconomic Impacts,” highlights the extent of illegal gambling activities in the three states and the significant impact it is having on their economies. The study found that illegal gambling operations in California, New York, and Florida are siphoning off billions of dollars that could otherwise have been generated through legal gambling activities.
In California alone, illegal gambling is estimated to have cost the state $2.5 billion in revenue. The state has a long history of underground gambling operations, including illegal cardrooms and sports betting activities. These illicit activities not only deprive the state of much-needed revenue but also pose a significant risk to consumers, as they are often unregulated and can lead to potential fraud and money laundering.
New York and Florida have also been hit hard by illegal gambling activities, with estimated revenue losses of $3 billion and $4 billion, respectively. The states have seen a rise in illegal online sports betting and unlicensed casinos, which are flourishing due to lax enforcement and regulatory oversight.
The AGA report underscores the urgent need for states to crack down on illegal gambling activities and tighten regulations to protect consumers and legitimate businesses. The association has called on policymakers to take decisive action to combat illegal gambling and ensure a level playing field for all operators.
“States need to prioritize enforcement efforts and work with law enforcement agencies to shut down illegal gambling operations,” said Bill Miller, president and CEO of the AGA. “Illegal gambling not only hurts the economy but also undermines the integrity of the gaming industry and puts consumers at risk.”
The report also provides recommendations for states to address the issue, including increasing penalties for illegal gambling operators, boosting funding for enforcement agencies, and enhancing collaboration between state and federal authorities.
As the debate over legalizing sports betting continues to gain traction across the country, the AGA’s report serves as a timely reminder of the high stakes involved. With billions of dollars on the line, states cannot afford to turn a blind eye to illegal gambling activities that are costing them dearly. It is imperative for policymakers to take swift and decisive action to protect their economies and safeguard consumers from the harmful effects of illicit gambling.
