The American Gambling Association praise the upward trend of online gambling and its effects on the US Market

The CEO of the American Gambling Association (AGA), Bill Miller, has praised the industry’s rapid comeback following the ravages of the Covid-19 pandemic, but has said that there remain significant issues to overcome.

While gambling revenues topped a staggering $53 billion in 2021, the industry still has to deal with the problems of illegal gambling as well as the spiraling inflation figures across the country. Here are the key themes that Miller touched upon.

Record growth in US gambling

Since the repeal of the Professional and Amateur Sports Protection Act, online sports betting has become widespread across the US. The gross gambling revenue from sports betting enjoyed a 366% increase in 2021 compared to 2019, and much of the $4.3 billion earned will have been taken by football bookmakers capitalizing on the popularity of NFL betting.

With just six states enjoying legal casino gaming compared to 31 for sports betting, things have been slower for iGaming, yet casino gaming still managed to bring in $3.7 billion in revenues.

Bouncing back from the pandemic

While year one of legal sports betting brought impressive growth, it was nearly obliterated by the pandemic. Hundreds of casinos were shut down across the US and the AGA successfully lobbied for government relief packages to include gaming. Thankfully, this meant that casinos could successfully reopen once the pandemic began to abate and there has been a notable hunger among younger customers to enjoy gambling in all of its forms.

Tackling problem gambling

Miller noted that the industry is having to work hard with regulators to ensure that its advertising is responsible in its message. With campaigns asking that players ‘Have a game plan, bet responsibly’, it’s hoped that it will provide a safer market for US bettors.

Fighting illegal operators

Gambling has been moving from an illegal to a legal market in the US, but there is still around $300 billion being spent at illegal operators. This works out at around $15 billion in lost revenues which equates to one-third of the regulated gaming market in 2021. As such, there are hopes that tougher regulation can be put in place to counter this and such a move could bring in about $4 billion in lost taxes.

Maintaining steady growth

While billions of dollars of revenues have been generated by the ongoing legalization of online gambling in the US, it has only been possible through intense spending. Many of the betting sites with enhanced offers will have to spend huge amounts of money promoting their deals, and there are calls for regulators to ensure that such bonuses have clear terms and conditions.

Such an outlay comes at a time where even the best new bookmakers are having to deal with tricky financial conditions. With record inflation causing the Fed to raise interest rates, it’s going to be interesting to see how the industry will tackle the latest challenges.