Illegal online gambling is estimated to bring in over $400 billion per year, with states losing around $4 billion in tax money. A letter, signed by attorneys general from several states and US territories, has called on the Department of Justice (DOJ) to be decisive in dealing with unregulated operators.
Key Takeaways
- Nevada's attorney general and other state leaders are pressing the DOJ to crack down on illegal online gambling worth over $400 billion annually.
- Illegal gambling operators are estimated to cost states up to $4 billion in lost tax revenue each year.
- Las Vegas visitor traffic, hotel occupancy, and convention attendance have declined despite strong overall gambling industry revenue.
In his own letter to the DOJ, Nevada Attorney General Aaron Ford warned that illegal internet gaming erodes regulatory protections to safeguard consumers and support fair economic practices. The warning letter called for denying access to sites under the Unlawful Internet Gambling Enforcement Act (UIGEA), domain and server seizures, and cooperation with banks to prevent money transmission.
The American Gaming Association (AGA) revealed that about 40% of the US sports wagering industry is held by unlawful operators. AGA President and CEO Bill Miller emphasized that fighting against the issues needs collaboration between law enforcers, regulators, licensed operators, and policymakers.
Sustainability of Nevada's licensed gaming business is central, with 2024 industry economic impacts estimated by the Las Vegas Convention and Visitors Authority to be worth $87.7 billion. Yet LVCVA figures also showed reductions in hotel room bookings, convention attendees, and passenger traffic via Harry Reid International Airport from 2024 levels.
Visitor declines add pressure to Las Vegas casino industry
Las Vegas experienced 3.1 million visitors in June, 11.3% fewer visitors than the same period in 2024, as reported by the LVCVA. This has helped create operational shifts, like Golden Gate's move to eliminate live table gaming.
According to analysts, rising expenses, changing consumer trends, and generational changes are causes. Conservative commentator Robby Starbuck observed that younger adults now prefer internet wagering over casino gaming, and internet gambling in the US was worth an estimated $12.68 billion in 2024.
Shifts in alcohol consumption patterns are also a factor. Studies show that over one-third of adults under 35 now abstain from drinking.
