Regarding gambling in the United States, the first thing that comes to mind is Nevada’s famous Las Vegas casinos. Many of them are among the top casino resorts in the world. However, recent years show a worrying trend: offline gambling revenues in Nevada are falling, and California seems to be following the same path. We break down what’s happening in the two states’ gambling industries and why the future of gambling in California is in question.
Different approaches to regulation – one outcome?
While Nevada is aggressively embracing online gambling, California remains tied to traditional forms of gambling. Nevada’s online betting revenue exceeded $4.4 billion in 2023, and poker remains a steady source of revenue. On the other hand, California continues to ban digital platforms, limiting the industry’s potential and losing potential revenue.
According to experts, California’s online casino ban creates a “shadow economy”: players either use illegal platforms or look for alternatives outside the state. The question is how long the government will be able to ignore reality.
A global trend that cannot be ignored
Internet gambling is actively using new technologies, which helps the market develop. By 2030, the global online gambling market is projected to grow to 150 billion dollars.
Modern online casinos are not limited by geography and actively work internationally. Our authors have studied the market and found several brands: 1xBet, Mostbet, and Pin Up. 1win is actively growing. Having studied the information here, we learned that the number of clients increased by 8.3% over the past year. Much of that growth came from India, Europe, and the US.
While New Jersey, Michigan, and Pennsylvania are already reaping the benefits of the digital revolution, California remains on the sidelines. In 2023 alone, New Jersey generated $1.92 billion in tax revenue from online gambling, while Pennsylvania generated $1.5 billion. Why is the largest U.S. state by population giving up this money?
Local casinos owned by Indian communities, which are influential political players, are not interested in legalizing online gambling. California has already rejected two bills that would have opened the door to digital platforms in 2022. Tribal casino lobbyists are convinced that online betting threatens their business, while cardrooms and racetracks fear declining profits. As a result, large betting companies willing to invest in the market are being left behind.
What’s in store for California?
While some states receive billions of dollars in taxes from online casinos and bookmakers, California continues to lose money. Players are either going underground or leaving for other states. A delay in legalization could cost the region’s economy dearly. The only question is whether California will realize this risk before its gambling industry begins to repeat Nevada’s fate.