Legalizing sports betting won’t just bring the law in line with American attitudes and desires – it will also deliver powerful economic benefits, possibly generating $8 billion in local taxes, creating hundreds of thousands of jobs, and adding $22.4 billion to the gross domestic product, according to new a comprehensive study on the economic impact of a legalized U.S. sports betting market.
Using a Convenient Availability-Base Tax Rate Scenario, key takeaways include:
- Total economic output, representing sales of businesses in the US, is expected to be $41.2 billion.
- Legal sports betting operations, including wages, salaries, benefits and tips, are expected to support $11.0 billion of total labor income.
- Total jobs supported, both direct, indirect and induced, is expected to be 216,671.
- Legal sports betting is expected to contribute $22.4 billion to US gross domestic product.
- Fiscal impacts, consisting of state, local and federal tax impacts, are expected to total $8.4 billion.
The research was conducted on behalf of the American Gaming Association by Oxford Economics. The analysis is based on available data, interviews with industry participants, customized economic impact models and the professional judgment of Oxford Economics. National findings are based on the assumption that sports betting would be offered in the 40 states that had casino gaming available as of 2016.