WASHINGTON – American Gaming Association President and CEO Bill Miller released the following statement on the revised interim regulatory guidelines that the Small Business Administration issued today for the Paycheck Protection Program:

“The Small Business Administration (SBA) today released revised regulatory guidelines that will allow additional small businesses that derive revenue from legal gaming to participate in the Paycheck Protection Program (PPP). While these changes represent some progress, they fall woefully short of fully addressing antiquated, discriminatory policies that have, to date, restricted small gaming companies from accessing critical loan support made available through the CARES Act. As a result of this half-measure, small gaming businesses that have closed to comply with government orders will continue to be denied access to this critical lifeline to support their employees.

“The American Gaming Association (AGA) is grateful for the leadership of a significant group of bipartisan, bicameral members of Congress who have advocated tirelessly for equal treatment of small commercial and tribal gaming operations in their communities. As Congress seeks to put additional resources behind the PPP, we look forward to working with them to make it clear that ‘we are all in this together’ by rejecting the SBA’s dangerous view that gaming employees don’t deserve assistance during this unprecedented crisis.

“The AGA will continue to strongly advocate for relief that supports the displaced gaming workforce and gaming companies of all sizes through this crisis.”

 Background

• Last Thursday, the AGA wrote President Trump regarding the Paycheck Protection Program.
• Dozens of bipartisan members of Congress also called the administration and wrote letters regarding gaming’s exclusion from the program.
• Casino gaming is vital to local small businesses, supporting 350,000 small business jobs and delivering $52 billion annually in small business revenue, including construction, manufacturing, retail, and wholesale firms.
• All 989 commercial and tribal casino properties have shuttered their doors because of the COVID-19 pandemic. More than half of the 1.8 million jobs gaming supports are at non-gaming businesses, such as restaurants and local shops, which are all dramatically affected by a local casino’s closure.
• In many states, gaming pays among the highest tax rates of any industry with $10.7 billion in gaming taxes and tribal revenue share payments that support fundamental and critical programs from infrastructure to education.

WASHINGTON – American Gaming Association President and CEO Bill Miller released the following statement on the interim regulatory guidelines issued by the Small Business Administration for the Paycheck Protection Program:

“The American Gaming Association (AGA) is deeply concerned with the interim regulatory guidelines issued by the Small Business Administration (SBA), which preclude small gaming entities and their employees from receiving economic support under the newly-established Paycheck Protection Program (PPP).

“In SBA’s efforts to quickly issue guidance on the PPP, they relied on antiquated, discriminatory regulations that ignore today’s economic reality and the congressional intent behind the CARES Act, which states that any business concern shall be eligible to receive an SBA loan if they meet specific qualifications regarding their number of employees.

“Unless amended, these initial guidelines will irreparably harm one-third of the U.S. casino industry and the hundreds of thousands of Americans that rely on gaming businesses for their livelihood.

“This decision will affect hard-working Americans from Pennsylvania to Nevada, Ohio to Colorado, and everywhere in between who need and deserve the same level of support as anyone across the country during these unprecedented times. Moreover, as the AGA pointed out in a letter to SBA and the U.S. Department of Treasury, the inclusion of gaming businesses in the PPP is critical to help ensure employees can remain connected to their employers, stay off of unemployment, and quickly return to their jobs when this pandemic subsides.

“The AGA urges SBA Administrator Carranza to immediately correct this oversight and extend this needed relief to all of America’s small businesses and their employees, including those in the communities across 43 states that rely on our industry’s contributions.”

Background

• Casino gaming is vital to local small businesses, supporting 350,000 small business jobs and delivering $52 billion annually in small business revenue, including construction, manufacturing, retail, and wholesale firms.
• Nearly all (987 of 989) commercial and tribal casino properties have shuttered their doors because of the COVID-19 pandemic. More than half of the 1.8 million jobs gaming supports are at non-gaming businesses, such as restaurants and local shops, which are all dramatically affected by a local casino’s closure.
• In many states, gaming pays among the highest tax rates of any industry with $10.7 billion in gaming taxes and tribal revenue share payments that support fundamental and critical programs from infrastructure to education.

More information on COVID-19’s impact on U.S. casino industry workers and local communities is available here.

Washington, D.C. – U.S. commercial gaming continued its long run of consecutive quarterly revenue growth in the second quarter, hitting a Q2 record of $16.07 billion, according to the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker. The total outpaced Q2 2022 by 8.1 percent and marked the 10th consecutive quarter of annual growth for the commercial gaming industry.

Q2 2023 is the second-highest grossing quarter in industry history, topped only by Q1 2023, making H1 2023 the commercial gaming industry’s strongest half ever. The $32.71 billion in commercial gaming revenue generated in the first six months of 2023 tracks 11.9 percent ahead of the same period last year.

The industry’s strong performance has resulted in an estimated $7.28 billion in direct gaming tax revenue for state and local governments through the first six months of the year. Pacing 12.9 percent ahead of last year, 2023 is on pace to generate more gaming tax revenue than any previous year.

“While commercial gaming is on track for an unprecedented third consecutive year of record revenue, the lasting impact we’re making on our communities through this record growth is even more impressive,” said AGA President and CEO Bill Miller.

While land-based gaming continues to account for more than three-quarters of total commercial revenue, the industry’s year-over-year growth is being driven by the online sports betting and iGaming sectors.

Q2 revenue from land-based slots, table games and retail sports betting totaled $12.38 billion, a slight increase (+0.9%) compared to the previous year. Meanwhile, revenue from online gaming rose 43.1 percent year-over-year in Q2 to $3.68 billion, in part driven by the introduction of mobile sports betting in Kansas, Maryland, Massachusetts and Ohio within the past year.

Combined online and land-based sports betting revenue totaled $2.3 billion in Q2 2023, an industry record for any second quarter and a 56.6 percent year-over-year increase. Meanwhile, online casino gaming tied Q1 for its highest-grossing quarter ever, generating $1.48 billion in revenue, up 22.5 percent over Q2 2022.

Across the country, 23 of 34 commercial gaming jurisdictions that were operational one year ago saw increased Q2 revenue from 2022.

“These results are a clear indication that our post-pandemic recovery wasn’t a fluke: the gaming sector continues to thrive, and when we do well, our communities do well,” continued Miller. “To sustain this momentum, the AGA will continue enlisting more allies in our fight against the illegal market, bolstering responsible gaming, and building a business environment that allows our innovative industry to bring world-class entertainment to adults across America.”

Background

• AGA’s Commercial Gaming Revenue Tracker provides state-by-state and cumulative insight into the U.S. commercial gaming industry’s financial performance based on state revenue reports. This issue highlights Q2 2023 results.
• 34 states and the District of Columbia featured operational commercial gaming markets in Q2 2023, including casino gaming, sports betting and iGaming.
• AGA’s State of Play Map charts gaming’s economic impact, industry regulations and casino locations on a state-by-state basis for both the commercial and tribal gaming sectors.

About the AGA
As the national trade group representing the U.S. casino industry, the American Gaming Association (AGA) fosters a policy and business environment where legal, regulated gaming thrives. The AGA’s diverse membership of commercial and tribal casino operators, sports betting and iGaming companies, gaming suppliers, and more lead the $261 billion industry and support 1.8 million jobs across the country.

Washington – The American Gaming Association (AGA) announced the Gaming Hall of Fame Class of 2023, honoring four leaders for their significant contributions to the industry:

• Bill Anoatubby, Governor, Chickasaw Nation
• Robert Miodunski, Former CEO, American Gaming Systems; Former President & CEO, Alliance Gaming and President, Bally Gaming
• Jim Murren, Former Chairman and CEO, MGM Resorts International
• Ellen Whittemore, Executive Vice President, General Counsel and Secretary, Wynn Resorts

“This year’s Gaming Hall of Fame class enshrines industry leaders that have positively transformed businesses and communities through their contributions to gaming,” said AGA President and CEO Bill Miller. “From leading casino and supplier operations to advancing industry regulation and tribal gaming, Bill, Ellen, Jim and Robert’s far-reaching impacts on gaming are indelible—and undoubtedly worthy of inclusion in the Hall of Fame.”

Since 1989, the Gaming Hall of Fame has recognized gaming legends, pioneers and business leaders for their lasting impacts on the industry. The Class of 2023 will be honored during an invitation-only induction ceremony at the Global Gaming Expo (G2E) in Las Vegas this October.

“The Gaming Hall of Fame honors the diverse ways gaming leaders elevate our industry,” said AGA Chairman of the Board & Hard Rock International Chairman and Seminole Gaming CEO Jim Allen. “This year’s class epitomizes this principle, and we look forward to celebrating their accomplishments at G2E 2023.”

Hall of Fame honorees are selected by an independent panel of gaming executives. This year’s selection committee members include:

• Brett Abarbanel, Executive Director, International Gaming Institute, UNLV
• Jim Allen, Chairman, Hard Rock International and CEO, Seminole Gaming
• Kirsten Clark, Executive Director, International Association of Gaming Advisors
• John Connelly, CEO, Interblock
• Brian Hansberry, President, Gaming, Delaware North
• Bill Lance, Secretary of State, Chickasaw Nation
• Mark Lipparelli, Chairman, International Center for Responsible Gaming
• Cassie Stratford, SVP, Legal Operations & Compliance, Boyd Gaming; President and Chair, Global Gaming Women
• Howard Stutz, Senior Reporter, The Nevada Independent

Additional information about each inductee’s accomplishments is below, and headshots can be downloaded for editorial use here.

Bill Anoatubby, Governor, Chickasaw Nation
Anoatubby has served as Governor of the Chickasaw Nation since 1987. Early in his tenure, Anoatubby recognized the important role gaming could play in advancing sustainable economic development and self-determination for the tribe. Since 1987, gaming operations have helped drive the number of Chickasaw Nation employees from 250 to more than 14,000, expanding tribal assets two-hundredfold. As Governor, Anoatubby oversees the tribe’s operation of more than 100 diversified businesses—including 24 tribal gaming locations—generating funding for 200-plus programs and services that benefit education, healthcare, housing and more for Chickasaw families, Oklahomans and their communities. Anoatubby also played an integral role establishing the Indian Gaming Association and Oklahoma Indian Gaming Association, as well as negotiating the 2004 Oklahoma gaming compact which solidified the future of tribal gaming in the state. Under Governor Anoatubby’s direction, the Chickasaw Nation also places a strong emphasis on preserving and sharing its heritage, history, language and culture.

Robert Miodunski, Former CEO, American Gaming Systems; Former President & CEO, Alliance Gaming and President, Bally Gaming
As President of United Coin Machine Co. (a division of publicly traded Alliance Gaming Corp.) from 1994-99, Miodunski built the nation’s largest gaming route operation, totaling more than 8,000 gaming devices. He also led the development and launch of Gamblers Bonus, the first patented cardless player tracking and bonusing system for route operation in Nevada. Promoted to President and CEO of Alliance Gaming and President of Bally Gaming in 1999, he led a team that resurrected the venerable Bally brand to its place as one of the global gaming industry’s top casino suppliers, eventually transforming into Bally Technologies. Miodunski retired in 2004, then returned to the industry in 2010 to head American Gaming Systems (AGS) as CEO, expanding the company’s footprint in Class II and Class III gaming before AGS was acquired by a private equity firm in 2014. Most recently, Miodunski served as a board member of Golden Entertainment from 2015 to 2021. 

Jim Murren, Former Chairman and CEO, MGM Resorts International
Murren is the former Chairman and CEO of MGM Resorts International, serving in the role from 2008 to 2020. During his time leading MGM Resorts, Murren guided the company through the wake of the Great Recession, overhauled the company’s healthcare policy to better serve employees, led technological innovation in gaming, and drove increased tourism to Las Vegas. Following his tenure at MGM Resorts, Murren headed Nevada’s COVID-19 Response, Relief, and Recovery Task Force as its gubernatorially appointed chairman, working closely with local government leaders and the private sector to secure personal protective equipment, establish a robust statewide testing system, and ensure Nevada students were provided with the resources to learn remotely. Murren has also been an integral figure in bringing professional sports to Las Vegas, leading the construction of T-Mobile Arena, becoming a founding partner of the Vegas Golden Knights, organizing the purchase and relocation of the Las Vegas Aces, and more. He currently serves as Chairman and CEO of Ritz-Carlton Yacht Collection.

Ellen Whittemore, Executive Vice President, General Counsel and Secretary, Wynn Resorts
Whittemore serves as Executive Vice President, General Counsel, and Secretary for Wynn Resorts. In her role, she leads the company’s global legal affairs as well as the entirety of its philanthropic, community relations and government affairs activities. She has been instrumental in Wynn Resorts’ efforts to enhance its workplace culture as well as its corporate ethics and governance, and was integral in crafting the company’s global response to the pandemic. Whittemore is also a member of the board of directors of Wynn Macau, Limited. Her legal career spans more than 30 years in gaming and hospitality, during which she has represented many of the industry’s largest companies in noteworthy regulatory matters. Before her career in private and corporate practice, Whittemore served in the Nevada Attorney General’s Office, Gaming Division, where she authored several Nevada Gaming Commission regulations that remain in place today. Whittemore has long been an active community and industry leader and is the current Chair of the Nevada Resort Association and the former President of the International Association of Gaming Advisors.

###

Despite persistent concerns about the financial health of American consumers throughout 2022, the U.S. commercial casino gaming industry generated record-breaking revenue for a second consecutive year as total nationwide consumer spending on commercial casino gaming and sports betting increased by 14.0 percent to $60.46 billion.

Annual U.S. Commercial Gaming Revenue

In 2022, nearly all of the 35 jurisdictions with commercial casinos or sports betting operations saw a rise in annual gaming revenue, with only the District of Columbia, Mississippi and South Dakota reporting a decline. Twenty-seven out of the 35 jurisdictions achieved their highest-ever annual revenue from commercial gaming. Notably, Nebraska and Virginia joined the commercial casino marketplace in 2022 with the expansion of land-based casinos into each state.

Commercial Casino Gaming Consumer Spend by State 2021 vs. 2022

The surge in gaming revenue resulted in an unprecedented $13.49 billion of direct gaming tax revenue disbursed to state and local governments by commercial gaming establishments, reflecting a 15.3 percent increase compared to 2021. This figure just includes specific state and local taxes directly linked to gaming activities. The $13.49 billion does not encompass the billions of dollars paid by the industry in the form of income taxes, sales taxes or various corporate taxes, nor does it incorporate the payroll taxes paid by gaming operators and suppliers. Federal excise tax payments made by sports betting operators are also excluded from the total.

Commercial Casino Direct Gaming Tax Revenue by State 2021 vs 2022

While land-based gaming still dominated the overall commercial gaming revenue pie, sports betting and iGaming saw tremendous growth in 2022, setting new annual records.

Sports betting revenue soared 61.1 percent year-over-year, from $4.34 billion in 2021 to $7.50 billion in 2022, as Americans bet a total of $93.2 billion on sports throughout the year. The growth was driven by the launch of legal betting in Kansas and the addition of mobile betting in Louisiana, Maryland and New York.

The geographically smaller iGaming market also continued to break records in 2022, with combined iGaming revenue from six active states (excluding Nevada’s online poker only market) reaching $5.02 billion, a 35.2 percent increase year-over-year. Notably, iGaming’s growth came without any new states launching in 2022.

United States: Regulated Sports Betting GGR (US$BN) – 2019 to 2022

United States: Regulated iGaming GGR – 2014 to 2022

About State of the States
AGA’s annual State of the States report details the commercial gaming industry’s financial performance, including analyses of each of the 35 jurisdictions with commercial gaming operations in 2022. The report, developed with VIXIO GamblingCompliance, also provides a breakdown of the legality of types of gaming and number of casinos by state, summarizes major gaming policy discussions, and previews opportunities and challenges for the industry. The companion State of Play map provides the report findings, as well as key regulatory and statutory requirements for each state, in an easy-to-use, interactive tool.

WASHINGTON – Gaming revenue for the U.S. commercial casino industry reached an all-time high of $41.7 billion in 2018, up 3.5 percent from the previous year, according to data released today in the American Gaming Association’s (AGA) State of the States 2019: The AGA Survey of the Commercial Casino Industry.

Key findings from the State of the States 2019 report include:

• The commercial casino sector—with 465 casinos—logged its fourth consecutive year of gaming revenue growth and outpaced the national economic growth rate in 2018;
• The industry generated $9.7 billion in gaming taxes for state and local governments, a number that does not account for the billions more in sales, income and other taxes that benefit communities; and
• Half of the 24 states with commercial casinos reported record annual gaming revenue with nearly every state seeing gains in 2018, contributing to the strength of local economies across the country.

“Year after year, the commercial casino industry has reaffirmed its role as an economic powerhouse in the United States,” said Bill Miller, president and CEO of the American Gaming Association. “More people than ever are experiencing the economic and social benefits of gaming in their communities, due in part to the expansion of legal sports betting across the country.”

The rapid expansion of legalized sports wagering following the Supreme Court decision to overturn the Professional and Amateur Sports Protection Act (PASPA) in May 2018 played a role in the industry’s record year. Total industrywide revenue from sports betting grew to $430.2 million in 2018, up from $261.3 million in 2017. AGA anticipates this growth to continue as additional states legalize and regulate sports wagering.

“Growth in the commercial gaming sector enables the industry to continue to reinvest in communities, enhance partnerships with small businesses and nonprofits and provide career opportunities for nearly two-million American workers,” Miller added.

AGA’s annual State of the States report details the commercial gaming industry’s financial performance, including analyses of each of the 24 states with commercial gaming operations. The report, developed with Gambling Compliance, also provides a breakdown of the legality of types of gaming and number of casinos by state, summarizes major gaming policy discussions and previews opportunities and challenges for the industry.

About the American Gaming Association:

The American Gaming Association (AGA) is the premier national trade group representing the $261 billion U.S. casino industry, which supports 1.8 million jobs nationwide. AGA members include commercial and tribal casino operators, gaming suppliers and other entities affiliated with the gaming industry. It is the mission of the AGA to achieve sound policies and regulations consistent with casino gaming’s modern appeal and vast economic contributions.

Recent research released shows that the gaming industry supports 350,000 small business jobs and is responsible for $52 billion in small business revenues. The report, The Gaming Industry’s Impact on Small Business Development in the United States, was completed by Spectrum Gaming Group and commissioned by AGA.

To highlight the report’s findings, AGA launched its nationwide American Gaming Small Business Jobs Tour. The tour will scan the country to showcase gaming’s strong, positive impacts on local, small businesses that are driving Main Street’s success and American employment. AGA plans to work with a wide range of member companies to showcase their strong partnership with small businesses all around the country.

Resources

Press Release

Newsletter

Press Coverage Summary

Las Vegas Review-Journal – Road trip by AGA slated to explain how casinos help small businesses

Providence Business News – Report: Casinos in R.I. contribute $1B in economic activity

Politico – Influence

CDC Gaming Reports – AGA: Maryland Casinos Drive Opportunity and Growth for Small Businesses

Casino City Times – Gaming industry important for small businesses, says AGA

CDC Gaming Reports – AGA highlights gaming industry’s positive impacts on small business

Casino.org News – Gaming Industry’s Positive Economic Impact Theme of AGA Small Business Jobs Tour

CDC Gaming Reports – New Study: Casino Industry is Essential to Small Business Growth

Washington, D.C. – Today, the American Gaming Association (AGA) released new research providing an in-depth examination of diversity in the gaming industry workforce. The findings show that the gaming industry is more diverse than national and hospitality industry benchmarks and boasts a diverse executive pipeline, while identifying opportunities on gender representation.

“Consumers, policymakers and investors are raising their expectations for all businesses on how they contribute to society beyond the bottom line,” said AGA President and CEO Bill Miller. “Encompassing data from across commercial, tribal and manufacturing gaming verticals, the survey both highlights our industry’s leadership on diversity while presenting areas for continued progress.”

The study’s findings show tangible results of the industry’s broad reach and commitment to representing local communities:

• More than 6 in 10 (61%) of gaming industry employees are minorities, compared to 52 percent of the broader hospitality industry and 42 percent of the total U.S. workforce.
• 23 percent of gaming employees are Hispanic and 19 percent are Black—both higher than the national workforce and in line with the hospitality industry.
• 60 percent of operator employees are minorities, up nearly 20 percent from 2011 and higher than the hospitality sector and national workforces overall.
• 45 percent of gaming manufacturer employees are minorities, compared to 38 percent of the broader electronic manufacturing workforce.

Importantly, across job levels, gaming’s leadership pipeline is significantly more diverse than national averages at the first/mid-level manager and professional levels: 45 percent of first/mid-level managers are minorities while 43 percent of professionals are minorities, both 10 to 12 points above national and hospitality benchmarks.

Gender diversity presents an opportunity for the industry. Gaming’s workforce is 48 percent female, in line with the national workforce, but representation drops off at more senior level job classifications.

“As today’s report shows, our industry has made impactful strides toward becoming more diverse, but there is more work to do,” added Miller. “The AGA will use this research to engage our membership on how we can collectively advance DEI in gaming in the months and years to come.”

The benchmarking report comes a year after the AGA identified core pillars of ESG in gaming: advancing sustainability, strengthening DEI, investing in communities and leading responsibly.

Methodology
A total of 26 AGA member organizations participated in the study, including companies from the manufacturer (8) and the commercial and tribal operator (18) segments of the gaming industry. Through the EEO-01 form, participants provided gender, race/ethnicity and job classification data for their workforces. Participants submitted data to a third-party accounting firm which calculated the various diversity metrics and safeguarded confidentiality. The data submitted has been reviewed for consistency across participants.

###

About the AGA
As the national trade group representing the U.S. casino industry, the American Gaming Association (AGA) fosters a policy and business environment where legal, regulated gaming thrives. The AGA’s diverse membership of commercial and tribal casino operators, sports betting and iGaming companies, gaming suppliers, and more lead the $261 billion industry and support 1.8 million jobs across the country.

WASHINGTON – Today, the American Gaming Association’s (AGA) Sara Slane, senior vice president of public affairs, was named to the Sports Business Journal’s Forty Under 40 list, an annual honor bestowed on the most influential voices in the sports business sector under the age of 40.

The Forty Under 40 Awards is the Sports Business Journal’s annual celebration of the best young talent in sports business. Slane is joined in the 20^th Forty Under 40 class by sports league, team, technology and industry executives, all of whom are being recognized for excellence and innovation in their careers.

“Sara played an outsized role in creating the opportunity for legalized sports betting to exist in the United States,” said Bill Miller, AGA’s president and chief executive officer. “As the industry’s lead advocate, she successfully united the gaming, sports and entertainment industries, brought lawmakers to the table and drove a communication campaign that delivered a historic policy outcome. This recognition is not only well deserved but is shared by stakeholders within and outside our industry.”

Slane continues to lead the AGA’s multi-year campaign to educate policymakers, sports stakeholders and the public about the failures of the Professional and Amateur Sports Protection Act of 1992 (PASPA), making the case for legal, regulated sports betting in the United States. Slane’s leadership in this initiative led to the industry’s support for New Jersey’s petition to the Supreme Court, as well as the filing of two amici briefs, which were cited twice in the Court’s ruling to overturn PASPA.

Under her leadership, AGA quantified the size of the current illegal sports betting market and the economic opportunities enabled by legal sports betting for sports leagues, states and sovereign tribal nations. She is the nation’s preeminent resource on the hottest topic in sports, convening stakeholders, educating lawmakers and enabling this new sector to thrive.

Click here for a high-resolution photo.

About AGA: The American Gaming Association is the premier national trade group representing the $261 billion U.S. casino industry, which supports 1.8 million jobs nationwide. AGA members include commercial and tribal casino operators, gaming suppliers and other entities affiliated with the gaming industry. It is the mission of the AGA to achieve sound policies and regulations consistent with casino gaming’s modern appeal and vast economic contributions.

###

AGA’s report estimates that Americans bet more than $510.9 billion a year with illegal and unregulated operators. This costs the legal industry $44.2 billion in gaming revenue and state governments $13.3 billion in lost tax revenue.

The legal gaming industry is among the most highly regulated industries in America. Whether it is financial solvency and other licensing requirements, know your customer or anti-money laundering regulations, legal gaming operators and suppliers comply with thousands of laws and regulations designed to ensure consumer protections and confidence in the gaming market.

Illegal and unregulated gambling operators do not follow any of these standards, which exposes consumers to severe risk and undermines the economic and tax contributions of the legal gaming industry. Unlike legal operators, illegal operators also don’t pay a dime in taxes.

AGA’s report, Sizing the Illegal and Unregulated Gaming Markets in the U.S., estimates that Americans bet more than $510.9 billion a year with illegal and unregulated operators. This costs the legal industry $44.2 billion in gaming revenue and state governments $13.3 billion in lost tax revenue.

Sports Betting Findings
AGA’s report estimates that Americans wager $63.8 billion with illegal bookies and offshore sites at a cost of $3.8 billion in gaming revenue and $700 million in state taxes. With Americans projected to place $100 billion in legal sports bets this year, these findings imply that illegal sportsbook operators are capturing nearly 40 percent of the U.S. sports betting market.

The report also finds that 49 percent of past-year sports bettors have placed a bet with an illegal operator. Previous AGA research shows that more than half of Americans that bet on sports with illegal operators believe they are wagering legally.

iGaming Findings
Americans wager an estimated $337.9 billion with illegal iGaming websites, with a loss of $3.9 billion in state tax revenue. With $13.5 billion in estimated revenue, the illegal iGaming market in the U.S. is nearly three times the size of the legal U.S. iGaming market, estimated to be $5 billion in 2022.

With iGaming only legal in six states, nearly half of Americans (48%) that have played online slots or table games in the past year have played with illegal online casinos.

Unregulated and  “Skill Machine” Findings
Unregulated gaming machines, including so-called “skill machines,” also continue to proliferate, with an estimated 580,651 unregulated machines in the U.S. With 870,000 regulated machines in casinos and slot routes, that means 40% of all gaming machines in the U.S. are unlicensed.

Based on state regulatory data for similar machines, the operator win percentage on unregulated gambling machines is significantly higher than legal casino slot machines. During the past 12 months, slot machines in Nevada have a 7.16 percent win rate, compared to a nearly 25 percent estimated win rate for unregulated machines—demonstrating how unregulated machines take advantage of customers.

Methodology
The study was conducted by The Innovation Group on behalf of the American Gaming Association and is based largely on a survey of 5,284 U.S adults, examining their past-year gambling behaviors with both legal and illegal operators as well as their observations of unregulated gaming machines. It also incorporates publicly available data on the size of the legal U.S. gaming market and certain state gaming machine markets.