A Comprehensive Review of Economic and Problem Gambling Impacts of iGaming Legislation Across U.S. States and International Markets

This research report provides an independent, data-driven assessment of the economic, regulatory, and public-health impacts of iGaming across U.S. states and international jurisdictions. Drawing on extensive data from state agencies, public health departments, academic research, and global regulatory bodies, the study finds that while iGaming generates substantial new tax revenue and expands the digital economy, it also incurs high, measurable social costs that disproportionately affect young adults, minority communities, and economically vulnerable populations.

States that have legalized iGaming have benefited from substantial monthly revenues, often exceeding $150–200 million in leading jurisdictions, along with increased tax receipts, reductions in illegal gambling, and new employment opportunities in technology, compliance, cybersecurity, and digital operations. These revenues have supported public services, education, and problem-gambling initiatives, demonstrating the fiscal appeal of regulated online markets. At the same time, evidence from multiple states and international markets shows that iGaming can partially displace revenue from brick-and-mortar casinos, reduce foot traffic, and shift discretionary spending away from local economies. This raises questions about net economic impact, particularly in regions where hospitality and land-based gaming play a central role in employment.

Across the U.S., Canada, Australia, the Netherlands, and the United Kingdom, online gambling is consistently associated with higher rates of gambling harm than traditional, in-person gambling. Young men ages 18–30 show the highest prevalence, with problem-gambling rates two to three times higher than the general population. International studies find that most online sports bettors and slot players report at least one problem-gambling behavior, far exceeding the rates observed among in-person casino patrons. These harms manifest as financial distress, mental-health challenges, academic and workplace impairment, and rising demand for social-service and treatment systems. African American communities and other minority groups experience greater vulnerability due to socioeconomic stressors and limited access to support resources. At the same time, new data show increasing problem-gambling risks among adolescents and young women as well.

Jurisdictions abroad illustrate both the promise and the risks of rapid expansion in online gambling. Ontario’s fast-growing market demonstrates the economic upside of a well-regulated system but also reveals surges in helpline calls and concerns about excessive advertising. Australia reports some of the highest gambling-harm rates in the world, driven by digital accessibility and aggressive marketing. The UK’s long-standing online gambling market shows that even mature regulatory environments struggle to contain harm, with 2 million residents experiencing gambling problems. The Netherlands, after legalizing online gambling in 2021, experienced rapid growth alongside rising addiction indicators, prompting fines for operators targeting young adults and calls by some lawmakers to reconsider legalization.

Taken together, the evidence indicates that iGaming offers meaningful fiscal benefits but also creates substantial and unevenly distributed societal costs. These costs, including higher rates of addiction, increased healthcare and social-service burdens, and widening economic disparities, must be weighed carefully against projected revenues. The report emphasizes that legalizing or expanding iGaming is not merely an economic decision; it is a public health decision with long-term consequences for families, communities, and state budgets. Legislators considering adoption or expansion will require clear, ongoing data; strong consumer protections; targeted youth-prevention strategies; and regulatory frameworks that balance innovation with the obligation to safeguard vulnerable populations.