Campaign for Fairer Gambling finds $9.5 billion in untaxed illegal gambling profits | Entrepreneur

Campaign for Fairer Gambling (CFG) has released a report that finds that billions of dollars are not being taxed on illegal gambling gains.

The report was conducted in connection with Yield Sec (YS), a financial reporting and business analyst in the United States. It broke down three states with varying levels of regulation on digital gambling.

Three states analyzed for gambling tax revenue

New Jersey, New York, and Minnesota were the three states in question. New Jersey has the longest-running relationship with gambling registration and taxes. New York is an online-only gambling state, and Minnesota has no gambling legislation whatsoever.

The staggering report found that between the three states, over $9.5 billion was raked in from black market gambling.

Founder and CEO of Yield Sec, Ismail Vali said “It’s time for the federal government to end this theft in broad daylight. This data and analysis exposes a stark reality: illegal gambling operators are brazenly stealing money from state and federal coffers, and legitimate American industry.”

New Jersey recorded that 22% ($996 million) of gross gambling state revenue was put back into online sports betting. 16% ($719 million) in illegal online casino gaming. The report also found that 860 illegal sports betting & casino operators actively target New Jersey.

New York was found to have the largest percentage of gambling revenue pumped into the black market games of chance. $3.4 billion in online casino gaming, and $1.9 billion to illegal online sports betting. Minnesota, a state with no legal online betting recorded almost $2bn in illicit profits.

“We are eager to equip policymakers with real, reliable data, so that we can have more informed, balanced debate, and ultimately smarter gambling policy,” said CFG founder Derek Webb. “It is only through looking at data and applying logic that an evidence-based picture of the market can be constructed, so it was essential to involve Yield Sec in this project as the only intelligence firm able to provide analysis of illegal and legal operations, and therefore perspective upon the total marketplace for online gambling in the USA.”

Image: Ideogram.