Calculating The Real Cost Of Illegal Sports Betting
While sports gambling remains against the law in a variety of contexts, there are ways for fans to place wagers on games and events of all sorts. Unfortunately for government entities that collect tax revenue from such legal forms of gambling, however, studies show that nearly half of all Americans who engage in sports gambling have done so illegally at least once this year.
The World Cup factor
With all eyes on Qatar over the past several weeks for the World Cup soccer games, it was much easier to see the impact of betting within the athletic world. Records indicate that millions of Americans placed at least one bet on the outcome of certain games — including many who broke the law in doing so.
While the tax revenue from these bets could have been a boon to state coffers, experts estimate that many millions of dollars in taxes were never paid because gamblers skirted the law in placing their wagers.
Some reports suggest that governments will attempt to address the issue, whether by cracking down on illegal gaming operations, expanding legal options, or even increasing the burden on ordinary taxpayers in order to make up for the deficit.
It all adds up to big losses
Since legal gambling sites like FanDuel and DraftKings burst onto the scene in recent years, the number of sports best placed nationwide has skyrocketed. At the same time, the rate of illegal gambling has similarly seen a noticeable uptick.
Here are some startling stats about the state of the industry:
- Bets on legal gambling platforms are expected to top $100 billion this year.
- Experts believe illegal betting operators make up roughly 40% of the overall gambling market.
- About 15% of all sports gamblers placed illegal bets each time they gambled.