Americans enjoy wagering and playing casino games. In 2024, it was reported that 55% of adults say that they had participated in gambling compared to 43% in 2019. For a nation that has previously had an official total prohibition on this activity, that is quite a leap. Arizonans are even more keen on gambling than the average US citizen. 85% reported having spent on at least one gamble in 2023. The most common form of purchase is a lottery ticket, with slot machines second.
Some people might be surprised by these figures, particularly as online casino gambling is not legal in the state. Following the 2018 striking down of the PASPA federal gambling ban, Arizona (like many other states) moved to legalize sports betting. Online sports betting was introduced in September 2021, and now over 20% of the population is reported to enjoy placing sports bets. It is reported that since legalization, Arizonans have placed over $27 billion in bets.
As you can see, there is clearly a huge appetite for gambling games across the state, and it is hard not to wonder if the state is missing out on potential revenues by not allowing online casino gambling. Other states are raking in billions from slot machines on people’s phones, and while there are sports betting apps available, the main attractions are the ones with casino games.
Gambling is profitable entertainment
Only seven states have legalized online casino gambling. Pennsylvania is a case in point. Last year, it collected $1.05 billion in revenues from digital casinos compared with £188 million from online sports wagering. While some of the differences can be accounted for by state taxes on online casinos being higher than those levied on digital sports books, far more money flows through online slots and table games than through sports betting.
There are many reasons for this, but it goes back to the country’s natural affinity with slot machines. The first slot machine, the Liberty Bell, was invented and pioneered here. Las Vegas is the self-declared and internationally recognized epicentre of gambling and entertainment. Somewhat ironically, Las Vegas does not allow visitors or residents to wager online, but that is about protecting the profits of its physical assets. However, with a noticeable decline in tourist figures, it might be reconsidering its options.
Gambling IS entertaining
The lure of online slots and other casino games is that they are always available to play. In addition, most online casinos have thousands of games to choose from and offer attractive bonuses and seemingly irresistible jackpots. A wise gambler will be aware that in the long run, the house always wins. However, the thrill of the entertainment draws people in and keeps the wheels turning. If Lady Luck shines down on a player, withdrawing winnings should not be a faff!
Review sites offer recommendations to help players find the best online casinos, and Casino.org’s experts test the USA’s highest payout casinos, as well as share many other handy hints, tips, and general observations. While Arizonans might not be able to benefit from these while at home, residents in the states with legalized online casino gambling often use sites like this to help maximize enjoyment and chances of winning. In addition to keeping abreast of everything to do with real-money sites, great review sites like Casino.org also offer extensive coverage of sweepstakes and social casinos, which are legally accessible to Arizonans.
A drive to legalization
According to the recent Legal Sports Report, the seven states that allow real money online casinos collected a total of $2.1 billion in revenue. In the same time frame, online sports betting revenues across the thirty states with legalized online sports betting amounted to $2.9 billion. The states that allow both types of online gambling have all seen online casino revenue outpace that from sportsbooks. Rhode Island, which only recently introduced casino gambling, has seen its revenues leapfrog over the established sports book earnings.
Some states use the revenue raised to fund general state expenditures, but Illinois lawmakers pushing for legalization see it as a way to fund programs like education and homelessness without raising income taxes. Federal spending cuts have made this argument even more compelling. Could Arizona be missing out on this opportunity? Particularly when you consider that Arizonans are keen slots players.
It is unlikely that citizens are opting for legal sportsbooks, land-based casinos or restaurants over off-shore online casinos in the state. That is because the experiences are very different. Sports fans might wait around all day for kick off or in-play bets, those who like to play online slots, video poker or live dealer games for real money, enjoy the 24/7 access. However, the risks of playing on unregulated sites are high and include being scammed and exposed to gambling harms. In addition, every dollar staked off-shore is a loss to the state’s potential revenue flow.
Across the country, lawmakers advocate for legalizing online casinos, as ‘gambling is already everywhere’. Marcus Simon, a Virginia Democratic delegate, is a cosponsor of a bill to legalize online casinos and reportedly said, ‘folks are finding ways to do it anyway.’ Arizona, so far, has made no moves in this direction, and there is no major political figure here pushing for it. For now, it seems that there is no appetite because there is no urgent fiscal gap that needs filling.
There is also the concern that legalizing online casino gambling and slots in particular would be incredibly complicated. Tribal nation operators dominate the state’s land-based casino industry, and digital expansion would require compacts to be negotiated amid concerns that online platforms could cannibalize bricks-and mortar revenues. There is reluctance amongst existing operators to embrace iGaming unless they are entirely in control. Commercial operators would not be happy with this arrangement, so the model would need to be built from the ground up (or the cloud down).
No clear answers
Wherever it is introduced, iGaming legislation is always met with weightier opposition than for sports betting, as it is regarded as more addictive. However, banning it does not prevent people from accessing it, and it is a constant battle. The current policy is one of crackdown, and in December 2024, the Arizona Department of Gaming issued a Cease-and-Desist notice to Bovada, an online gambling operator. While they are the scourge of the legal industry, whose operators pay millions of dollars in fees and taxes for their internet privileges, driving them underground may not solve the problem.
