Online Gambling Could Make $48 Billion for U.S.

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In an attempt to build support for a bill that would roll back a ban on Internet gambling enacted when Republicans led Congress, the online gambling industry is running online ads noting that legal online gambling could raise $48 billion for the deficit-plagued U.S. government.

"At a time when the federal deficit is at record levels, regulation will raise up to $48 billion over 10 years," according to the . "In a struggling economic environment, regulated Internet gambling would generate billions in new revenue for federal and state governments to fund key economic and social programs," the ad continues on another screen.

Representative Barney Frank, D-Massachusetts, introduced legislation earlier this year, HR2267, that would allow the Treasury Department to license and regulate online gambling companies that serve American customers. Frank, who is chairman of the House Financial Services Committee, actually cited increased tax revenues as a reason to support the legislation.

Since introduction of the legislation, a bipartisan group of more than 50 co-sponsors have signed onto the bill, according to an article in PokerPagesOnline. Supporters include George Miller (D-CA), chairman of the Committee on Education and Labor; John Conyers (D-MI), chairman of the Committee on the Judiciary; Charles Rangel (D-NY), chairman of the Committee on Ways and Means; Edolphus Towns (D-NY), chairman of the Committee on Oversight and Government Reform; Pete King (R-NY), ranking member of the Homeland Security Committee; and Ron Paul (R-TX), vice-chairman of the Oversight and Investigations subcommittee.

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This thread springs from the industry ad referenced by that uses a large revenue projection to argue for legalizing regulated Internet gambling. Numbers like that are persuasive in political ads, but the claim is only as useful as the assumptions behind it. The post below breaks the usual gaps analysts should look for and flags the marketing/ethics points raised by .

Common caveats and what the headline usually hides:

  • Basis: whether the estimate uses gross gaming revenue (player stakes minus payouts) or some narrower taxable base — those give very different tax receipts.
  • Time horizon and present value: multi‑year totals can look big without showing annual flows or discounting.
  • Tax-rate and allocation assumptions: what marginal tax is applied and how revenue is split among federal and state governments.
  • Substitution effects: money may shift from brick‑and‑mortar casinos, lotteries, or offshore sites rather than being entirely “new.”
  • Compliance and administrative costs: licensing, monitoring (age checks, AML), and enforcement reduce net benefit.
  • Social-externality costs: treatment for problem gambling, enforcement, and public-service impacts are often omitted.
  • Market assumptions: active user counts, average spend, and growth rates are sensitive inputs — small changes yield large swings in outcomes.

Practical steps that strengthen debate (for policymakers, analysts, and marketers): insist on the full modelling methodology, a sensitivity analysis, an independent audit or peer review, and a net-benefit presentation that includes enforcement and social costs. For digital marketers, transparency and platform-policy compliance matter: avoid messaging that targets financially vulnerable groups, disclose regulatory status, and plan for geo‑targeting by jurisdiction.

Echoing , the ethical dimension matters as much as the fiscal one. A robust discussion needs clear, traceable assumptions rather than a single catchy headline.

Member Avatar for MktgRob
MktgRob 7 Nearly a Posting Virtuoso

I am not surprised because this will be yet another revenue stream for the federal government to drain money off of in the form of confiscatory taxes. But, while the country is in such bad economic strife and the steps the government has taken so far have had negligible effects, should the government really be promoting gambling to a population that is looking to hold on to its money longer.

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