Online Gambling Losses in the US to Exceed $1 Trillion by 2028

The expansion of legal betting and online gambling across the United States enables millions of Americans across the country to place legal bets. However, thanks to smartphones, wagering on sports or iGaming is a few taps away, which in some cases results in excessive gambling and harm.

People affected by problem gambling spend more than they can afford which results in spiraling losses. New research estimates that the losses to gambling in the country are expected to hit at least $1 trillion in the next few years.

Losses to Gambling in the US Expected to Continue Growing

On Wednesday, the Campaign for Fairer Gambling (CFG), pointed to recent data from YieldSec, which estimated that the illegal online gambling sector in the US was valued at $40 billion in 2023. On the other hand, the CFG also pointed to World Health Organization (WHO) estimates which estimated that the online gambling sector in the country would reach $700 billion annually by 2028.

Concerningly, the impact of illegal and legal gambling activities is expected to be in the trillions before the end of the decade. Per CFG’s recent report, the US economy and consumers are expected to lose a minimum of $1 trillion to online gambling activities by 2028. For comparison, the sum that may be lost to gambling in across the United States presents nearly half of Canada’s gross domestic product (GDP), which was $2.14 trillion in 2023.

Effective Regulations, Prohibition of Advertising Can Help Curb Problem Gambling

Concerningly, the gambling expansion is connected to the growth of gambling harm. Part of the issue is the easy access to gambling activities but insufficient legislation for consumer protection also contributes. The CFG highlighted the importance of “Duty of Care” for legal gambling operators as a means to prevent harm and problem gambling. Still, the US is yet to consider a regulatory framework on a federal level, encompassing iGaming and sports betting as well.

Derek Webb, CFG’s founder, was positive about the potential of duty of care in the context of class action lawsuits against the legal online gambling sector. “This is especially relevant where consumers have been induced into gambling beyond their means,” he added.

Webb also highlighted the importance of robust know-your-customer policies that can help prevent money laundering or other financial crimes. “States giving tax breaks to any form of gambling or gambling promotion should consider whether they are exposing themselves or their regulators to litigation risk,” the executive added.

The combination of illegal and legal gambling is proven to increase consumption. According to WHO, to successfully combat public health issues such as gambling harm, the advertising and promotion of gambling needs to come to an end. At the same time, reducing gambling sponsorships in sports can also play a key role in that process.