Long Odds: Healthcare Technology Vs. Gambling…

This post is by ontheflyingbridge from On the Flying Bridge

The American Gaming Association (AGA) estimated that $2.7 billion was legally wagered on the “March Madness” tournament this past weekend, which does not account for office pools and private bets among friends. While this is a small fraction of the $23.1 billion estimated to have been wagered on this year’s Super Bowl, both reflect a dramatic increase over prior years given the proliferation of new sports gaming apps and additional states permitting legalized gambling. The AGA estimated that the U.S. gaming industry revenues was $66.5 billion in 2023, which is a 10% increase over 2022. If one were to include the “tribal gaming” revenues, the total would have been closer to $110 billion. While legalized sports betting was only $10.9 billion in 2023, it increased significantly year-over-year by 45%. Clearly, there has been a dramatic post-Covid upswing in gaming revenues with robust consumer spending, popularity of new gaming apps, and that gambling is now permitted in 35 states.
The AGA is quick to point out that $14.4 billion was paid in gaming taxes in 2023, which while laudable and a real number, happens to only be how much was spent on just treating Parkinson’s Disease last year. Perhaps what is more troublesome (or insidious), along with a much more permissive environment and greater real-time accessibility, is the level of unchecked illegal gambling, now estimated to be $510 billion. To provide some context, this is the GDP of Thailand or the United Arab Emirates. While the AGA claims that there are (Read more…)