Sports betting 'has and will continue to expand the budgets of state and federal government,' the university said, noting that there has been 'continuing growth in the market as tax revenue has increased annually in the sports betting market' and that the tax revenues have been beneficial to almost every state that has legalized the practice. The current laws allow individual states to determine how they tax sportsbooks, the Journal notes, adding that it allows them to 'obtain funds can be utilized for any purpose, including construction and roadwork, schools, and health facilities.'Ī study by the University of Michigan's Journal of Economics held a similar conclusion, opining, 'More money generated by sportsbooks has led to more tax revenue for state governments that have legalized online sports betting.' The study also noted that some states, such as Illinois and New Jersey, have brought in more than $1 billion in sports betting taxes. Nevada, the American hub of gambling, generates 'generates hundreds of millions of dollars per month from sports betting,' the California Business Journalwrites, adding that it 'seemed inevitable that other states would follow suit.'
While controversy around the practice remains, the most common argument for allowing sports betting is that it provides a significant economic boost.
