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The Effects of Sports Betting on Casino Gambling in the United States

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  • Ege Can
  • Mark W. Nichols
  • Vasileios Pavlopoulos

Abstract

This paper examines the effect of sports betting legalization on casino gambling revenues, focusing on full legalization, defined as having both online and onsite sports betting operational. Our empirical analysis finds that full legalization has an average negative but statistically insignificant effect on casino revenues. We also find that the impacts vary by state, with the legalization of sports betting significantly reducing casino revenue in some states, increasing revenue in others, and having no statistical effect in the remaining states. We extend these findings by examining the potential net tax revenue implications resulting from legalized sports betting. Based on our empirical estimates and existing research, we provide possible explanations for our mixed findings, as well as tax policy considerations for states that have legalized or are considering legalizing sports betting.

Suggested Citation

  • Ege Can & Mark W. Nichols & Vasileios Pavlopoulos, 2026. "The Effects of Sports Betting on Casino Gambling in the United States," Southern Economic Journal, John Wiley & Sons, vol. 92(4), pages 990-1002, April.
    • Handle: RePEc:wly:soecon:v:92:y:2026:i:4:p:990-1002
    DOI: 10.1002/soej.70033
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