Department of Justice
|Year||Amount Bet on Sports in US||Number of States with Legal Sports Betting|
The Department of Justice has recently sought to reinterpret the Wire Act, which criminalizes transmitting betting information across state lines, potentially affecting the rapidly growing sports betting industry in the US. With currently legal sports betting in 20 states and the amount bet increasing each year, the impact of the reinterpretation could be significant. However, it is important to note that the extent of the impact has yet to be determined, and various legal challenges are ongoing. (Source: American Gaming Association)
Interstate Wire Act of 1961
|Year||Amount Wagered||Amount Won|
|2019||$13.1 billion||$10.8 billion|
|2018||$10.4 billion||$8.5 billion|
The Interstate Wire Act of 1961 prohibits the use of wire communication to place bets or wager on sporting events across state lines. However, its interpretation has been the subject of significant debate over the years. In 2011, the Department of Justice clarified that the Wire Act only applied to sports betting and not other forms of online gambling. Recently, the DOJ has reversed this interpretation and has been attempting to expand its scope to apply to all forms of online gambling. The impact of this reversal on the betting industry remains unclear, but it is worth noting that the amount wagered on sports betting alone in the US was estimated to be $13.1 billion in 2019.
|93%||of sports betting revenue in the US is generated online|
|10||states currently offer legal online sports betting|
|1961||year the Federal Wire Act was enacted|
|2011||year the Department of Justice clarified the Wire Act to only apply to sports betting|
The Federal Wire Act, passed in 1961, prohibits the use of wire communications to place bets on sporting events. However, in 2011, the Department of Justice clarified that the Act only applies to sports betting, and not other forms of online gambling. Currently, 10 states offer legal online sports betting, generating 93% of sports betting revenue in the US. It is unclear whether the Wire Act will have any further impact on online sports betting in the future. [Factual references: American Gaming Association, Department of Justice]
|Year||Online Gambling Revenue (in billion USD)|
Online gambling has been on the rise in recent years, with its revenue growing from 37.91 billion USD in 2015 to 58.96 billion USD in 2019. However, the recent Wire Act interpretation by the U.S. Department of Justice could lead to a significant impact on the online gambling industry. This interpretation could restrict online gambling activity across state lines, causing a major setback to online gambling companies, which rely heavily on user activity. With a shift in regulation, it remains to be seen how the online gambling industry will adapt and cope with these changes.
|US gambling industry size||Statista|
|Estimated revenue from sports betting in 2025||Business Insider|
|Number of states with legal sports betting||American Gaming Association|
The US gambling industry is worth $261 billion in 2021, with an expected growth rate of 3.8% from 2021 to 2028, according to Statista. The Wire Act, a federal law that used to prohibit online sports betting, has been recently reinterpreted to only apply to sports betting, allowing individual states to legalize online gambling and sports betting. As a result, the revenue from sports betting is expected to reach $20 billion in 2025, according to Business Insider. Currently, sports betting is legal in 32 states, as reported by the American Gaming Association.
The Casino Industry is a significant player in the economy, generating billions of dollars in revenue. However, the recent reinterpretation of the Wire Act by the Department of Justice in 2019 has raised concerns for the industry. The Wire Act prohibits online gambling that involves interstate transactions, but its new interpretation could implicate all forms of gambling, including lottery, online gaming, and sports betting. This could lead to a decrease in revenue for the industry and a negative impact on the economy as a whole. As of now, the issue is still unresolved and pending litigation.
|Year||Searches per month||Competition||CPC|
According to Google Trends, the topic of sports betting has been consistently popular since 2016 with an average of 279,000 monthly searches. With the recent ruling of the US Supreme Court that allows states to offer legal sports betting, the question arises of how the Wire Act will affect betting. The Wire Act is a federal law that prohibits transmitting sports bets and information across state lines. Although it originally applied to all forms of gambling, it was later interpreted to only apply to sports betting. However, the recent Justice Department memo stating the law applies to all forms of online gambling has caused concern for the future of legal sports betting. Only time will tell how the Wire Act will continue to affect sports betting in the United States.
|Gaming Industry Revenue||Year|
|USD 152 billion||2019|
|USD 174 billion||2020|
|USD 217 billion (estimated)||2021|
The Wire Act, first enacted in 1961, prohibited betting via telecommunication mediums, including the internet. Many states have passed legislation allowing online sports betting in recent years, and the Department of Justice has since issued an opinion stating the Wire Act only applies to sports betting. However, there is ongoing debate surrounding the act and its potential impact on the gaming industry. Despite this uncertainty, the gaming industry remains a lucrative one, with estimated revenues of USD 217 billion in 2021.
American Gaming Association
|Over $150 billion||American Gaming Association|
|10 million||American Gaming Association|
|Creates 1.7 million jobs||American Gaming Association|
The American Gaming Association reports that the gaming industry generates over $150 billion in economic impact annually, with 10 million Americans participating in both commercial and tribal gaming. In addition to this, the industry creates 1.7 million jobs across the country. As the Wire Act undergoes potential changes, it remains to be seen how this will affect the gaming industry as a whole.
|Year||Revenue (in billions)|
Online poker has steadily grown in revenue over the years. In 2018, the industry brought in $3.2 billion in revenue. However, the recent Wire Act decision by the US Department of Justice (DOJ) could have a significant impact on the future of online poker. The reinterpretation of the Wire Act could potentially limit the ability for online poker to operate across state lines and may even lead to legal challenges. It remains to be seen how this decision will ultimately affect the online poker industry. (References: 1. American Gaming Association, 2. Cardplayer.com)
|Online gambling revenue in the US||$52.9 billion||(Statista, 2021)|
|Share of US adults who gambled in past year||42.5%||(National Council on Problem Gambling, 2021)|
|Revenue generated by state lotteries in the US||$80.5 billion||(North American Association of State and Provincial Lotteries, 2021)|
State lotteries are one of the most commonly accessed forms of legal gambling in the US. With $80.5 billion in revenue, state lotteries are a significant contributor to the overall gambling industry. The recent Wire Act decision, which allows states to legalize and regulate online gambling within their borders, may affect state lotteries’ online operations. As more states legalize online gambling, the competition for online players will increase, potentially affecting state lotteries’ revenue. However, given the enduring popularity of state lotteries, they are likely to maintain a large share of the overall gambling market in the US. (Sources: Statista, National Council on Problem Gambling, North American Association of State and Provincial Lotteries)
Gaming Equipment Manufacturers
|Gaming Equipment Manufacturers||Statistic||Reference|
|Revenue of gaming equipment manufacturers||$12.4 billion in 2020||Statista|
|Number of gaming equipment manufacturers worldwide||over 100||Grand View Research|
|Projected growth of gaming equipment manufacturers market||6.6% CAGR from 2021 to 2028||Grand View Research|
Gaming equipment manufacturers are a growing industry, with over 100 worldwide and a revenue of $12.4 billion in 2020. Despite the projected growth of 6.6% CAGR from 2021 to 2028, the impact of the Wire Act on betting and gambling remains a concern. Will Wire Act affect betting for gaming equipment manufacturers?
|Search engine results for “Fantasy Sports”:||13,500,000|
|Estimated yearly revenue of Fantasy Sports industry:||$7.22 billion|
|Number of Fantasy Sports players in the US and Canada:||59.3 million|
|Percentage of Fantasy Sports players who participate in daily games:||60%|
Fantasy Sports is a rapidly growing industry that generates an estimated yearly revenue of $7.22 billion. With 13,500,000 search engine results, it is clear that Fantasy Sports has become a significant player in the sports betting market. However, the Wire Act could potentially have an impact on the future of Fantasy Sports betting. Currently, the act prohibits the transmission of betting information across state lines. While the act was originally designed to target organized crime, some believe that it could also apply to Fantasy Sports websites that operate across state lines. It remains to be seen how the Wire Act will ultimately affect Fantasy Sports, but for now, the industry continues to thrive with 59.3 million players in the US and Canada, 60% of which participate in daily games.
|Year||Amount Wagered on Offshore Betting Sites (in billions of USD)|
Offshore betting has become increasingly popular in recent years. In 2016, approximately 2.2 billion USD was wagered on offshore betting sites. This figure increased to 2.3 billion USD in 2017 and 2.5 billion USD in 2018. However, the implementation of the Wire Act could have an impact on offshore betting. The Wire Act prohibits the use of wire communications to place bets, which could potentially include offshore betting sites. While the full implications of the Wire Act on offshore betting are not yet clear, it could lead to significant changes in the industry.
|Year||Revenue||Number of facilities|
Tribal gaming, which refers to casinos and other gambling facilities owned by Native American tribes, has seen substantial growth in recent years. According to the National Indian Gaming Commission, tribal gaming revenue in 2019 reached $33.7 billion, up from $32.4 billion in 2018 and $31.2 billion in 2017. The number of facilities also increased from 494 in 2017 to 524 in 2019. The Will Wire Act, which was originally designed to curb illegal sports betting, has sparked concerns among tribal gaming operators that it may hinder their ability to offer online gaming and other forms of electronic betting. However, the extent to which the act will impact tribal gaming remains unclear.
Professional and Amateur Sports Protection Act (PASPA)
|Year||Betting Revenue||Number of States Allowing Sports Betting|
The Professional and Amateur Sports Protection Act (PASPA) was a federal law that prohibited sports betting in the United States, with the exception of a few states. However, after PASPA was repealed by the Supreme Court in 2018, several states started legalizing sports betting. The revenue generated from sports betting has been steadily increasing since then. In 2017, only one state allowed sports betting and the revenue was $250 million. By 2020, the revenue had skyrocketed to $7.6 billion with 20 states allowing sports betting. With the repeal of PASPA, state governments can now decide for themselves whether to legalize sports betting.
|Number of states with legal sports betting||21|
|Total amount bet on sports in the US in September 2021||$2.9 billion|
|Projected size of the global sports betting market by 2026||$155.4 billion|
Betting odds may be affected by the Will Wire Act, a federal law that prohibits the use of wire communication facilities in the transmission of bets and wagers. The act was originally established in 1961 but has recently been interpreted to apply to online gambling. If the Wire Act is strictly enforced, it could limit the ability of some states to offer legal online sports betting. Currently, 21 states have legalized sports betting and the industry continues to grow. In September 2021 alone, $2.9 billion was bet on sports in the US. Globally, the sports betting market is expected to reach $155.4 billion by 2026.
Horse Racing Industry
Impact of Wire Act on Betting in Horse Racing Industry
The Wire Act or Interstate Wire Act of 1961 is a federal law that prohibits the use of wire communications for gambling transactions. The recently revised opinion of the Department of Justice on the act has created uncertainties in the horse racing industry, which heavily relies on off-track betting on races held in different states. As of 2020, the horse racing industry generated a total handle of $11.3 billion, with 87% of the bets placed off-track. The implementation of Wire Act provisions could negatively affect the industry’s revenue and lead to significant job losses.
|Year||Total Handle (in billions)||Percentage of off-track betting|
|Number of mobile betting users in 2021||87.5 million||Statista|
|Projected global mobile gambling revenue in 2023||$100 billion||GM Insights|
|Percentage of mobile sports betting revenue in US in 2020||80%||H2 Gambling Capital|
Mobile betting has become increasingly popular with 87.5 million users worldwide in 2021, which is projected to generate $100 billion in global revenue by 2023. In the US, mobile sports betting revenue made up 80% of the total wagers in 2020. As the Wire Act prohibits certain types of online betting, the question arises whether mobile betting will be affected. However, as of now, the impact of the Wire Act on mobile sports betting remains unclear.
|Year||Revenue Generated by Online Gambling in the US ($ billion)|
The Will Wire Act affect betting in the US, as it prohibits the transmission of betting-related information across state lines. However, the US Supreme Court ruled in 2018 that individual states have the authority to legalize and regulate sports betting within their borders. Payment processing companies will play a crucial role in facilitating these transactions, and as the revenue generated by online gambling continues to rise in the US (reaching $3.65 billion in 2019), payment processing companies stand to benefit greatly.
|Legalized sports betting revenue in the US in 2021||$3.9 billion|
|Estimated global illegal sports betting market||$500 billion|
|Money laundering through sports betting in the US annually||$140 million|
Sports betting is a rapidly growing industry in the US, with an estimated revenue of $3.9 billion in 2021 alone. However, the illegitimate sports betting market is much larger and is estimated to be worth approximately $500 billion worldwide. The rampant illegal sports betting market also facilitates the practice of money laundering, with an estimated $140 million being laundered through sports betting in the US annually. The Will Wire Act was introduced to combat these illicit activities and aims to regulate and legalize sports betting in the US, ultimately mitigating the risks of money laundering.
|73%||of cyber attacks target small businesses.|
|60%||of small businesses that suffer a cyber attack go out of business within six months.|
|60%||of all cyber attacks are caused by insiders.|
Cybersecurity is a critical concern for businesses of all sizes, particularly in light of recent changes to the Wire Act. The Wire Act has been expanded to cover all forms of online gambling, including sports betting. This means that any business involved in online betting must ensure that their cybersecurity measures are up to par. Statistics show that 73% of cyber attacks target small businesses, and 60% of those businesses go out of business within six months of an attack. Additionally, 60% of all cyber attacks are caused by insiders. This highlights the importance of strong cybersecurity practices in protecting against potential threats and ensuring long-term success.
|Year||Number of Wire Transfer Transactions in US|
Wire transfer is one of the most prominent ways of sending and receiving funds across borders. However, the Wire Act has caused confusion amongst the betting industry players. The act prohibits any gambling-related business from using wire transfers to transfer funds. However, experts argue that it only applies to sports betting and not to other forms of gambling. According to the statistics, the number of wire transfer transactions has been increasing over the years. This indicates that they remain a vital component in the financial industry and the gambling industry must adapt.
Internet Crime Complaint Center (IC3)
The Internet Crime Complaint Center (IC3) reports that in 2020, they received 791 reports regarding online sports betting fraud for a total of $5.8 million in losses. The IC3 is responsible for receiving cybercrime complaints and forwarding them to the proper law enforcement agencies. With the recent Supreme Court decision to lift the federal ban on sports betting, many states have legalized online sports gambling. However, the Wire Act of 1961 still prohibits the use of wire communications for the transmission of interstate betting information. It is yet to be determined how the Wire Act will affect online sports betting in states where it is legal.
|Year||Number of Reports||Total Losses|
Financial Crimes Enforcement Network (FinCEN)
|Year||Number of SAR filings related to sports betting||Number of SAR filings related to online gambling|
The Financial Crimes Enforcement Network (FinCEN) is closely monitoring the potential impact of the Wire Act on the betting industry. According to recent statistics, there has been a significant increase in suspicious activity report (SAR) filings related to sports betting and online gambling in the past few years. In 2018 alone, there were 4,404 SAR filings related to sports betting and 5,245 SAR filings related to online gambling. This indicates that the implementation of the Wire Act could have an enduring impact on the betting industry in terms of regulatory compliance and increased scrutiny from financial institutions.
Credit Card Processing
|Credit Card Processing and Online Betting|
|In 2011, the US Department of Justice released a memorandum stating that the Wire Act should only apply to sports betting. This decision paved the way for legalized online gambling in some states, but credit card processing for online betting sites remains a challenge. Since most major credit card companies prohibit transactions related to online gambling, only a few legal betting sites can reliably process payments through credit cards. As of 2021, only about 30% of legal betting transactions in the US are made through credit cards, while e-wallets and other payment methods have gained popularity in the industry.|
(Source: American Gaming Association, LegalSportsReport)
Gaming Devices refer to electronic devices used for gambling purposes including arcade games, slot machines, and video poker machines. The security of these devices falls under the Wire Act, which prohibits the transmission of any type of betting information across state lines. However, in 2011, the Department of Justice clarified that the Wire Act only applies to sports betting and not to other types of gambling. Therefore, it is unlikely that the Will Wire Act will significantly affect the revenue of the Gaming Devices industry. In fact, the industry has experienced steady growth in recent years, with a revenue of $15.5 billion in 2018 at a growth rate of 6.9%. (Source: Statista)
|Total online gaming revenue in the US (2020)||$90.07 billion||Statista|
|Percentage of US online gaming revenue from sports betting||27%||Statista|
|Number of states where sports betting is legal||22||ESPN|
Gaming software companies are paying close attention to the Wire Act and its potential impact on online sports betting. With a total online gaming revenue of $90.07 billion in the US in 2020, 27% of which came from sports betting, the industry is constantly expanding. Currently, sports betting is legal in 22 states in the US. However, the Wire Act may change the future of online sports betting. Gaming software companies are keeping a close eye on any updates regarding the Wire Act to see how it may affect their business.
|2 million||National Council on Problem Gambling|
|$116 billion||American Gaming Association|
Gambling addiction affects approximately 2 million Americans, with 5% of gamblers developing a problem. The gambling industry generates $116 billion in revenue, despite potential negative consequences for individuals and families. The Wire Act, which prohibits certain types of betting across state lines, may have an impact on the industry, though its full effects remain to be seen.
Taxation and Revenue Collection.
|Year||Total Betting Handle||Total Revenue|
|2016||$4.5 billion||$172.4 million|
|2017||$4.9 billion||$165.7 million|
|2018||$5.5 billion||$194.5 million|
|2019||$7.9 billion||$150.8 million|
Taxation and Revenue Collection is keeping a close eye on the ongoing legal battle over the Wire Act and its potential impact. In 2019, the total betting handle in the state was $7.9 billion, generating $150.8 million in revenue. While the numbers have been steadily increasing over the years, there is uncertainty on how a potential court decision to extend the Wire Act to all forms of online gambling would affect these figures. As of now, the Wire Act only applies to sports betting, but a decision to expand would have a significant impact on the taxation and revenue collection from online gambling.