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Casinos May Gain an Annual $190 Billion in Sports Betting

If U.S. casinos in Nevada and other states plunged into the Internet gambling market, they would likely gain up to $190 billion annually in sports bets, said Koleman Strumpf, an assistant professor of economics at the University of North Carolina, according to

Strumpf opined that land-based casinos could capture a large share of the wagers placed on offshore Web sites – about $20 billion per year, as well as grab about half of the $80 billion to $380 billion market in illegal sports betting.

"The biggest advantage [the casinos] have is a known brand name," Strumpf said. "My guess is the big guys in Nevada could get 50 percent of this market if they went on the Internet." Yet he said it’s not going to happen anytime soon.

As a visiting scholar at the Cato Institute, a non-profit libertarian think tank in Washington, D.C., Strumpf is researching the economics of Internet gambling and online file sharing.

"The question of how individuals make decisions when there is risk and uncertainty is a huge, outstanding topic in economics," Strumpf said. "There hasn’t been a lot of empirical research about how people make decisions about gambling."

He considers that Internet gambling should be legalized and regulated because there is no way to stop it.

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