Money that stops leaving households
Unlike the prediction market question, there is no cheaper channel waiting on the other side of this one. Most of the country has no legal online casino at all, so a ban does not move the spending — it mostly ends it. The money stays where it was.
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Value
The stream is money staying in a household rather than reaching an operating company, priced at the middle of the scale like any other money. What the players keep is counted here at what it is worth to them, and what the operators no longer receive is counted separately, on the other side of this evaluation, because the two ends of a payment are not worth the same thing. The spending concentrates among people who can least afford it, which is why the euro they keep counts above face value. The enjoyment they lose along with the spending is real and is counted as its own argument against this measure rather than netted away here. The value is the middle of the scale, because the stream is money and the position of the people holding it is priced in the Impact.
Impact
Players in the states that have not banned the model lose about 3.1 billion euro a year to sweepstakes casinos once prizes are paid out — the analysts' 2026 base case of 3.6 billion dollars of net revenue [4]. What moves is what is lost, not what is spent on coins: most coin purchases come back as prizes. Where the losses go when the model is closed decides the size. Only seven states license online casino games, so for most players there is no licensed alternative within reach; a fifth is assumed to move offshore, another fifth to sports betting or a licensed casino where one exists, and the remaining three fifths simply stops — 1.86 billion euro a year staying with households. That money counts at 1.3 rather than face value, because the losses concentrate among people under financial pressure. Losing a large share of one's spare money hurts more per euro than losing a small one, and for the few heaviest players it would count higher still; at the average of this group, about a thousand euro a year against a household income near fifty thousand, the step is not reached and the standard figure is used. That gives 2.42 billion euro a year. The Impact is the largest in this debate and it is large for a structural reason: this is one of the few gambling measures with no cheaper channel on the other side of it.
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| Net player losses to sweepstakes casinos net revenue after prize redemptions [4], at 1.15 dollars to the euro (setting, range 1.05 to 1.25); the analysts' base case already assumes operators leave California and the other states that have banned the model [4] | 3.6 billion dollars a year, 2026 base case | 3.1 billion euro | |
| × | Share that simply stops Setting, range 30 to 80 percent: a fifth moves offshore and a fifth to sports betting or a licensed casino; online casino games are legal in only seven states [2] | 60 % | 1.86 billion euro |
| × | What the money is worth to the households keeping it the losses concentrate among people under financial pressure; at about a thousand euro a year against a household income near fifty thousand, the step to a higher figure for very large personal losses is not reached [6] | 1.3 | 2.42 billion euro |
| ÷ | Normalised Impact scale of this evaluation | 500 million euro a point | 4.84 |
Plausibility
The market size is an industry estimate rather than a regulatory return, which is the main weakness: nobody files anything, so the 3.6 billion dollar figure is an analyst's base case, already revised down as states acted, with a low case of 2.8 and a high case of 4.55 billion [4]. The counterfactual is the current position in the states that have not banned the model. What is genuinely estimated is where the spending goes, and the assumption that three fifths of it stops rests on a structural fact rather than a measurement: online casino games are legal in seven states and nowhere else, so the substitute that exists for sports betting does not exist here. The confounder that would matter is offshore substitution, which is booked as its own argument against this measure rather than discounted here. Several states have already banned the model, so this could be measured and has not been. Reverse causation does not arise. The Plausibility is at the upper end of what a projection can carry: the structure is clear and the market figure behind it is an estimate rather than a return.
Counterfactual: the current position in states that have not banned the model. Design: definitional — closing a product ends the spending on it; the estimated elements are the market size, which is an analyst estimate rather than a regulatory return, and where the spending goes. Confounder: offshore substitution, booked as con-2 rather than discounted here. Direction: not applicable. Ceiling: a projection carries 6.0 at most, and that binds. The absence of a licensed online casino in 43 states is the structural fact carrying the three-fifths assumption. Movement: this is one end of a payment; the other end is con-4, same amount and same plausibility.