Many sites do not have strong identity verification and are able to advertise on social media with little oversight. Tech-savvy young people in the United States can gamble on them using false identities and readily available software to mask their locations, often unbeknownst to their parents.

By last year, [Pennsylvania] was collecting $1.05 billion in taxes from digital casinos, compared with $188 million from sportsbook apps. The revenue from casino games is significant: Pennsylvania’s entire state budget is about $50 billion.

With “online casinos becoming unbelievably prevalent” there are a lot of sites out there that don’t follow proper customer protection protocols, IRS Chief Guy Ficco said.

“States are losing out by keeping this activity — that is already occurring within their borders — in the shadows.”

BBB study finds consumers confused, upset amid hundreds of unlicensed and unverified casinos and sportsbooks.