The Rise of U.S. Sports Betting
U.S. sports betting changed forever on May 18, 2018, when the Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA). The Court ruled the law unconstitutional, allowing each state to set its own sports gambling regulations without federal restrictions.
Just weeks later, on June 5, 2018, Delaware became the first state to offer single-game sports wagers post-PASPA. By the end of that year, more states followed:
- New Jersey
- Rhode Island
- Mississippi
- West Virginia
- Arkansas
- Pennsylvania
Each either launched sportsbooks or passed legislation to regulate them.
Today:
- 39 states, Washington, D.C., and Puerto Rico have legalized sports betting (retail, online, or both).
- The market has seen steady, year-over-year revenue growth since 2018.
đ Explore Sports Betting Revenue by State
Looking for in-depth data on sports betting performance in your state? Use the table below to find your detailed statistics including monthly handle, gross gaming revenue (GGR), hold percentage, and tax contributions. Use our verified data to track trends, research for a report, compare state revenue, etc. Each page provides up-to-date insights tailored to your region.
U.S. Sports Betting Annual Revenue Growth
An in-depth look at the annual growth of the U.S. sports betting market, tracking its year-over-year expansion since 2018.
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U.S. Sports Betting Monthly Revenue Growth
Monthly trends in U.S. sports betting: tracking handle, gross gaming revenue, hold rate, and tax contributions.
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Where Sports Betting is Legal in the U.S.
Map showing where sports betting is legal in the United States: Only 11 states have yet to enact sports gambling legislation.
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U.S. Gambling Industry Over Time
Monitor the expansion of U.S. gambling markets, including online sports betting, casinos, and lotteries, with up-to-date data.
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U.S. Sports Betting Demographics
The distribution of sports bettors across age demographic categories provides insights into who participates in sports betting nationwide.
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Most Popular Sports to Bet on in the U.S.
Bettor engagement by sport in the U.S. A breakdown of the most popular betting preferences.
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Annual Sports Betting Revenue By State
| State | Handle | Revenue | Hold | Taxes |
|---|---|---|---|---|
| Arizona | $7,959,647,194 | $427,397,087 | 5.53% | $42,739,709 |
| Arkansas | - | $107,275,202 | - | $13,945,776 |
| Colorado | $6,187,564,044 | $475,176,731 | 7.87% | $31,934,112 |
| Connecticut | $2,089,110,750 | $187,349,516 | 9.08% | $25,760,559 |
| Delaware | $216,240,459 | $14,585,100 | 6.99% | $8,474,813 |
| Florida | - | - | - | - |
| Illinois | $14,016,684,933 | - | - | - |
| Indiana | $5,212,332,663 | $484,278,308 | 9.48% | $46,245,605 |
| Iowa | $2,770,339,580 | $218,482,781 | 8.07% | $14,747,588 |
| Kansas | $2,546,011,854 | $177,344,811 | 7.39% | $12,745,372 |
| Kentucky | $2,626,962,943 | $272,086,697 | 10.43% | $38,621,515 |
| Louisiana | $3,699,647,883 | $461,224,426 | 12.35% | $66,014,538 |
| Maine | $523,013,468 | $55,388,488 | 10.68% | $5,538,849 |
| Maryland | $5,940,586,770 | $629,812,059 | 10.81% | $82,294,051 |
| Massachusetts | $7,401,117,705 | $670,694,019 | 8.91% | $130,196,306 |
| Michigan | $5,511,011,493 | $481,495,654 | 9.17% | $40,445,635 |
| Mississippi | $452,409,770 | $43,344,188 | 9.92% | $4,767,861 |
| Missouri | - | - | - | - |
| Montana | $66,469,999 | $7,186,894 | 11.46% | $610,886 |
| Nebraska | - | $145,682,345 | - | $29,136,469 |
| Nevada | - | - | - | - |
| New Hampshire | $784,944,454 | $78,996,303 | 9.96% | $34,840,123 |
| New Jersey | $12,774,039,219 | $1,094,630,610 | 8.70% | $155,984,862 |
| New Mexico | - | - | - | - |
| New York | $22,624,505,165 | $2,044,005,839 | 9.11% | $1,042,442,978 |
| North Carolina | $5,357,547,407 | $583,645,811 | 10.88% | $105,056,250 |
| North Dakota | - | - | - | - |
| Ohio | $8,880,965,221 | $904,187,897 | 10.25% | $180,837,579 |
| Oregon | $837,222,000 | $80,932,000 | 9.74% | $6,474,560 |
| Pennsylvania | $8,421,417,830 | $778,420,570 | 9.40% | $183,859,072 |
| Rhode Island | $483,686,264 | $38,051,914 | 8.02% | $19,406,476 |
| South Dakota | $9,236,714 | $920,918 | 10.18% | $82,883 |
| Tennessee | $5,271,379,978 | $485,802,815 | 9.22% | $97,160,563 |
| Vermont | $198,754,297 | $27,347,988 | 13.96% | $8,669,312 |
| Virginia | $6,925,832,328 | $615,044,067 | 9.01% | $92,256,610 |
| Washington | - | - | - | - |
| Washington D.C. | $461,560,894 | $53,717,642 | 11.81% | $16,317,108 |
| West Virginia | $592,642,728 | $65,866,101 | 11.21% | $5,592,747 |
| Wyoming | $209,605,809 | $22,810,652 | 11.33% | $1,405,866 |
| Total | $141,052,491,818 | $11,733,185,433 | 9.69% | $2,544,606,632 |
Follow the U.S. States' annual sports betting handle, gross gaming revenue, hold rate, and tax revenue.
U.S. States Monthly Revenue Growth
| Month | Handle | Revenue | Hold | Taxes |
|---|---|---|---|---|
| January 2025 | $14,907,291,506 | $1,363,101,673 | 11.17% | $297,850,239 |
| February 2025 | $11,697,307,943 | $1,012,561,236 | 9.75% | $215,052,414 |
| March 2025 | $13,113,913,899 | $836,208,372 | 6.79% | $187,339,412 |
| April 2025 | $10,129,926,560 | $919,683,425 | 9.44% | $216,084,805 |
| May 2025 | $10,202,819,659 | $1,153,406,849 | 11.00% | $275,674,001 |
| June 2025 | $6,528,671,131 | $1,116,220,299 | 12.51% | $208,653,189 |
| July 2025 | - | - | - | - |
| August 2025 | - | - | - | - |
| September 2025 | - | - | - | - |
| October 2025 | - | - | - | - |
| November 2025 | - | - | - | - |
| Total | - | - | - | - |
Explore the monthly sports betting growth across U.S. states using verified data from local gaming commissions.
What Impacts U.S. Sports Betting Revenue?
Many factors affect the overall growth and fluctuations in betting revenue. Two primary drivers are mobile betting apps and online sports betting, which have opened up new revenue streams and attracted both old and new bettors. Statista projects a compound annual growth rate (CAGR) of 10.73% from 2024 to 2029, resulting in a market volume of $23.80bn by 2029.
Sports Betting Regulation
The role of state and local governments is also crucial. Each state writes its regulations, which vary by state. Sportsbook revenue depends on state tax rates, state licensing fees, and state consumer protections. Gambling tax revenues are a significant incentive for all states to adopt sports gambling, as they have been a steady revenue stream for general budgets, public programs, and services.Â
Market Conditions
Market competition and economic conditions are also factors. For example, New Jersey and Colorado have shown that a competitive market with multiple legal sportsbooks (13 in New Jersey and 14 in Colorado) can increase gambling revenue by giving bettors more options. New York, however, with the highest tax rates on sports betting (51% tax rate on GGR), still has the highest sports betting handle nationwide-$22,624,505,165 in 2024, due to the sheer number of people gambling in the state and eleven professional sports teams scattered across all major leagues.
Sports Competitions
Professional and college seasons and events drive higher sports betting handles as fans bet on their favorite teams. For example, 68 million Americans (19.7% of the US population) wagered $23.1B on Super Bowl LVIII in February 2024, which the Kansas City Chiefs won.
March Madness is also a great example of how sports events can spike sports betting handle. In 2023, $15.5bn was wagered on the tournament. This was attributed to the resurgence of bracket competitions and expanded legal gambling regions in the U.S.
Trends in League Sponsorship Deals
Since the fall of PASPA, every major U.S. pro league (NFL, MLB, NBA, NHL, PGA, WNBA, and MLS) now features team partnerships with sportsbooks. League and team policies have evolved to allow category sponsors, in-venue signage, and in some cases, retail sportsbooks at stadiums/arenas.Â
NFL: What changed
- In April 2021, the NFL named Caesars, DraftKings, and FanDuel its first âOfficial Sports Betting Partners.â
- That season, the NFL allowed networks to sell up to six sportsbook ads per game (one per quarter, plus pregame and halftime), a significant shift from prior policy.
In-stadium sportsbooks are now a reality:
- BetMGM Sportsbook at State Farm Stadium (Cardinals), the first retail book at an NFL stadium, opened in September 2022.
- Fanatics Sportsbook at FedExField (Commanders) opened in January 2023 (closed on home game days per NFL policy).
Media & fan experience
- Odds and betting talk now appear regularly across pregame shows, shoulder programming, and alternate/betting-focused broadcasts, even as game-broadcast commentary remains more restrained. The ad inventory change above made sportsbook commercials commonplace in NFL windows.
Newcomers to watch in 2025
- Fanatics: completed the US$225M acquisition of PointsBetâs U.S. assets in April 2024 (including tech and Banach in-play IP). Retail footprint includes FedExField; online expansion continued through 2024â25.
- ESPN BET (PENN Entertainment): a 10-year, US$1.5B exclusive U.S. OSB licensing deal announced Aug 8, 2023; brand launched Nov 2023 and continues to integrate with ESPN products.
What this means (2025)
- Every Big-5 league now plays in the betting economy: league-level data rights and ad policies, team-level sponsorships, and select in-venue sportsbooks are entrenched.
- NFL policy has normalized sportsbook advertising in-game (within limits), while content integrations live mostly in pre/postgame and alt feeds.
- Sponsorship dollars are still growing across leagues; betting remains a top-spend category amid broader sponsorship expansion.
Marketing Strategy
Advertising by legal sportsbooks plays a crucial role in guiding consumers toward legitimate betting options and ensuring they stay within safe and regulated markets. However, an intriguing shift has emerged in recent years: while sports betting revenue shatters records, advertising spend steadily declines.
The Decline in Sports Betting Advertising Volume
Sportsbooks often advertise to build brand awareness, capture market share, and grow sports betting revenue. However, as these markets mature, the need for high levels of traditional advertising is declining.
Sports Betting TV Advertising Down One-Third Since 2021
According to the AGA reports, sports betting advertising spend, including daily fantasy sports (DFS), fell by $210 million in 2023, a 15% YoY decline. Excluding DFS, ad spending dropped by 21%.
- Across all channels, ad volume decreased 4% year-over-year, down 20% from the 2021 peak.
- The most significant decline came from television advertising, which fell by 11% in 2023 and has plummeted 33% since 2021.
Advertising Regulations that Impact Revenue Growth
In the U.S., regulations on sports betting marketing and advertising are determined at the state level, creating a patchwork of requirements for operators.
The American Gaming Association is not a regulatory body, but its Responsible Marketing Code for Sports Wagering has become a recognized framework for promoting ethical and responsible advertising practices. While the AGAâs code is voluntary, it is influential across the industry, particularly among operators aiming to demonstrate commitment to responsible marketing.
AGA Code Principles
- Legal Age Audiences: Ads target 21+ and do not appeal to minors. Digital placements must be 21+, and all promotional materials are age-restricted.
- College Advertising: Ads are prohibited on campus or in student media; partnerships are only for responsible gambling education.
- Responsible Messaging: All ads include a responsible gambling message, no ârisk-freeâ claims, and do not encourage excessive betting or financial risk.
- Digital Compliance: Platforms must have age, geolocation verification, and responsible gambling messages.
Global Sports Betting: 2025 Highlights
Online gambling, including sports betting, is booming globally. The total market was estimated at around US$78.7 billion in 2024, with sports betting making up nearly US$44.2 billion. Industry projections suggest the market will almost double, reaching US$153.6 billion by 2030, with a compound annual growth rate (CAGR) of 11.9%.
North America Sports Betting
North America has become a significant force in the sports betting industry, with the US leading the multi-billion dollar growth and Canada chipping in since its regulatory changes in recent years. Mexico also has a regulated sports betting sector that has enjoyed steady growth.
Canada Sports Betting
Ontario: The Power Center
- Ontario remains the most dynamic province in Canada for iGaming and sports betting:
- According to reports, in the fiscal year April 1, 2024âMarch 31, 2025, Ontarians wagered CA$82.7 billion through regulated iGaming platforms, marking a 31% increase from the prior year. Total GGR hit CA$3.2 billion (up 32%)
Rest of Canada (RoC) & Offshore Betting
- In the rest of Canada, most provinces offer only lottery-run platforms with limited options, driving an estimated CA$14 billion annually to offshore sportsbooks. The Kahnawake Gaming Commission remains a licensing hub for many of these sites, though without the consumer protections of Ontarioâs regulated market.
Mexico: Steady Expansion Ahead
While not as explosive as Ontario, Mexicoâs legal online gambling market continues to grow:
- Projections estimate a compound annual growth rate (CAGR) of 4.56% from 2025 onward.
- Mexicoâs federal regulatory framework, the Federal Games and Draws Law, has been in force since 1948, but newer legislative efforts are underway to address online gambling better.
Challenges of the Sports Betting Industry
The sports betting market continues to expand, with projections showing that 2.23% of the global population will be active users by 2029. Growth is driven by the legalization of sports betting in new markets, rapid technology adoption, and innovations that improve the user experience.
Yet, the industry faces key challenges that require strategic solutions:
1. Regulatory Compliance
Sports betting laws vary widely by jurisdiction. In the U.S., 38 states and Washington, D.C. have legalized sports betting as of 2024, each with its own licensing requirements, tax rates, and operational rules. This fragmented legal framework forces operators to invest heavily in legal and compliance teams to meet multi-jurisdictional regulatory standards.
2. Gambling Addiction
Estimates are that 2.5 million U.S. adults suffer from severe gambling problems, while 4â6 million are at risk. To address this, operators are under pressure to strengthen responsible gambling programs, including a more proactive approach:
- Self-exclusion tools
- Deposit and time limits
- Real-time behavioral monitoring for early intervention
- AI for early prediction of problem gambling habits
3. High Tax Rates
Certain U.S. states impose some of the highest sports betting tax rates in the world, 51% of gross gaming revenue in New York, Rhode Island, and New Hampshire. These high taxes have been cited as a factor in operator exits, with brands such as Unibet, Betway, and SuperBook pulling back from U.S. markets. High tax burdens can limit innovation, deter smaller operators, and reduce long-term market competition.
| Challenge | Key Stat (2025) | Impact on Sports Betting Industry |
|---|---|---|
| Regulatory Compliance | 39 U.S. states + Washington D.C. legalized sports betting, each with unique laws & tax rates | Increases operational costs and complexity for nationwide operators |
| Gambling Addiction | 2.5M U.S. adults have severe gambling problems; 4-6M at risk (NCPG) | Drives demand for stronger responsible gambling measures such as self-exclusion and real-time monitoring |
| High Tax Rates | 51% GGR tax in NY, RI, NH | Limits profitability, deters smaller operators, and has led to market exits by brands like Unibet, Betway, and SuperBook |
U.S. Sports Betting Revenue Trends
In 2025, 20% of U.S. adults placed a sports bet, up from 12% in 2023, spending an average of $3,284 annually. Over 80% of wagers happen on mobile, with parlays making up about 27% of bets in significant markets.
In-game betting and media integration are accelerating, and platforms like ESPN BET now link live odds directly to game feeds. Major events remain the most significant drivers, with the 2025 Super Bowl generating a record $1.39B in legal wagers.
Here are additional U.S. sports betting trends:
| Trend | 2025 Highlight | What It Means |
|---|---|---|
| Mobile Dominance | Over 80% of online gambling via mobile | Convenience, accessibility drive user adoption |
| Bettor Engagement | 20% of U.S. adults bet on sports | Growing user base with strong financial incentives |
| Popular Formats | Parlays = 27% of bets | Multi-leg bets boosting engagement and revenue |
| Media Integration | ESPN BETâs FanCenter syncs fantasy with live betting | Seamless convergence of sports media and wagering |
| Major Event Impact | Super Bowl handle hit $1.39B | Live events remain biggest customer acquisition drivers |
| Demographic Expansion | Bettor participation rose to 26%, driven by older ages | Market broadening beyond young, tech-native users |
The Future of U.S. Sports Betting
Sports betting is set for continued growth, driven by emerging technologies. Artificial intelligence (AI) is already reshaping the industry, and AI-generated analytics now track performance metrics such as a running backâs speed or an infielderâs throw velocity. Athletes and coaches use similar tools for training, recruitment, and game-day strategy, and bettors are beginning to do the same.
AI betting bots and machine learning models process massive datasets in real time, identifying patterns too complex for human analysis. This shift from intuition-based wagering to data-driven predictions could make sports betting more strategic and precise, especially as in-game betting expands.
Blockchain and Web3 may further disrupt the market. Transparent, decentralized platforms can enhance trust, while smart contracts can automate payouts, and NFT-based rewards may provide unique incentives, such as digital collectibles, for major wins or milestones.
| Technology | Use in Sports Betting | Impact on Bettors & Industry |
|---|---|---|
| Artificial Intelligence (AI) | Analyzes player performance metrics (e.g., speed, accuracy) and game trends in real time | Enables more accurate predictions and personalized betting insights |
| Machine Learning & Big Data | Processes massive datasets to detect patterns and optimize in-game wagers | Shifts betting from intuition to data-driven strategy |
| Blockchain & Web3 | Creates transparent, decentralized betting platforms; uses smart contracts for payouts; NFTs for rewards | Improves trust, automates payments, and adds new reward systems |
A Responsible Gambling Future
With sports betting now widely accessible, regulators and operators are turning to AI-driven monitoring to spot risky behavior early. U.S. states are trialing loss limits, self-exclusion programs, and stronger education campaigns to protect bettors. The goal: a safer, more sustainable betting environment that balances growth with player protection.
| Measure | Description | Impact |
|---|---|---|
| AI Risk Detection | Uses machine learning to identify harmful betting patterns in real time | Enables early intervention |
| Loss Limits | Caps on daily, weekly, or monthly spending | Prevents excessive losses |
| Self-Exclusion | Lets bettors block access for set periods | Supports recovery and control |
| Education Campaigns | Public awareness on gambling risks | Reduces stigma, promotes safer play |
| Cooling-Off Periods | Mandatory breaks between sessions | Encourages responsible pacing |
FAQs
General Questions on U.S. Sports Betting Revenue
Is sports betting legal in every U.S. state?
No. Sports betting legality is determined at the state level. As of now, more than 38 states have legalized it in some form, while others still prohibit it entirely.
Whatâs the difference between retail and online sports betting?
Retail betting takes place in physical sportsbooks at casinos or racetracks. Online betting lets users place wagers through licensed apps or websites within state borders.
How do sportsbooks make money?
Sportsbooks set odds with a built-in margin called the âvigâ or âjuice.â This ensures they collect a profit regardless of the outcome over time.
Can I use one sportsbook account in multiple states?
Only if that operator is licensed in each state, some states require separate logins or account verification for betting in their jurisdiction.
What is in-game or live betting?
Itâs wagering on events after a game has startedâsuch as predicting the next touchdown or point scoredâusing odds that update in real time.
How are winnings from sports betting taxed?
In the U.S., sports betting winnings are considered taxable income and must be reported to the IRS. Some states also levy their own taxes.
What are responsible gambling tools?
These features, including deposit limits, loss limits, self-exclusion, and session time reminders, are designed to help bettors stay in control.
Are odds the same across all sportsbooks?
No. Odds can vary between operators based on their risk exposure, betting volume, and proprietary algorithms, so comparing odds can be beneficial.
What is a parlay bet?
A parlay combines two or more wagers into a single bet. All selections must win for the bettor to receive a payout, but payouts are higher than single bets.
How do states regulate online sports betting?
Each state has its licensing authority, often the gaming commission, that oversees operator compliance, taxation, and responsible gambling requirements.
