U.S. States Reap Record Revenues from Booming Sports Betting Industry

Earlier this year, a staggering 67.8 million American adults placed bets on the Super Bowl, representing more than a quarter of the U.S. adult population and a 35% increase from the previous year, according to the American Gaming Association. This marks a significant milestone in the rapidly growing sports betting industry, which has dramatically transformed since the U.S. Supreme Court’s 2018 decision to strike down the Professional and Amateur Sports Protection Act.

The Rapid Expansion of Sports Betting in the U.S.

For 25 years, sports betting was largely confined to most popular forms of gambling in the United States. Today, 38 states and Washington, D.C., offer legal sports betting, whether online or in person.

Sports betting encomes a variety of activities, from wagering on basketball games to betting on horse races. According to The Washington Post /investors-and-gambling-executives-forecast-us-sports-betting-to-make-8bn-by-2025/">fastest-growing source of state tax revenue. The tax revenue generated from sports betting s various state resources, including infrastructure projects, public education, law enforcement, and gambling addiction programs.

States Leading in Sports Betting Revenue

At the end of last year, New York State emerged as the leader in tax revenue from legal sports gambling, raking in $260 million. This made New York the top-earning state in the fourth quarter, as reported by the Census Bureau’s quarterly summary of state and local tax revenue. The Northeast generally reported higher revenue amounts from sports betting compared to other regions in the country.

Since 2021, taxation on sports betting has quadrupled, reflecting the industry’s explosive growth and significant contribution to state coffers.

States with the Highest Betting Handles

Since the legalization of sports betting in 2018, New Jersey has reported the largest total pool of money wagered on sports bets, amounting to $51.6 billion. Remarkably, New Jersey outpaced Nevada, traditionally synonymous with gambling, in total wagers back in 2021.

Operators have generated $30 billion in gross revenue from over $360 billion wagered. New Jersey came out on the top with over $50 billion in handles, while Massachusetts rounds out the list with a handle of $10 billion. The states with the largest handles for sports gambling are:

1. New Jersey
2. New York
3. Nevada
4. Illinois
5. Pennsylvania
6. Colorado
7. Arizona
8. Indiana
9. Virginia
10. Michigan
11. Tennessee
12. Ohio
13. Iowa
14. Maryland
15. Massachusetts

Demographics of Sports Bettors

A YouGov survey estimates that 26% of Americans have placed bets on sports at some point, with 10% reporting they wager money online. Men are more likely than women to place sports bets, with 35% of men having bet on a sporting event compared to a lower percentage of women. Additionally, Hispanic and white individuals are more likely to bet on sports compared to Black adults.

The continued growth of sports betting in the U.S. highlights its increasing acceptance and integration into mainstream culture. As more states consider legalizing sports betting and more Americans engage in this activity, the industry is poised for even greater expansion and revenue generation in the years to come.

Source:

Sports betting is legal in 38 states now, but these residents wager the most, USA Today, June 29, 2024.