Sports gambling has taken off in the United States ever since the Professional and Amateur Sports Protection Act (PASPA) was struck down by the Supreme Court in a landmark ruling in 2018. Since then, more and more avid gamblers have been visiting websites from SportsCasting to place their bets.
Previously a shadowy, back-alley activity, it has now become mainstream, with over 30 states reaping large financial rewards. States are reaping tax and license fee benefits from legalization, and this trend doesn't appear to be slowing down. The staggering $93 billion in bets made in the U.S. sports betting sector in 2023 will only keep increasing by the end of 2024.
In the realm of sports betting, New Jersey—the original rebel that overturned PASPA—has grown into an utter monster. Jersey has routinely topped the revenue list since hopping on the legalization bandwagon, occasionally surpassing Nevada. They took in an incredible $10.9 billion in total bets (or handle, if you want to sound sophisticated) in 2023 alone, which yielded over $725 million in earnings. Online sports wagering? Yes, they've got it down pat. Since more than 90% of bets are placed online, Jersey is an unstoppable force.
Long before Jersey arrived to change everything, Nevada was the original sports betting king. Nevada is still a big participant in the game with its storied gambling culture and Las Vegas at its center. While Jersey may have had an advantage, as reported by Statista, Nevada is faring rather well, having taken in a whopping $8 billion in wagers as of 2023. And they are doing well financially, with $550 million in revenue. Nevada maintains tradition, in contrast to jurisdictions with laws governing internet gambling. Due to the allure of Vegas sportsbooks and the influx of visitors seeking to make their bets while indulging in the casino atmosphere, most bets are still placed in person.
Pennsylvania has pushed its way up to the top of the list of states with the most earnings from sports betting. The state's overall gaming revenue reached $8.2 billion in 2023, matching Nevada's record. It's also not a slouch, with sales of about $480 million. What is the true cause of the action? Online betting. Since over 85% of bets are made online, PA's online market is extremely profitable. Furthermore, Pennsylvania generates a substantial amount of revenue for public initiatives because of its 36% tax rate—yes, greater than the majority of other states. Not only are gamblers winning, but the state government is benefiting too.
Illinois debuted in 2020 and quickly rose to prominence as a major player in sports gambling. It's vying with New Jersey for first place with an incredible $9.5 billion in wagers in 2023. Illinois, which generates around $750 million in revenue annually, has embraced internet gambling unlike any other state; more than 95% of bets are made online. Chicago is a true Midwest gambling powerhouse with its sizable population and passionate sports culture. Furthermore, Illinois is in a great position to take in wagers from residents of nearby states like Missouri and Wisconsin, where sports betting is still prohibited.
Even while New York arrived at the sports gambling party rather belatedly, it had an impact. The Empire State showed its might right away in January 2022 when it launched mobile sports betting. Yes, by 2023 New York had taken in the most astounding $16 billion in wagers—yes, the most amount in the entire nation. Thanks in part to a ridiculously high 51% tax rate on mobile bets (no other state even comes close), it led to a hefty $1.36 billion in income. Its massive population, ardent sports lovers, and aggressive sportsbook promotion caused New York to almost instantly become the industry leader.
Colorado punches above its weight class, even if it doesn't have the large population of other sports betting giants. The state has taken in almost $6 billion in wagers for 2023 since legalizing sports gambling in 2020, generating close to $450 million in income. Plus, it's achieving all of that at a very low 10% tax rate. It appears that both operators and bettors are enjoying it! Colorado has emerged as one of the top markets in the US sports betting landscape thanks to its enthusiastic population who love sports and its easy-to-use online betting choices.
More states are vying for a piece of the action as the sports betting market heats up. With their sizable populations, states like Texas, California, and Ohio are sure to make a big impression as they get ready to join in on the excitement. States are vying for a piece of the rapidly growing sports betting market, which is expected to surpass $140 billion in total bets by 2025.
New Jersey, Nevada, Pennsylvania, and New York are among the first states to benefit greatly from taxes and levies. But don't expect the rivalry to slow down—it's only getting started as other states join the fray and technology makes it simpler to place bets from the comfort of your sofa.
