US Sports Betting - By the Numbers

After May 2018, Delaware and New Jersey were quick to open up their sports betting markets and show the rest of the states that there was a very lucrative sports betting market waiting to tap into.

It has now been over 3 years since the landmark supreme court ruling in favor of New Jersey. Since 2018, several states have permitted sports betting and some have even given online sports betting the nod. Huge brands like DraftKings and FanDuel have capitalized on such decisions and become multi-billion-dollar entities. How is sports betting being regulated? Where can you legally bet on sports in the US? What does the online sports betting market look like in the US? These are some of the types of questions that we are going to be delving into today.

Which States Have Legalized Sports Betting?

The legal status of sports betting in various US states is constantly evolving. The information below is current as of the time of writing (Dec 2021) and is subject to change with the changing face of the US sports betting market. Some of the prominent 'live and legal' states are - Nevada, New Jersey, Delaware, New Hampshire, Montana, Illinois, New Mexico, New York, Oregon, Iowa, Pennsylvania, Indiana, Rhode Island, West Virginia, Colorado, Tennessee, Massachusetts, New Mexico, Mississippi and Washington D.C. Some of the prominent 'illegal' states that have denied even the possibility of legalizing sports betting (where no sports betting bill has been drafted at all) are - Wisconsin, Idaho and Utah.

Sports betting legislation did not get as much attention as it should have in 2020 as the COVID-19 pandemic brought things to a standstill and forced state governments to focus their attention on more pressing matters which included limiting the spread of the coronavirus and looking for ways to ease the financial impact caused by the extended lockdown.

During the first quarter of 2021, there are a total of 20 states that have legalized sports betting. The states that have legalized sports betting include Nevada, New Jersey, Delaware, New Hampshire, Montana, Illinois, New Mexico, New York, Oregon, Iowa, Pennsylvania, Indiana, Rhode Island, West Virginia, Colorado, Tennessee, Massachusetts, New Mexico and Mississippi and Washington D.C.

While 20 states (as of early 2021) have legalized sports betting, a number of states have also introduced a sports betting bill that has passed. As of this writing, we find that 6 states have passed a legalized sports betting bill.

Number of Active Sports Betting States

Number of US States where sports betting is live and legal - 36 States + Washington DC

Number of US States where sports betting has attained legal status but no facilities are operational yet - 5 states

Number of States where active or pre-filled legislation is in the pipeline in favor of legalization of sports betting - 2 states

Number of Inactive Sports Betting States

Number of US States with no legislation addressing sports betting - 5 states

Number of US States with dead legislation around sports betting - 11 states

Which States Don't Have Legalized Sports Betting?

While the number of states moving towards legalized sports betting continues to increase with each passing year, some states are still rigid and don't believe that they should legalize sports betting.

The situation is interesting because you will also find a few states that are keen on passing legislation to legalize sports betting but a number of conflicting interests prevent these bills from passing. One of the major hurdles to passing sports betting legislation in a state like California is that there is stiff opposition from tribal casino operators.

As many as 22 states have introduced sports betting legalization but the same has not been passed. Some of these states are not too far away from reaching an agreement and moving towards legalizing sports betting but some states have too many hurdles to cross.

These states will have to continue to make amendments to their sports betting bills and work with different stakeholders to get to a place of mutual agreement for these sports betting bills to pass.

The 22 states that have introduced sports betting bills which have not passed include Maine, Minnesota, North Dakota, Virginia, Maryland, Wyoming, Connecticut, Ohio, Nebraska, California, Kentucky, Missouri, Kansas, Arizona, South Carolina, Alabama, Arkansas, Georgia, Oklahoma, Florida, Hawaii and Texas.

Only 3 states have refused to consider the possibility of sports betting and no sports betting bill has been introduced till date. The three states are Wisconsin, Idaho and Utah.

Sports Betting in the United States - A Rundown on Some Key Figures

Nearly half of all people in the United States have placed a sports wager at least once in their lives.

According to the American Gaming Association, US citizens lawfully placed over $3 billion in sports bets in a just the span of one month (October 2020).

Sports betting increased by a staggering 53.5 percent from 2019 to $237.5 million in 2020

By October 2020, The Covid-19 pandemic scrapped the sporting calendar and the sports betting market went down (year over year) by 33.5% to $24.12 billion.

Sports betting revenue increased by more than 53 percent in 2020 when compared to 2019. Those numbers have been dented from the fact that there were not a lot of sports being played for over 3 months during the first global shutdown due to COVID-19.

For December of 2020, New Jersey reported a record $996.3 million in sports bets. The state had been setting this record for the past 5 months in a row.

The Major Baseball League is reported to have taken a loss of $3 billion due to the Covid-19 pandemic cutting short the 2020 sporting season.

Sports betting industry insiders predict that over 80% of all US States will legalize sports betting in one form or the other within the not-so-distant future.

Since the repeal of PASPA in May 2018, a total of seven states have reached the $1 billion mark in combined sports betting volume. Iowa became the eighth state to do so in February 2021, bringing in more over $143 million to push the state's combined sports handle beyond the $1 billion level.

The remaining 6 states that have already brought in over $1 billion in combined sports betting handles include New Jersey, Indiana, Illinois, Iowa, Nevada and Pennsylvania. The combined sports betting handle across all states till date is over $43 billion.

US Sports Betting: A Synopsis of Legal Sports Betting States and Revenue Generated

Legal betting in the US has continued to flourish since the Supreme Court in 2018, overturned the federal ban outside of Nevada.

Below is a brief description of the terms Handle, Revenue, Hold Recent and Taxes/State Revenue for you to better comprehend the tables that we have included for each legal state in the following sections.

  • Handle
    The total amount wagered during the course of the wagering period.
  • Revenue
    The portion of a wager that is retained by the sportsbook.
  • Hold percent
    The percentage of income that sportsbooks retain as a function of handling.
  • Taxes/state revenue
    Taxes levied by state and municipal governments; or the state's portion of revenue-sharing market revenues.

Sports Betting in the State of Nevada

Since 1949, land-based sports betting has been permitted in the state of Nevada in the United States. Nevada was given a legal monopoly on single-game betting in the United States when Congress approved the Professional and Amateur Sports Protection Act (PASPA) in 1992. This meant that collegiate sports betting, MLB sports betting, NBA sports betting, and live and off-track horse betting were all legal in the state for decades. Although sports betting is now permitted in other states in the United States, Nevada still accounts for a significant share of the overall sports betting income. Nevada's total income from sports betting was 48.31 million dollars in October 2021, down from 54.21 million the previous month.

In 2020, the overall win amount of sports betting in Nevada, the United States, was around 263 million dollars. This is a 20% reduction from the previous year. The entire money gained from gamblers is referred to as the win amount.

In 2020, there were 148 sports books in Nevada, down from 191 the previous year. The city's number of sports books has varied over the last decade, peaking in 2015.

The Super Bowl pits the champions of the National Football Conference (NFC) and the American Football Conference (AFC) against one other at the end of the NFL season. Betting on the Super Bowl has been permitted in a number of jurisdictions, and it has grown in popularity as more legal internet sportsbooks have been available. In Nevada's sports books in 2021, about 136 million dollars was gambled on the Super Bowl. In 2018, the amount of money gambled on the Super Bowl reached an all-time high.

With a 6.75 percent tax rate, Nevada has one of the lowest tax rates in the country.

Since June 2018, when the first sportsbooks opened in other states, here's a snapshot at Nevada's sports betting handle and income.

Handle Revenue Hold% State Tax
$18,723,530,831 $1,143,523,000 6.11% $77,187,803

Sports Betting in the State of New York

Upstate casinos in New York began offering sports betting in July of this year. Although all four commercial facilities, as well as a few tribal casinos, have sportsbooks, the current legislation does not allow for statewide online/mobile wagering. As a result, revenue projections for New York sports betting should be tempered.

Because of the coronavirus outbreak, New York casinos were closed from March to September 9.

Handle Revenue Hold% State Tax
$320,897,522 $37,152,208 11.6% $3,715,221

Sports Betting in Washington DC

GambetDC, a lottery platform powered by Intralot, commenced sports betting in Washington, DC on May 28.

GambetDC and its commercial operators are reported separately by the Office of Lottery and Gaming. The OLG does not break out the state's part of GambetDC earnings, however a representative stated the Lottery makes around half of overall gaming revenue.

William Hill, the first commercial operator, began operations on July 31. In August 2021, William Hill relaunched the firm as Caesars Sportsbook.

Handle Revenue Hold% State Tax
$264,601,693 $39,024,468 14.7% $2,862,328

Sports Betting in the State of New Jersey

There are several reasons why sports betting in New Jersey has become popular. One of the major reasons is that Caesars NJ has a strong online betting presence, accounting for more than 80% of the total volume.

Handle Revenue Hold% State Tax
$18,992,128,140 $1,349,911,988 7.1% $169,472,358

Sports Betting in the State of Pennsylvania

Sports betting in Pennsylvania is likely to become more popular in the coming months and years. Sports book apps were launched in 2019, and seem to be taking some of the sheen off retail sportsbooks that the state has depended on for revenue. The volume of app downloads and income is expected to significantly increase in the near future.

The main hurdle is the state's high business costs, which include a 36% effective tax rate and a $10 million license charge.

Handle Revenue Hold% State Tax
$10,128,765,090 $766,799,816 7.6% $188,790,723

Sports Betting in the State of Delaware

The first state to offer sports betting, other than Nevada, was Delaware, which was launched with much fanfare back in June 2018. Only three state casinos were permitted to conduct wagers while lottery dealers were authorized to sell parlay cards for football betting. It is important to note that there is no mobile betting so far, despite the fact that the state has deemed it legal.

Handle Revenue Hold% State Tax
$431,710,775 $65,958,635 15.3% $43,788,086

Sports Betting in the State of Mississippi

Ever since 2018, casinos have been allowed to conduct sports betting in Mississippi. Online sports betting is only available at the casinos and is not permitted outside of their premises. There are as many as 24 sportsbooks currently active.

Handle Revenue Hold% State Tax
$1,419,335,176 $165,997,926 11.7% $19,919,751

Sports Betting in the State of Rhode Island

Rhode Island has opted for the revenue sharing model since it authorized sports betting in 2018. The state manages sports betting through Caesars Sportsbook and two casinos. Online betting was made legal in the state in 2019.

Handle Revenue Hold% State Tax
$828,272,945 $73,775,716 8.9% $37,625,615

Sports Betting in the State of West Virginia

Sports betting became legal in West Virginia in 2018, owing to a statute passed before the federal ban was overturned.

The state has also authorized internet gambling, but there were some issues at first. The only live operator, Delaware North, had to shut operations. Two retail sportsbooks also closed, leaving only three sports betting options in the state.

In August 2020, sportsbook applications will be available again.

Handle Revenue Hold% State Tax
$1,174,563,286 $94,855,033 8.1% $9,485,503

Sports Betting in the State of Arkansas

Oaklawn Casino in Arkansas began offering sports betting in July of 2019. Saracen Casino began offering sports betting in October 2019, while Southland Casino began accepting wagers in January 2020.

Land-based casinos are the only places where you may wager on sports.

Handle Revenue Hold% State Tax
$104,105,744 $14,107,666 13.6% $1,952,689

Sports Betting in the State of New Hampshire

The DraftKings Sportsbook mobile app, which was introduced in late December 2019, was the first to provide sports betting in New Hampshire.

DraftKings Sportsbook has the option of opening retail sites around the state. Intralot plans to implement sports betting through the New Hampshire Lottery in the future.

Handle Revenue Hold% State Tax
$827,196,598 $58,697,485 7.1% $26,943,835

Sports Betting in the State of Michigan

Michigan sports betting began accepting retail bets in March 2020, just as sports leagues were beginning to close due to the coronavirus outbreak.

Casinos did not reopen until August 5th, with a maximum occupancy of 15%. They reopened on November 17 and remained closed until December.

On January 22, Michigan became the first state to offer online sports betting. After the retail findings, Michigan's regulator will most likely announce the online results.

Handle Revenue Hold% State Tax
$3,582,039,265 $301,571,473 8.4% $10,199,511

Sports Betting in the State of Montana

Montana sports betting began in early March 2020, with retail and on-site mobile, just before the epidemic was ready to shut down sports leagues.

The profit share between the Montana Lottery and sports betting provider Intralot is not made distinct.

Handle Revenue Hold% State Tax
$61,008,368 $8,151,057 13.4% NA

Sports Betting in the State of Colorado

In the midst of the coronavirus epidemic, Colorado sports betting began on May 1, 2020.

The tax rate on net sports betting revenues, which is revenue less excise taxes paid and free bets, is 10%.

Handle Revenue Hold% State Tax
$4,096,391,917 $264,401,468 6.5% $11,913,563

Sports Betting in the State of Illinois

Sports betting in Illinois began on March 9 but was prohibited on March 16. It wasn't until June 18 that the first online wager was accepted.

Handle Revenue Hold% State Tax
$7,334,929,102 $538,213,97 7.3% $85,900,570

Sports Betting in the State of Tennessee

Tennessee sports betting opened as a mobile-only market on November 1, 2020.

Handle Revenue Hold% State Tax
$2,335,244,523 $205,444,908 8.8% $35,543,918

Sports Betting in the State of Virginia

When FanDuel Sportsbook went live on Jan. 20, 2020, it became the first online-only sports betting site in Virginia.

Handle Revenue Hold% State Tax
$2,392,572,691 $206,043,507 8.6% $14,377,724

Sports Betting in the State of Wyoming

DraftKings Sportsbook and BetMGM were the first to provide online-only Wyoming sports betting as on Sept. 1, 2021.

Handle Revenue Hold% State Tax
$17,090,127 $1,835,617 10.7% $3,623

Sports Betting in the State of South Dakota

South Dakota legalized sports betting on September 9, 2021. Only Deadwood and tribal casinos were allowed to provide retail betting.

Handle Revenue Hold% State Tax
$1,258,402 $169,357 13.5% $15,242

Sports Betting in the State of Connecticut

After a week of testing, online sports betting became available in Connecticut on October 19, 2021. The two tribal casinos established temporary retail sportsbooks on September 30, while the Connecticut Lottery began offering retail betting on October 25.

Handle Revenue Hold% State Tax
$186,370,653 $21,558,376 11.6% $1,079,722

Sports Betting in the State of New Mexico

Sportsbooks are now available in several indigenous casinos. However, there are no recent income numbers for these casinos.

Handle Revenue Hold% State Tax
Not Available Not Available Not Available Not Available

Sports Betting in the State of Iowa

In August of this year, Iowa sports betting commenced both retail and online/mobile sports betting together.

Handle Revenue Hold% State Tax
$2,562,422,695 $161,422,996 6.3% $11,918,378

Sports Betting in the State of Indiana

Sports betting in Indiana began in September 2019, with the first online and mobile applications following a month after.

Handle Revenue Hold% State Tax
$5,571,665,625 $460,276,447 8.3% $43,788,086

Sports Betting in the State of Oregon

In August of 2019, the tribes of Oregon began offering sports betting. The state lottery began selling its own online/mobile product not long after. Tribal sports betting is not included in the data below.

Handle Revenue Hold% State Tax
$561,374,229 $50,797,207 9.0% NA

Covid-19 Has Pushed Sports Betting Legalization

While COVID-19 turned out to be a huge problem for most states in America, it turned out to be a blessing in disguise for the sports betting market. When the land-based casino industry and retail sportsbooks shutdown in 2020 due to the lockdown measures, punters were forced to go online to get their sports betting action.

A number of online and mobile sportsbooks confirmed an increase in player traffic and an uptick in new subscribers during 2020. While land-based sports betting revenues declined for these sportsbooks, their online betting revenues increased significantly which offset their losses.

Multiple states that were closed to sports betting legislation and those that were sitting on the fence were forced to consider sports betting legalization seriously in 2021. This was because state governments realized that they needed to do something after the COVID-19 impact and create more jobs and get more money flowing into the economy as well as the state coffers.

The sports betting market continues to be a lucrative industry in the United States and states are now keen to tape into this lucrative market. Morgan Stanley estimates that the sports betting market in America will generate over $7 billion in 2025. To give you a better picture of the significant growth that this entails, sports betting generated less than $900 million in 2019.

Land Based Sports Betting

Almost all the states that have legalized sports betting have land-based sports betting or retail sports betting. This allows punters to walk into the retail sportsbook, register an account and place their bets on the sporting action. The one state that has no land-based sports betting option is Tennessee.

At the time of this writing, over 300 retail sportsbooks are spread across these 20 different states. That number is expected to grow further before the end of 2021. The majority of these retail sportsbooks are found in Nevada as the state is reported to have more than 200 of the total 300 sportsbooks.

All of the other states that have legalized sports betting allow punters to place their bets in person. However, land based sports betting is definitely not as popular and online sports betting or win real money online casinos where players looking for USA no deposit bonus casinos can take advantage of free spins and exclusive bonuses.

New York, currently, is the sole state which allows legal sports betting in land-based sports betting facilities, but not online. The massive surge in the sports betting market has come predominantly via the internet. The online sports betting market has over 100 competitors that range from fantasy sports betting to straight out online sportsbooks, while most of these are just websites, some are available to download as mobile apps. A few sports betting brands that influence the online sports betting market include the likes of DraftKings, FanDuel, BetMGM, BetAmerica, William Hill, PointsBet, Fox Bet and SportsBetting.com

Online Sports Betting

The biggest contributor to sports betting growth and sports betting revenues has undoubtedly been the online sports betting market. New York is the only state that offers land-based sports betting but no online sports betting.

Online sports betting has generated the bulk of revenues for most states because bettors have found it extremely convenient to register online and place their sports bets from the comfort of their homes. The fact that you can turn your tablet and smartphone into a handheld sports betting device, makes it easier for bettors to place their bets while on the move and not miss out on any of the sports betting action.

Over 100 online sportsbooks make up the total market share. Some of the biggest online sports betting operators currently dominating the U.S. market include DraftKings, Fox Bet, FanDuel, BetMGM, PointsBet, William Hill, BetRivers, BetAmerica and SportsBetting.com

The future is definitely in online and mobile sports betting. Betting operators are realizing this and catering their offerings and promotions to appeal to the mobile and online sports betting audience. States that are in the process of passing sports betting legislation are making it an emphasis to push for online and mobile sports betting legalization.

U.S. Fantasy Sports - Overview And Key Numbers

In 2019, the market size of the fantasy sports services industry in the United States reached $8.48 billion, up from $8.47 billion the previous year. The global coronavirus pandemic, on the other hand, was expected to reduce the sector's market value by 8.4% in 2020.

From 2009 to 2019, the number of fantasy sports participants in the United States increased. In 2019, there were 45.9 million fantasy sports players in the United States, according to the source.

In the United States, the number of enterprises in the fantasy sports service industry rose year over year. There are 646 enterprises in this industry in 2019, compared to 587 businesses the previous year. In the following two years, the number of enterprises in this industry is expected to rise even more.

In the last 10 years, the employment rate in the fantasy sports service business in the United States has varied up and down. This industry employed around 52.84 thousand people in 2019, up from 49.56 thousand the previous year. As a result of the coronavirus pandemic, employment in this area is expected to decline in 2020.

Sports That Get Lots Of Betting Action

The Supreme Court of the United States removed the federal ban on sports betting in May 2018. Many states have authorized sports betting since that decision. Some sports, however, are more popular for betting than others. When asked in April 2019, a year after the federal ban was lifted, 61 percent of sports fans said they would bet on the National Football League (NFL), putting it at the top of the list of sports and leagues on which they would wager.

Football was the sport in which the most bets were placed in the United States in 2017. A stunning 77 percent of those polled admitted to betting on football at least once in their lives.

The four biggest sporting leagues in America tend to get most of the sports betting action. The National Football League (NFL), National Basketball Association (NBA), Major League Baseball (MLB) and National Hockey League (NHL) keep the sportsbooks busy as they draw betting action during their round robin games and a lot of betting action during the playoffs.

Mixed Martial Arts (MMA) is also getting a lot of traction with every passing month as the Ultimate Fighting Championship (UFC) which is the premier MMA promotion in the world continues to stage fight cards with almost every weekend. Bellator which is the second most popular MMA promotion in the world is also generating interest in MMA betting.

Sporting leagues which have in the past opposed sports betting legislation have now made a U turn and are pushing for sports betting legislation. Some of these sporting leagues are also keen on tapping into the sports betting market and have entered into agreements with different sportsbooks to provide them with exclusive real time data and stats in exchange for a fee.

The NBA for instanced has entered into 6-year contract with Sportsradar for $250 million and NASCAR signed a betting partnership deal with BetMGM. Sporting teams like the Philadelphia Eagles (NFL) have partnered with Unibet, Dallas Cowboys (NFL) with WinStar Casino and the Philadelphia 76ers have joined forces with Caesars.

US Sports Betting Revenue In 2018-2019 And An Estimate Up To 2028

In the United States, the sports betting market is expanding at a rapid pace. Many states have already legalized the activity, and more are on the verge of doing so. Sports betting income is expected to reach 2.1 billion dollars in 2021, and by 2028, it will have risen to more than 10 billion dollars.

Conclusion

The sports betting market in the United States will continue to grow at an exponential rate in the next couple of years. Even though there is still some uncertainly over the pandemic and when the world will truly get over it, online sports betting options can easily overcome challenges caused, if any, by the pandemic.This is because 20 states still need to get their sports betting legislation sorted out and their betting markets launched. Some of these states like Texas and California have massive betting markets and could cause a massive spike in these betting numbers.

Some Frequently Asked Questions About Sports Betting

FAQ

How many sports bettors win their bets?

Even the most seasoned sports bettors have a victory percentage of just about 55%. They usually win 53 percent to 54 percent of the time. You'd expect the percentages would rise to at least 60%, but this is just not the case in the long run.

Is sport betting a good way to make profits?

Yes, sports betting can undoubtedly be profitable, is the quick response to the question. The lengthy answer, on the other hand, is quite complicated.

In summary, if you're clever, patient, and have a lot of expertise, sports betting may be profitable. Despite the fact that randomness still plays a factor, this sort of betting is far more skill-based than, say, casino betting.

Which is the best sport to bet on for winning money?

In the United States, sports bettors and just about everyone else is enthralled with football. When individuals are passionate about a sport, they continue to learn about it. As a result, the most profitable sport is the one with which you are most familiar.

It's football for some. Basketball is the sport of choice for some, while soccer is the sport of choice for Europeans. That's the gist of it.

Can I use Venmo to bet on sports?

No, it's not legal. You won't be able to make bets using Venmo at most legal sportsbooks around the country.

What does a sports betting model entail?

A sports betting model is a computer programme that can find impartial selections and calculate the likelihood of all possible outcomes in a game.

A model's purpose is to reveal profitable betting chances by being more accurate than a bookmaker on a functional level.

The purpose of a personal betting model would be to construct a better, more efficient model than the one used by bookmakers to calculate betting lines.

What is the difference between a sportsbook and a sportsbetting exchange?

Instead of betting via a bookmaker, bettors can bet against each other on a sports betting exchange.

Because sportsbooks normally collect a modest fee on gains from consumers, if a sportsbook enables a betting exchange, it won't have to worry about specific sides.

Are there any good sportsbetting tips for newbies?

To be successful in sports betting, one must devote time to studying and researching numerous facets of a contest.

While it is possible to make a profit in sports betting, doing it on a regular basis is difficult. Before getting started, a gambler should be familiar with the most common words used in the sports betting field. Then comes the research, which might include looking at team tendencies, odds, or shopping around for the best lines.

To be a successful bettor, one must win a few bets based on a guess and then keep winning. There's a reason sports betting is a multibillion-dollar industry in which states earn handsomely. It's important to note that just a tiny fraction of sports bettors make money over time.

Do I have to pay taxes on my sportsbetting winnings in the US?

When PASPA was repealed in 2018, states began to legalize sports betting and levy various income taxes. Each state has its own tax regulations and rates, similar to gambling rules in general. You can find the tax rate for each legal state above in this article where we have listed the tax rate as one of the table columns.

What does the term 'hedge' mean in sportsbetting?

A hedge is a strategy for lowering risk and ensuring profits on a certain wager. It refers to wagering the opposing side of your initial wager in order to either try to even the game or lessen the original stake's negative risk.

What does the term 'arbitrage' mean in sportsbetting?

In sports betting, arbitrage is when a player bets on all conceivable outcomes of a game at odds that ensure a profit no matter what happens.

When there is a difference in odds, an arbitrage bet may typically be placed to make a profit by covering all possible outcomes. When bookmakers disagree on odds or the market makes a mistake, this is done.

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John Holmes Written by John Holmes