For decades, Nevada remained the only US state offering legalized sports betting. The Silver State has been offering legal casino gaming since 1949 and allowed the country’s first mobile sports betting platform in 2010.
However, all that changed with the 2018 Supreme Court ruling overturning the 1992 Professional and Amateur Sports Protection Act that prohibited sports gambling outside Nevada.
The 2018 Supreme Court ruling opened the doors to legalized sports betting across the country, with Delaware being the first state to follow in Nevada’s footsteps. Since then, 38 states in the US have embraced legal sports betting and the industry’s revenue has increased significantly. In 2023 alone, statistics show Americans collectively wagered $119.8 billion on sports, an incredible surge of 27.5% from 2022.
But what’s fueling this meteoric growth in the American sports betting market? Here is a look at the legality of sports betting in different states, market trends, and statistics shaping the industry.
Legal sports betting across the US states(As of August 2024)
As of August 2024, 38 states in the US have legalized sports betting, including Puerto Rico and Washington DC. 30 of these states support online sports betting through mobile apps and websites, including New Jersey, Arkansas, North Carolina, Rhode Island, Vermont, Washington DC, and Virginia. Additionally, 22 states including New Mexico, Wisconsin, and North Dakota have legal sportsbooks through Class III tribal gaming compacts.
While most states have legalized sports betting, 12 states have prohibited the activity, including two of the most populated states in the country, Texas and California. The others include Utah, Minnesota, Idaho, Alabama, Missouri, Georgia, Oklahoma, South Carolina, Hawaii and Alaska. However, Missouri is expected to legalize sports betting in November following their recently approved ballot initiative on the matter.
Key trends in sports betting popularity in the US
While sports betting is increasingly growing popular in America, many people still enjoy watching sports without wagering on them. In fact, statistics show that 83% of Americans closely follow sports for the thrill of the games, while 12% consider betting as a minor reason. However, 4% of those who closely follow sports consider betting a major reason for doing it.
Sports betting has become a major revenue driver for US states, raking in millions of dollars every year. Bookmakers operating in states that have legalized sports betting pay taxes on their revenue, while punters pay taxes for their winnings.
In the last quarter of 2023, sports betting activities generated over $758 million in tax revenue across all states. That was a 26% increase compared to the last quarter of 2022. New York led other states in the tax revenue collected in sports betting, accounting for over $260 million of the revenue collected. That’s almost five times compared to the second-ranking state, Pennsylvania.
The states re-invest the revenue collected from sports betting in other sectors such as education, infrastructure, and other government programs. Some US states are also using a portion of the tax revenue to fight problem gambling, which is a growing concern as sports betting becomes popular. However, some states are losing out on tax revenue because of offshore betting sites and illegal gambling.