Licensed and regulated US gambling Industry sites enjoyed another record-breaking year in 2024. Can that success continue in 2025 amid some concerns about higher rates of tax and increased regulation?
Record-Breaking Year for US Gambling Sites in 2024
33 US states had a combined handle of nearly $150 billion in 2024 for online sports betting with a few more yet to release their figures.It won’t be until late Q1 of 2025 that we will know all the 2024 totals.
One notable absentee at present is Florida and that should substantially increase the current released figure. Results so far show that In terms of revenue, over $14.2 billion was made by gambling companies.
Whereas online sports betting has been made legal in nearly 40 US states, only seven have legalized online casino and poker sites. That’s the area in which the US gambling industry can expand in coming years. 2024 saw close to $4 billion in operator revenue earned it’s not just how much money they make that is important when looking at gambling revenue.
Online Sports Betting: A $150 Billion Industry Across 33 States
There is also the question of how much gambling tax revenue is being received by US states. That was close to $3 billion for 2024 and just over $2 billion from online casinos and poker sites.
Records are made to be broken and there was plenty of that happening last year. All 33 markets that report sports betting data saw record revenue figures with 28 seeing new handle records being achieved in 2024. Over half of them saw a double-digit hold being achieved.
US Gambling Industry Supreme Court Ruling
New York continues to dominate the online sports betting market especially when the NFL season is in full flow, according to NY.Bet. Along with New Jersey, they have seen over $60 billion wagered since their launches. New Jersey was quick to legalize online sports betting in 2018 after a groundbreaking US Supreme Court ruling.
That changed the law so it was the individual states, not the Federal Government who had the final say on whether or not to change gambling laws. New York didn’t legalize online sports betting until 2022 but has seen massive revenue figures since that delayed launch with over $22.5 billion wagered last year.
That produced $2.11 billion in revenue, up 24% from the previous year. The tax authorities were pleased too as they received just over $1 billion in state taxes. That’s not too surprisingly a high figure as the tax rate in the state is 51%, the highest in the US.
Gambling Industry In Illinois, Ohio, and Pennsylvania
2024 was a massive year for the gambling industry in Illinois. They had a handle of $13.9 billion (up 20% compared to the previous year) with $1.2 billion achieved, a rise of 19%. That has taken them into second place behind New York, just ahead of New Jersey which had a $12.8 billion handle and $1.15 billion revenue, both figures higher than in 2023.
Ohio and Pennsylvania finished in fourth and fifth place. For the first time in history, Nevada didn’t place in the top five and saw a reduction in handle last year.
North Carolina Sports Betting Launch
March 2024 saw online sports betting launch in North Carolina. Total wagers for them were $5.45 billion in wagers with gross revenue of $627 million.
Will we see more growth in the online casino industry? States in which they have been made legal have reported impressive results. In New Jersey, iGaming figures make up over two-thirds of the state’s online gambling revenue. They are only just below the amounts being gambled at land-based casinos in Atlantic City.
In both West Virginia and Michigan, iGaming figures generate over 80% of the online gambling revenue generated and a higher percentage of tax revenue.
Can anything derail the success of the US gambling industry?
Can anything derail the success of the US gambling industry? It’s a highly competitive industry though and companies such as Betway, WynnBet, Unibet, and Betfred have left the market after failing to secure a good market share.
One concern that gambling companies have is the amount of tax they are required to pay. We’ve already mentioned the 51% rate in New York. Illinois has increased its tax rate and Massachusetts is also looking at doing so.
2025 has already seen Senator John Keenan introduce a bill that would seriously affect the gambling industry. It aims to introduce affordability checks, limit daily spending levels, see the tax rate rise from 20% to 51%, and stop in-play betting.
At present, in-play betting is legal but not on prop bets. Betting on college teams is only allowed if they are playing in a tournament. The state has problems and responsible gambling initiatives and companies are required to pay $1 million a year towards their funding. The bill proposes doubling this figure.
There would also be more stringent advertising rules. This would see gambling ads unable to be shown during televised sports events. It will be interesting to see how the bill progresses. If it were to be passed and other states followed, then that would cause big problems for the US gambling industry.
Top Money-Making Games in the US Gambling Industry in 2024
The US gambling industry saw record-breaking revenues in 2024, and much of this success can be attributed to the popularity of certain games. While the diversity of offerings continues to grow, a few key categories dominated the market and brought in the lion’s share of revenue.
1. Online Sports Betting
Online sports betting remained the top revenue driver in 2024, generating nearly $14.2 billion across 33 states. Football, particularly NFL games, proved to be the most lucrative, with the Super Bowl and the regular season drawing massive wagers. March Madness also contributed significantly, with billions bet during the tournament. The NBA Finals and MLB playoffs were other key events that boosted the handle, showcasing the popularity of major sports among US bettors.
2. Online Casino Games
Online casino games, including slots, blackjack, and roulette, saw significant growth in states where they are legal. Slots remained the most profitable game type, contributing over 70% of total online casino revenues in states like Michigan, New Jersey, and Pennsylvania. Table games such as blackjack and baccarat also saw high engagement, with players drawn to the convenience and interactive features of online platforms.
3. iGaming
In states like New Jersey, Michigan, and West Virginia, iGaming (which includes online poker and other digital casino offerings) has become a substantial revenue generator. Online poker tournaments, in particular, saw an increase in participation, driven by operators offering larger prize pools and exclusive events. These games alone accounted for billions in revenue, with New Jersey leading the way, where iGaming revenue nearly rivaled that of land-based casinos in Atlantic City.
4. Parlay Betting
Parlay betting, which allows players to combine multiple wagers into a single bet, continued to be a significant revenue generator for sportsbooks. Parlays attract bettors with the promise of high payouts, and their high hold percentage makes them incredibly profitable for operators. NFL and NBA parlay bets were particularly popular, with countless players trying their luck on multi-game wagers during the season.
5. In-Play Betting
In-play or live betting, where players can place bets on ongoing games, surged in popularity in 2024. This category saw billions in wagers due to its dynamic nature and the increased use of mobile betting apps. Football, basketball, and soccer were the most common sports for in-play betting, with fast-paced action keeping bettors engaged throughout games.
6. Daily Fantasy Sports (DFS)
Daily Fantasy Sports remained a popular option for US players, particularly during the NFL and NBA seasons. While not as lucrative as traditional sports betting, DFS platforms like DraftKings and FanDuel reported strong revenues in 2024, demonstrating their staying power in the industry. These key games and betting options fueled the record-breaking year for US gambling in 2024. The variety of offerings, combined with increased accessibility and the legalization of online platforms, continues to make the US gambling market one of the most dynamic and profitable industries in the world.
