The American sports betting industry reached unprecedented heights in 2024, posting a record $13.71 billion in revenue. This significant increase marks a nearly 24% rise from the previous year's earnings of $11.04 billion. New York solidified its status as the nation's largest sports betting market, contributing $2.1 billion in revenue. Meanwhile, Illinois made headlines by surpassing New Jersey to become the second-largest market, with both states exceeding $1 billion in annual sports betting revenue for the first time.
North Carolina and Vermont played pivotal roles in achieving this record-breaking revenue in their inaugural year of operation. The American Gaming Association (AGA) reported that the fourth quarter of 2024 proved to be the industry's most lucrative period on record, with revenues reaching $3.66 billion. This figure represents a 7.3% increase from the previous quarterly record set in Q4 2023.
"Last year saw brick-and-mortar revenue growth slow, while online gaming and sports betting continued to grow," said David Forman.
The growth of digital platforms contributed significantly to this surge, with 30% of all commercial gaming revenue coming from digital sources in 2024. This is a marked increase from 25% in 2023 and just 13% in 2021. Legal sportsbooks handled nearly $150 billion worth of bets in 2024, reflecting a substantial 22.2% increase from 2023. Nationally, sportsbooks maintained a winning rate of 9.3%, slightly up from the previous year's hold percentage of 9.1%.
"A lot of the growth really was driven by existing markets. Even markets that have been online for some time now, we saw really good growth," added Forman.
As of February 2025, 38 states and Washington, D.C., have legalized sports betting in some form. However, only 24 jurisdictions offer full online sports betting with multiple operators. Missouri joined the ranks by legalizing sports betting through a ballot initiative in November, with plans to launch by mid- to late-summer.
The NFL season contributed significantly to the industry's success, with favorites winning at historic rates. Despite these advancements, the sports betting industry anticipates adding potentially only one new state in 2025.
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