Saturday, November 16, 2024

Sports Betting Statistics: Legality By State In 2024

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For decades, Nevada was the only state with legal sports betting. Sports betting has been legal at Nevada’s casinos since 1949, and the state was also the first to authorize mobile sports betting in 2010.

That all changed in May 2018, however, when the U.S. Supreme Court overturned the Professional and Amateur Sports Protection Act of 1992, which prohibited sports betting outside of Nevada. The Supreme Court’s ruling gave states the power to legalize sports betting, opening the door for legal sports betting across the U.S.

Since then, a majority of states have legalized sports betting. Delaware was the first to do so outside of Nevada, legalizing in-person sports betting one month after the Supreme Court’s decision.

As of July 2024, there are 38 legal sports betting states, plus Washington, D.C. and Puerto Rico. Online sports betting is available in 30 states, while 22 states have legal sports betting through tribal gaming compacts.

The legal sports betting age varies by state. The minimum age requirement for online sports betting is 21 in most states, although it’s only 18 in some states. The age requirement for in-person sports betting is more evenly split between 18 and 21.

Only 12 states do not have legal sports betting, including the two most populous states in the country (California and Texas). The others are Idaho, Utah, Minnesota, Missouri, Alabama, Georgia, South Carolina, Oklahoma, Alaska and Hawaii.

As sports betting has spread throughout the nation and more people have signed up for online sportsbooks, sports betting revenue has increased as well. Americans wagered a record $119.84 billion on sports betting in 2023, up 27.5% from 2022.

Key Statistics

  • As of July 2024, online sports betting is legal in 30 states, plus the District of Columbia.
  • Sports betting of any form is illegal in California, Texas, Idaho, Utah, Minnesota, Missouri, Alabama, Georgia, South Carolina, Oklahoma, Alaska and Hawaii.
  • There is a total of 22 states where tribal sports wagering is authorized and/or operational.
  • Americans wagered a record $119.84 billion on sports betting in 2023, up 27.5% from 2022.
  • The legal gambling age in the United States varies on jurisdiction and type of gambling.
  • The most common legal age requirement for in-person sports betting is 18
  • The most common legal age requirement for online sports betting is 21

Sports Betting Landmark Decisions

In May 2018, the Supreme Court invalidated the Professional and Amateur Sports Protection Act, paving the way for legalized sports betting.

  • Since then, 38 states, plus the District of Columbia and Puerto Rico, have legalized at least one form of sports betting.

Delaware was the first state to legalize full-scale sports betting after the Supreme Court’s 2018 PASPA repeal.

Sports Betting Legality By State

This data visualization describes the sports betting legality by state, legalization year, tax rates, state restrictions and more.

With the rapid expansion of sports betting apps, sports betting has become increasingly popular in the U.S. over the last few years.

In 2023, one in five American adults said they had placed a sports bet during the previous 12 months.

This squares with America’s strong relationship with sports, especially football. More than 40% of Americans identified football as their favorite sport.

Unsurprisingly, the Super Bowl is the most wagered-on sporting event of the year. A record 68 million American adults (26%) were expected to bet on Super Bowl LVIII in February 2024, up 35% from the previous year.

Looking at sports bettors more closely, they could be grouped into four main categories:

  • The All-In: Young, highly educated men who frequently gamble on various sports for self-esteem and socialization. Characterized by extroversion, competitiveness, impulsiveness and strong numerical skills, they are intense sports fans who watch an average of 22.4 hours of sports per week.
  • The Casuals: Middle-aged, moderately educated men who gamble mainly for excitement and money, primarily on mainstream sports. Displaying moderate competitiveness, impulsiveness and numerical skills, they watch roughly 16.9 hours of sports per week.
  • Sporadic Bettors: Mostly older men who rarely gamble (only on mainstream sports) and are driven by money and excitement. They tend to be more introverted, less impulsive, less competitive and less interested in numbers. They watch about 13 hours of sports per week.
  • Non-Bettors: Middle-aged individuals with nearly 50% female representation. Less educated and with lower household income than serious sports bettors, they tend to be general sports fans and watch 9.2 hours of sports per week.

A major flaw in these groupings, however, is the lack of consideration for gambling addiction.

Trends in Sports Betting Popularity

In 2022, roughly 1 in 5 U.S. adults said they have personally bet money on sports in some way in the last 12 months, whether with friends or family, in person at a casino or other gambling venue, or online with a betting app.

Among those who follow sports at least somewhat closely, 83% say betting is not a reason for doing so, while 12% consider it a minor reason and 4% regard it as a major reason.

While 41% of Americans say that football is their favorite sport, 67.8 million American adults (26%) were expected to bet on Super Bowl LVIII – a 35% increase from the previous year.

Sports gamblers could be categorized into four main groups: the All-In, the Casuals, Sporadic Bettors and Non-Bettors:

  • The All-In: Young, highly educated men who frequently gamble on various sports for self-esteem and socialization, characterized by extroversion, competitiveness, impulsiveness and strong numerical skills, watching an average of 22.38 hours of sports per week
  • The Casuals: Middle-aged, moderately educated men who gamble mainly for excitement and money, focusing on mainstream sports and displaying moderate competitiveness, impulsiveness and numerical skills, watching 16.9 hours of sports weekly
  • Sporadic Bettors: Mostly older men who rarely gamble (only on mainstream sports), driven by money and excitement, being more introverted, less impulsive, less competitive and less interested in numbers, watching 13 hours of sports per week
  • Non-Bettors: Middle-aged individuals with nearly 50% female representation, less educated and with lower household income, resembling general sports fans and watching 9.18 hours of sports weekly

Sports betting is a revenue driver for states, bringing in millions of tax dollars each year. Sportsbooks are taxed on their revenue, while individuals must pay taxes on any winnings (tax rates vary by state).

In the fourth quarter of 2023 alone, sports betting (including bets on horse racing) generated more than $758 million in total tax revenue, a 26% increase from the fourth quarter of 2022. New York led all states in sports betting tax revenue in Q4 2023 with over $260 million, nearly five times the next closest state (Pennsylvania).

States re-invest tax revenue from sports betting into other sectors like education and government programs. Some states also use a small part of the revenue to combat problem gambling, which is rising as sports betting becomes commonplace.

States lose out on revenue due to illegal gambling and offshore betting sites. The AGA estimated that Americans wagered more than $510 billion with unregulated sportsbooks in 2022, costing legal operators $44.2 billion in gaming revenue and state governments $13.3 billion in potential tax revenue.

Sports Betting State Tax Revenue

  • In the fourth quarter of 2023, sports betting generated national state-level sales tax and gross receipts of $758,725,000.
  • Sports betting tax collections increased 25.97% between the fourth quarter of 2022 and the fourth quarter of 2023.
  • New York was the state with the largest share of the nation’s sports betting tax revenue in Q4 of 2023, with $260,406,000.
  • These are the five states with the most estimated sports betting tax revenue in Q4 2023.

Legal vs. Illegal Betting

  • In 2022, the American Gaming Association estimated that Americans bet more than $510 billion annually with illegal and unregulated operators.
  • This costs legal operators $44.2 billion in gaming revenue and state governments $13.3 billion in potential tax revenue.

Sports betting has continued to grow and expand in 2024. Two new states legalized the activity this year, with sports betting launching in Vermont in January and North Carolina in March.

Of the 12 states without legal sports betting, several are making progress toward legalization. Georgia and Minnesota came close to passing sports betting legislation in 2024 and could be next in line to legalize sports betting. There’s also substantial pressure in Missouri after 340,000 people signed a petition to put sports betting on the November 2024 ballot.

Although sports betting has downsides, like an increase in people reporting gambling problems, sportsbooks and states are working to address this issue by improving responsible gaming practices and providing some help for those who need it.

With sports betting still on an upward trajectory, the industry appears poised for continued growth in the second half of 2024 and beyond.

Future of Sports Betting Industry

  • Sports betting launched in Vermont in January 2024
  • North Carolina became the 30th state to launch online sports betting in March 2024
  • In 2024, sports betting legislation in Georgia and Minnesota came close to passing but fell short
  • In May 2024, Missouri’s Secretary of State received over 340,000 signatures to put a sports betting initiative on the November 2024 ballot
  • 14 states and D.C. earmark a portion of sports betting revenue toward problem gambling treatment

Other common uses of sports betting revenue include education programs, local governments and workforce development programs.

Sources

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