Sports establishments in Nevada surpass $2 billion in earnings following the PASPA overturn, signifying significant growth in the post-PASPA market.
In the rapidly growing U.S. sports betting industry, four states have been leading the pack since legalization and expansion: New York, New Jersey, Illinois, and Pennsylvania. Illinois, for instance, reported over $1.2 billion in gross sports betting revenue in 2024 alone, while New York collected over $1 billion in sports betting tax revenue annually.
However, no single state has officially surpassed the $2 billion mark in sports betting gross revenue since June 2018 on an annualized basis. Although cumulative totals in some states may exceed $2 billion, this is not the standard measurement used for annual or rolling comparisons. For example, Illinois’ cumulative gross revenue likely surpasses $2 billion over several years post-legalization, but not in any single year.
Nevada, a traditional leader in sports betting, has been surpassed by several states in handle and gross revenue due to the rapid expansion of online betting elsewhere. Nevada’s sports betting handle has typically ranged from about $5–8 billion annually in recent years, with gross revenue much lower than states like New York, New Jersey, and Illinois. Gross revenue in Nevada is usually below $1 billion per year, making it less than what some other large states now generate annually.
Here is a summary table of the 2024 gross revenue estimates and notes for some key states:
| State | 2024 Gross Revenue (Estimate) | Notes | |------------|------------------------------|-----------------------------------------------| | Illinois | $1.2 billion | 2024 gross revenue; cumulative likely >$2B | | New Jersey | ~$1 billion | Recent annual revenue; cumulative >$2B likely | | New York | Tax revenue: $1B+ | Handle much higher; revenue not fully listed | | Nevada | <$1 billion | Traditional leader, now outpaced |
October 2023 saw significant developments in Nevada's sports betting revenues. Football revenue increased by 44.7% compared to the previous October, reaching $48.3 million. The house win rate for football was 8.8%. Mobile sportsbooks in Nevada had a 6.5% win rate on $536.9 million worth of accepted wagers, the second-highest monthly hold recorded since 2020.
Despite the growth in football revenue, Nevada's sports betting handle decreased by 11.5% from the same month in 2021, reaching $815.7 million. Baseball revenue, on the other hand, saw a 21.1% year-over-year drop in October 2023, with revenue just shy of $9.5 million. However, the house win rate for baseball was the highest of any October post-PASPA since 2019, with a 10.5% hold.
Retail sportsbooks in Nevada claimed $33 million in revenue in October 2023, with a 11.9% win rate. The year-to-date tax revenue from sports wagering in Nevada is $25.7 million, ahead of last year's pace.
In conclusion, while states like New York, Illinois, and New Jersey have rapidly grown and now boast some of the highest sports betting gross revenues in the country, Nevada’s annual sports betting revenue is currently less than that of these new market leaders. Nevertheless, Nevada remains an important player in the sports betting industry, with its unique retail sportsbook scene and rich history in the field.
- In the sports betting industry, the states of New York, New Jersey, Illinois, and Pennsylvania have been leading the growth since legalization and expansion.
- For instance, Illinois reported over $1.2 billion in gross sports betting revenue in 2024 alone, while New York collected over $1 billion in sports betting tax revenue annually.
- However, no single state has officially surpassed the $2 billion mark in sports betting gross revenue since June 2018 on an annualized basis.
- Alabama, for example, may have a cumulative gross revenue that exceeds $2 billion over several years, but not in any single year.
- Nevada, traditionally a leader in sports betting, has been surpassed by several states in handle and gross revenue due to the rapid expansion of online betting elsewhere.
- Gross revenue in Nevada is usually below $1 billion per year, making it less than what some other large states now generate annually.
- October 2023 saw significant developments in Nevada's sports betting revenues, with football revenue increasing by 44.7% compared to the previous October, reaching $48.3 million.
- Despite the growth in football revenue, Nevada's sports betting handle decreased by 11.5% from the same month in 2021, reaching $815.7 million.
- In contrast to football, baseball revenue saw a 21.1% year-over-year drop in October 2023, with revenue just shy of $9.5 million.
- Retail sportsbooks in Nevada claimed $33 million in revenue in October 2023, with a 11.9% win rate, making it a significant contributor to the sports betting industry in Nevada.
