The online gambling industry in the United States has experienced another record year.
According to a recent LSR report, licensed sportsbooks across 33 markets handled approximately $150 billion in bets, yielding over $14 billion in revenue.
This surge in activity provided a substantial financial boost to governments, with state and local entities collecting nearly $3 billion in taxes, and the federal government receiving an additional $375 million.
Meanwhile, online casinos and poker platforms contributed significantly to the overall figures, generating $8 billion in revenue and providing $2 billion in taxes from just seven states where they are operational.
Sports Betting Helped By New Markets
More than 95% of legal sports betting was conducted online in 2024, and adding a couple of new markets helped to fuel the numbers.
In March, North Carolina's rollout of online sports betting emerged as a major growth driver, culminating in $5.45 billion in total wagers and nearly $630 million in gross revenue by year-end, despite its late start.
Meanwhile, Washington D.C. launched online sports betting shortly after Independence Day, allowing anyone over 18 with internet access to choose from more than seven betting apps and place bets anywhere in the district.
New York Top Sports Betting Market
New York is the largest betting market in the U.S. and is set to surpass New Jersey on the lifetime leaderboard as 2025 begins. Since starting, both states have generated nearly $60 billion in total bets. However, New York didn’t launch its sports betting industry until 2022. New Jersey started taking online sports bets in 2018.
In 2024, New Yorkers bet over $22 billion, an 18% increase from 2023, bringing in more than $2 billion in revenue for operators (up 24%) and over $1 billion in state taxes. New York's market is now twice the size of any other in the country. More than one-third of all sports betting tax revenue in the U.S. comes from New York, thanks to its high 51% tax rate on gross revenue.
Online Casinos are Major Revenue Generators
The report highlights that online casino gambling generates more revenue than sports betting in the few states where it's permitted.
In New Jersey, over two-thirds of online gambling revenue comes from iGaming, striking a more balanced revenue distribution compared to other states. Michigan and West Virginia depend heavily on casino games for over 80% of their online gambling revenue, as well as a major portion of their tax revenue.
For example, in November alone, total iGaming revenue across Michigan, New Jersey, Pennsylvania, Connecticut, West Virginia, Delaware, and Rhode Island reached $714.4 million, up from $586.5 million in November 2023.
FanDuel and DraftKings dominate the online casino market, similar to their leadership in sports betting.
Online Gaming Revenue is Flourishing
The online gaming industry is experiencing unprecedented growth, with 2024 figures surpassing expert projections from early last year. The remarkable performance of online casinos and sportsbooks underscores the transformative impact of online gaming, highlighting its crucial influence on the future of the gambling sector.
If the current trajectory continues and more states legalize online casinos, 2025 could set new records for the industry.
