The Facts and Figures Behind Gambling Taxes by US States in 2024

The Grand Canyon legalized sports betting in April 2021. In the same year, Arizona officially opened the market on September 9. The state acquired over $32.31 million in revenue in its first month. 

Bettors in Arizona must be 21 years old and older to wager legally. However, players, coaches, and referees cannot bet on their sport. 

Arizona has 15 betting sites, giving the bettors different options. In 2022, the state’s total handle grew to $6.03 billion.

The Natural State legislated sports wagers in July 2019 but only approved online and mobile sports betting in February 2022. After a month, The Natural State launched its online sportsbooks. 

There are eight sportsbooks in Arkansas. Compared to other states’ sports betting laws, AR is more lenient. In 2023, the sports betting revenue significantly increased by 106.4% compared to last year, accounting for over $37.15 million.

The Centennial State’s sports betting market launched in November 2019. Six months later, CO sportsbooks officially launched and went live.

Online sportsbooks must partner with one of the state’s casinos to operate legally, leaving more doors for online apps. With 20 online sportsbooks, the state was among the first to record a monthly handle of over $200 million in September 2020.

The Nutmeg State launched its retail and online sports betting in 2021. The state is among the smallest by land area in the US but is one of the most prominent online gambling markets, housing three online sportsbooks:

• Fanatics
• DraftKings
• FanDuel

Connecticut also has two brick-and-mortar casinos and 16 available retail sportsbooks, with the latter generating an average monthly handle of over $200 million.

Delaware was the first US state to allow sports betting after the Supreme Court repealed the PASPA in 2018. Despite the prompt action, the Diamond State only allowed online sports betting in December 2023.

The state has 1 active betting site and 3 available retail sportsbooks. Despite limited options, DE had a total handle of $605.49 million. With a tax rate of 50%, the state acquired a GGR of $118.64 million.

Florida’s sports betting market legally opened in November 2021. The state allows six sportsbooks to operate, but only one was approved to launch in the market: the Hard Rock Bet.

Hard Rock Bet, formerly Hard Rock Sportsbook, only ran for a month. After two years of unsuccessful relaunch attempts, Florida reopened its sports betting market on November 7, 2023.

On March 5, 2022, Illinois ended in-person registration. Bettors no longer have to visit brick-and-mortar casinos to sign up for sports betting.

On September 1, 2019, the Hoosier State opened its sports betting market legally. Since then, there have been 12 legal online sportsbooks in the state.

Unlike other states, Indiana prohibits eSports betting but allows college sports betting. Even with the restriction, the state accumulated a total handle in 2022 of more than $4.44 billion.

The Hawkeye State’s retail and online sportsbooks launched three months after ratifying its sports betting. William Hill and Elite Sportsbook were the first betting sites to go live, debuting on August 15, 2019.

Iowa has had 19 active sports betting operators. In January 2021, the sports betting market significantly grew after removing in-person registrations, hitting over $2 billion in annual sports bets.

The Sunflower State approved sports wagers on May 11, 2022. Land-based and online sportsbooks launched in less than three months, accounting for $22.01 million in gross revenue. 

Kansas has four commercial casinos. Each can host up to three online skins, allowing 12 mobile operators in the state.

In March 2023, the KY administration passed House Bill 551, allowing the state’s nine racetracks to partner with up to three mobile sportsbooks. Potentially, the state can have 27 online betting options. 

The Bluegrass State released its gambling provisions four months after the legalization, imposing the minimum age requirement of 18 to 21 for sports betting, depending on the operator.

Louisiana allows up to 41 sports betting sites and 20 land-based sportsbooks. As of January 2024, the state has 9 online and 12 retail sportsbooks, with a tax rate of 5% for gambling winnings.

In November 2022, the Pelican State had a handle of $268.64 million. Due to the significant winnings from baseball World Series bets, the state had a revenue loss of $25.31 million.

On November 3, 2023, Maine became the fifth US state to legalize sports betting. During the launch, the state announced it would only allow two online sportsbooks to operate: Caesars and DraftKings.

Two months after the launch, Maine had a total handle of $81,822,613 and a revenue of $9,210,353.

The Free State authorized sports gambling in 2020. After two years, the operators fully launched and went live on November 23, 2022, allowing up to 60 mobile sportsbooks.

As of February 2024, the state has 12 betting sites and 10 retail sportsbooks. Bettors must be at least 21 to participate in wagering, while 18 years and above can wage for eSports already.

The Bay State sanctioned sports betting on January 31, 2023. The state’s casinos can partner with two online operators, while racetracks can partner with one only. 

Eight online sportsbooks went live in less than two months after the launch. Regulators are against eSports wagering, but wagers on popular celebrity awards are accepted.

The Wolverine State’s sports betting market started in March 2020, introducing two retail sportsbooks: Greektown Casino and MGM Grand Detroit. In January 2021, online gambling regulations commenced, allowing 10 online sportsbooks.

Retail sportsbook betting is available in 22 out of 26 casinos in Michigan. Bettors can sign up online but must provide their social security number.

The Magnolia State was among the first areas to launch sports betting without passing new legislation. In June 2018, the Mississippi Gaming Commission (MGC) released the sports betting regulations and launched BetMGM two months later.

Winnings in any MS casinos automatically withhold 3%. Although payouts are taxable in federal, the state doesn’t require its residents to file and report their wins as income.

Montana legalized sports betting in March 2019. One year later, the industry was available on the market with one online sportsbook, Sports Bet Montana. 

The sportsbook only operates in over 1,800 retail lottery locations. Although online, the state still requires its bettors to be onsite to place their bets.

In May 2021, Nebraska legalized retail sports betting. Bettors can place their wages at any of the six local racetracks and five tribal casinos. 

Unfortunately, the state has yet to allow online betting. In-person registration is required to participate and start betting.

Nevada was one of the US states unaffected by the previous federal ban on sports betting. It was in 1949 when the Silver State legalized sports betting, 18 years after gambling became legal in the state.

NV is the homecourt of two well-known gambling cities: Reno and Las Vegas. With the two cities, the Silver State is named the gambling powerhouse in the United States.

New Hampshire legalized sports betting on July 12, 2019, with a minimum age requirement of 18 years and above. DraftKings secured the exclusivity agreement with the state of New Hampshire. 

The state has a hefty tax rate of 51%, among the highest in the US. In 2023, the sports betting revenue in New Hampshire reached over $36.86 billion, experiencing a 54.12% growth from 2022 revenue share.

The Garden State authorized its sports betting market in June 2018. After over 3 years, NJ became the sports betting capital of the US when it successively hit a billion-dollar handle.

From September 2021 to January 2022, NJ’s monthly total bets were over $1 billion. Bettors wagered more in the state due to NJ’s lenient and liberal gambling laws.

New Mexico has had no formal law regarding the state’s legalization of sports betting since October 2018. However, out of 28 tribal casinos in New Mexico, five offer sports wagers.  

The residents of New Mexico are free to gamble on sports but must be physically present to place a wager. Hence, online sports betting is prohibited.

The Big Apple’s online sportsbooks launched on January 8, 2022. In one month of operation, the NY surpassed New Jersey’s $1.3 billion handle, stealing the latter’s “US Sports Betting Capital” title.

By monthly handle, the Big Apple has become the US’s biggest sports betting market, with a total revenue of $1.6 billion in January 2022. Among US states, NY imposes a heavier tax rate on sports betting at 51%.

The Tar Heel’s in-person sports betting opened in 2019. It took two years for the state to have its first legal wagers. Bettors can wager at any of the three authorized tribal casinos.

Online and mobile sports betting legislation commenced on January 8, 2024. Regulators set a deadline of January 26, 2024, for the applicants for the interactive betting licenses.

North Dakota’s betting industry legally opened in December 2021. The provisions for the state’s gambling laws require bettors to wager in person in any of the three tribal casinos:

• Dakota Magic Casino
• Dakota Connection
• Dakota Sioux

To purchase a lottery ticket in the state, gamblers must reach the minimum age requirement of 18. For wagers on horse racing or entering a casino, bettors must be 21 years old and above.

In December 2021, the Ohioan government legislated the sports betting bill. On January 1, 2023, the Buckeye State officially launched its sports betting scene.

The legal age to wager is 21 years old and above. Bettors must be physically present at any of the state’s four casinos and seven racinos to participate in gambling.

Horse racing has always been popular in Oregon. Since 1997, the state has allowed out-of-state race betting. In 2024, bettors can wage to any five locations for live horse racing.

Remote registration is available to bettors. However, there is only one sports betting app. The state holds 8.9% on every payout, higher than its neighboring state, Nevada.

In 2017, Pennsylvania sports betting officially opened. It took over a year for a sportsbook to operate. Hollywood Casino was the first casino to accept sports bets in November 2018. 

Bettors can wager at any of the 13 sportsbooks in PA. Online sportsbooks must partner with any of the state’s 17 available brick-and-mortar casinos for remote registration.

Due to the convenience Keystone State’s betting laws and taxing scheme offer, the state generated a total handle of $7,682,694,849 in 2023.

Rhode Island is among the US states with the highest tax rate, at 51%. The state’s sports betting commenced in June 2018 and opened five months later. Only on July 28, 2020, did the state lift the ban on in-person sports bets.

The state has one online sportsbook, Sportsbook Rhode Island. Remote registration has been available since the state issued new legislation in 2020. 

Sports betting is available at two state casinos, the RI Lottery outposts. The deal is they pay the state a 51% tax rate while the state provides more support and equipment.

Retail betting was the only legal form of gambling in South Dakota in 2020. However, the state legalized sports betting in September 2021. 

Legal in-person sports betting launched in South Dakota in September 2021. The state’s sports betting handle reached over $1 billion in October 2023 for the first time since its launch.

Tennessee began its online sports betting market on November 1, 2020, allowing unlimited licenses. Regulators adopted permanent online bets only on March 10, 2022. 

The Volunteer State initially set its tax rate to 20%. However, the 2023 legislation changed the rate to a 1.85% tax on each operator.

Vermont’s sports betting legally opened on January 11, 2024. The state allows up to six betting licenses, with a minimum age requirement for bettors of 21 years old. 

On December 12, 2023, Vermont regulators approved three sports betting operators out of five applications.

Online sports betting initially opened in Virginia in January 2021. In the first year of the business, the state acquired $58,896,564. Eighteen months later, retail sports betting followed, with a tax rate of 15%.

Remote registration is legal for 16 sportsbooks in Virginia. Bettors must be at least 21 years old to participate in waging.

On September 9, 2021, Washington officially launched its sports betting market, which is exclusively legal in the state’s tribal casinos. These native casinos consist of 14 retail sportsbooks open to the public. 

The state’s minimum betting age is 18. If the establishment sells alcohol, the age requirement is 21 years old. Although Washington does not collect a gambling tax, sports betting payouts are subject to income tax. 

Operators withhold tax of 25% of all winnings, provided that the bettors give their SSN. Else, the tax rate goes up to 28%.

The Washington DC government signed its sports betting bill on January 19, 2019. After over a year of legalization, the sports betting market commenced on May 28, 2020. 

Bettors can gamble on the three legal betting sites. The app and website are run by the DC Lottery and regulated by the DC Office of Lottery and Gaming.

On March 2, 2018, West Virginia passed robust regulations for its sports betting industry. The state officially launched the market on August 26, 2019. 

The Mountain State’s lenient betting regulation allows eSports and college sports bets. Bettors at least 21 can place bets on nine betting sites. With lenient regulations and multiple betting options, the state’s gambling revenue has been consistent in figures. In 2023, the revenue reached almost $2.5 million, with the highest recorded revenue of $6.3 million.

The Badger State has one betting site, which legally operated on November 30, 2021. The state requires its bettors to register in person, exclusive to Oneida Casino in Green Bay.

The state’s legal gambling age for charitable games and the state lottery is 18. However, for tribal casinos, the minimum age requirement is 21.

WI doesn’t have a regulatory body for sports betting. Instead, three native tribes control the state’s gambling industry, namely:

• Oneida Indian Nation
• St. Croix Chippewa
• Potawatomi Nation

The Equality State permitted sports betting on April 5, 2021. Five months later, online sportsbook operators went live on September 1, 2021. 

WY only allows online sportsbooks with a maximum of five sports wagering licenses. Despite no retail sportsbooks, the state accumulated a combined handle of $172,247,302 in 2023. 

As of February 2024, Wyoming boasts four legal sports betting sites, among the best in the nation: 

• DraftKings
• FanDuel
• BetMGM
• Caesars

The Garden State fought against PASPA by repealing the ban on sports betting. It was a long fight, and after numerous attempts, the state finally claimed victory in 2018. 

Shortly after the US government overturned PASPA, NJ legally opened sports bets. The state proved that sports wagers are profitable when NJ reached a $1 billion gross revenue in 2023. 

Despite the pandemic forcing casinos to shut down, NJ sports betting gross revenue increased by 33.01% compared to 2019. The game changer was the state’s online betting, allowing residents to register online.

Pennsylvania was the fourth state to legalize sports betting in 2018. The sports betting market has grown since 2019, with a high tax rate of 36% accounting for a revenue of over $111 million.

The Keystone was among the US states that thrived during the pandemic, with a gross revenue of $269,903,946 in 2020. The main driver of its sports betting industry was online sportsbooks, which accounted for 94% of wages. 

Though PA overcame 2020, the state experienced a negative tax record in February 2022, gaining over $22 million in gross revenue. Still, the operators had a sports betting loss, resulting in a negative $159,425 tax.

Rhode Island is one of the states that legalized gambling right after the US government lifted the ban. RI bettors have limited options to wager, allowing two retail sportsbooks and one online betting platform. In February 2019, the casinos in RI lost $890,623 on sports betting. The state lottery paid out the winning bets of nearly $21.6 million for the Super Bowl and other professional sports. On the other hand, the total wage was only $20.7 million.

New York is the most populated state to legalize sports betting. The state was quick to allow sports betting but slow to sanction online bets. Due to COVID-19, New York experienced a monthly loss for the first time. 

NY sports betting struggled in 2020, with negative revenue in February and zero income from April to August. However, the sports betting industry strived as soon as the operation resumed in September 2020, generating a tax revenue of $1.4 million. 

With the launch of online betting in 2022, the New York sports betting market has flourished. In 2023, the state had collected the most taxes of all time, acquiring over $1.5 billion.

In March 2020, Michigan launched its sportsbook. A few weeks later, sports betting in Michigan closed due to the pandemic. Online sportsbooks had yet to open at that time, not until January 2021.

Only in the first month of online bets did it have a handling percentage below 80%. The following month, in February 2021, online sports betting rose to over 90%.

The Wolverine State’s sports betting industry has since maintained its increasing gross revenue, with no signs of slowing down.

Delaware’s sports betting scene has been operating since 2009, among the four grandfathered states with sports wagering exempted under PASPA’s restrictions. After the US repealed PASPA, the Diamond State was the first to legalize sports bets.

In three consecutive years since 2019, Delaware experienced revenue loss. Aside from that, the state had zero income for three months straight during the pandemic. 

Despite the negative revenue, the market from 2019 to 2021 was still high. The following years, 2022 to 2023, were experiencing a decrease in revenue.

The Centennial State taxes its sports betting operators at a 10% rate of their net revenues. The state also allows licensees a promotional credit deduction. In 2024, operators can only deduct up to 2.5% of their handle.

Listed are the most prominent sports betting brands.

• BetMGM
• BetRivers
• DraftKings
• FanDuel

In October 2022, Illinois became the fourth state to achieve a $1 billion monthly handle. The state sits at the top of the sports betting market in the US. The Prarie State also ranks among the top 10 largest worldwide. 

On March 9, 2020, the Prairie State launched its physical sportsbooks. The state’s sports betting industry had zero revenue for the next two months due to the pandemic. 

The industry has grown with the state’s legalization of online sports betting on June 18, 2020. When the state allowed in-person registration in March 2022, the revenue reached $1 billion.

NH’s sports betting has continuously grown since its launch in December 2019. Despite the pandemic, the state’s sports betting significantly grew, amounting to over $292.55 million. 

After robust year-over-year growth in handle, the market experienced a decline of 7.85% in 2023 from the previous year. However, with a hefty tax rate of 51%, the gross revenue was unaffected by the decrease in total bets.

In 2023, the Granite State had a gross revenue of $80.28 million, a 20.34% increase compared to 2022.

Indiana offers one of the lowest tax rates on online sports betting. Basketball is the state’s residents’ sport of choice, drawing $133.1 million in bets.

From March to June 2020, the market value decreased. However, with Unibet gaining market access to Indiana, the 4-month downturn reversed with a 157.94% increase in August 2020. 

In 2023, Indiana ranked sixth in gross revenue, accounting for $1.27 million. While November 2023 had the highest handle of over $513.67 million, December had the biggest collected revenue, totaling $54.6 million.

In November 2023, the sports betting market in Tennessee hit a new record, with a monthly handle of $517.14 million and revenue of $51.71 million. After hitting a new record, the market had a 4.27% drop in December 2023. 

• Handle: $495,067,783
• Gross Revenue: $49,506,778

West Virginia passed laws allowing sports bets before the US Supreme Court. The state anticipated the fall of PASPA and became the fifth state to permit sports betting. 

In December 2018, the state was ahead of the curve in launching online sportsbooks. It boosted West Virginia’s sports betting market, resulting in a 30% increase in January 2019. 

Sports betting is big in WV despite not having a pro sports team. The state’s first full year of legal sports betting handle reached over $228 million in 2019 and doubled in the next year.