US sports betting industry revenues soar in 2023, 45% year on year increase
The regulated US sports betting industry posted $10.9 billion in revenue last year, contributing to an all-time high of $14.4 billion in state and local gaming taxes.
For 2023, the $10.9bn figure represented a year-on-year increase of almost 45%, as revealed by an annual report from the American Gaming Association (AGA).
The study revealed a massive $120 billion was staked on sports last year, up to around 30% on the previous 12 months which saw just over $93bn wagered.
Fresh openings were heralded in the AGA study, which outlined that the overall growth in sports gambling revenues was “largely fueled by continued maturation across most existing markets as well as several new markets, particularly in Massachusetts and Ohio.’”
The detail indicated Ohio recorded almost $937 million and Massachusetts took in $483 million.
New York remained on top for sports betting revenue last year with $1.7 billion, despite the continued absence of igaming in the betting market in the Empire State. State governor Kathy Hochul recently set out her executive budget for 2025 but there was no introduction for online gambling.
Below New York in the sportsbook revenue table were New Jersey and Illinois, which both generated $1 billion, whilst the AGA report marked Nevada in tenth place with a revenue return of $480 million.
Its betting returns come largely outside of sports as detailed by AGA Vice President of Strategic Communications & Responsibility, Cait DeBaun: “For overall gaming, Nevada is still the largest market. For sports betting, states with broader mobile options come in higher.”
The end of 2023 came with sports betting legalized and operational in 37 states as well as the District of Columbia.
New records
Other highlights from the AGA report included breakdowns of different gambling platforms.
Traditional gaming, casino slots and other table games within typical establishments grossed a record $49.4 billion in 2023, up just over 3%.
In the emerging space of gaming, there was a significant spike of 22.9% in revenues, up to $6.2 billion in the six states with full-scale legal provisions for the service.
On the continued growth and new records, AGA President and CEO Bill Miller stated: “From the traditional casino experience to online options, American adults’ demand for gaming is at an all-time high.”
“Sustaining our momentum will take unified industry efforts around combating pernicious illegal operators and growing responsible gambling efforts in tandem with the growth of the legal market, both of which the AGA is committed to lead on throughout 2024.”
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