The American sports betting industry is on an absolute tear. In a stunning display of growth, legal sportsbooks generated a jaw-dropping $13.71 billion in revenue in 2024, according to the American Gaming Association’s annual State of the Industry report. This shatters the previous record of $11.04 billion set just one year prior in 2023. But the eye-popping numbers don’t stop there.
Bettors across the nation placed a staggering $150 billion worth of wagers in 2024, a massive 22.2% increase from the previous year. Sportsbooks managed to retain 9.3% of the betting handle, slightly edging out 2023’s 9.1% win rate. Even in the face of historically successful results for betting favorites, particularly in the NFL, the house still came out ahead.
Fourth quarter frenzy
The industry saved its best for last, with Q4 2024 claiming the crown as the most lucrative quarter in the history of legal sports betting. Sportsbooks raked in $3.66 billion in the final three months of the year, a robust 7.3% increase from Q4 2023’s then-record performance. This late surge is especially impressive considering the public’s success betting on NFL favorites throughout the season.
Online acceleration
While the rising tide of sports betting revenue lifted all boats, it was the digital sector that powered the industry to new heights. According to AGA VP of Research David Forman, 30% of total gaming revenue came from online bets and wagers in 2024. That’s up from 25% in 2023 and just 13% in 2021. The convenience and accessibility of mobile sportsbooks have expanded the player pool far beyond traditional in-person bettors.
“Last year saw brick-and-mortar revenue growth slow, while online gaming and sports betting continued to grow. These past few years have reshaped the industry, and the revenue pie, while it’s much bigger, looks very different than it used to.”
– David Forman, AGA VP of Research
Empire State of betting
New York solidified its position atop the sports betting mountain, generating a cool $2.1 billion in revenue in its first full year of operations. The Empire State accounted for over 15% of the national betting handle all on its own. Not to be outdone, Illinois leapfrogged New Jersey to claim the No. 2 spot. Both states eclipsed $1 billion in annual revenue for the first time.
Gains in mature markets
While newly launched betting markets like Ohio and Massachusetts certainly contributed to the record-setting year, Forman emphasized that the bulk of the growth came from states with more established operations. Jurisdictions like Maryland and Colorado eclipsed their 2023 performance by double digit percentages despite nearing market saturation.
“A lot of the growth really was driven by existing markets. Even markets that have been online for some time now, we saw really good growth. So really it’s getting new people into the ecosystem and then continuing to engage with folks that are already betting on sports.”
– David Forman, AGA VP of Research
Looking ahead
With the momentum of 2024’s record-breaking performance at its back, the future looks bright for the U.S. sports betting industry. Missouri appears poised to pass sports wagering legislation in 2025, though few other states have active bills in progress. The focus for operators will be to continue refining their products and marketing to maximize engagement and profitability in their current jurisdictions.
As the stigma around sports betting continues to fade and the next generation of bettors enters the fold, don’t be surprised to see handles and revenues climb to previously unfathomable heights. The $20 billion annual revenue milestone feels inevitable based on the current trajectory. At this point, it seems the sky’s the limit for sports betting in America.
