Sports betting is a multibillion-dollar business in the US despite the industry being legal nationwide for only about three years. During the first ten months of 2021, sports betting generated over $3 billion in revenue.
Residents did over $10 billion in wagering this year, and the state earned $110 million just in tax revenue through November of last year. New Jersey and Illinois were the other top three states in terms of tax revenue gained from sports betting.
That new revenue is a major reason why so many states have adopted online sports betting. Mobile sports bettering was legalized in the US after a 2018 Supreme Court ruling. Since then, it has brought in over $871 million in tax revenue.
The major sports leagues will earn a collective $4.2 billion from widely available legal sports betting, further proving that working together with the gaming industry will pay dividends for all sports stakeholders. Legal sports betting will also create substantial opportunities for state and local economies, generating tax revenue, jobs and supporting small businesses across the country.
The study analyzes the revenue streams that legal sports betting could generate for both professional leagues: revenue as a result of spending from betting operators on advertising, data and sponsorship, and revenue generated as a result of increased consumption of the leagues’ media and products.
Major League Baseball stands to gain $1.1 billion in projected revenue from legal sports betting. The National Football League will potentially see $2.3 billion in revenue from legal sports betting. Annual revenues for the National Basketball League may increase by $585 million from legal sports betting. Legal sports betting may drive $216 million in annual revenues for the National Hockey League.
The Indiana Gaming Commission reported February sports wagering revenue of nearly $17 million on Friday, barely more than half of January’s total. It appears Super Bowl wagering along the state’s eastern border contributed to another tough month for operators.
The revenue figure included a downward adjustment following promotional payouts of more than $5.4 million from operators across the state, as gross gaming revenue totalled $22.4 million. The February adjusted revenue total was down 52.3% from the previous month when a record $500 million handles helped create $35.6 million in revenue.
Handle slipped 18.2% in February to $409.1 million, which is still the fifth-highest monthly total of 30 since the Hoosier State began accepting wagers. The 4.2% hold, however, is the lowest in state history, with December’s 5.6% win rate now a short-lived record.
Indiana received more than $1.6 million in tax receipts, becoming the eighth state in the post-PASPA era to surpass $50 million in taxes generated from sports wagering, Pennsylvania, New Jersey, Illinois, New York, Nevada, Oregon, and Tennessee. Oregon is the outlier of those states in being the only one currently run by the state lottery, but DraftKings operate the sportsbook.