Breakdown of Sports Betting Highlights Revealed in Last Year's Figures
In 2023, the U.S. sports betting market experienced unprecedented growth, with a record-breaking revenue of $11.05 billion[1][5]. This represented a significant increase from the previous years, with revenue of about $7.56 billion in 2022 and $4.34 billion in 2021[1].
The total betting handle (amount wagered) for 2023 was approximately $121 billion, with an average hold percentage (operator margin) of around 9.1%[5]. Key milestones in 2023 included:
- Nevada approaching a historic cumulative betting handle near $50 billion since 2018[2].
- New Hampshire closing in on a total handle of $4 billion since launching sports betting, with $821 million wagered in 2023 generating $80.3 million revenue[2].
- Connecticut nearing $7 billion in total sports bets placed and West Virginia hitting almost $25 billion in cumulative handle[2].
- Monthly revenue peaks in 2023 with September and October each exceeding $11.5 billion in handle and around $1.2 billion in gross revenue in those months alone[5].
- New York sportsbooks' strong performance continued, with July 2023 revenue at about $155.9 million on $1.41 billion wagers[4].
Several states made significant strides in 2023. New York accounted for more than 41% of the $2.08 billion in state taxes generated from operator revenue[1]. New York, Maryland, and Louisiana entered the mobile betting space in 2022[1]. New York became the first state to reach a $2 billion monthly handle in 2023[1].
The 51% tax on mobile revenue in New York is currently 38.2% higher and within $27 million of reaching 40%[1]. Massachusetts' digital debut in time for the NCAA Tournament in March put that month's total within $250 million of January's record[1].
Eight states have totaled at least $75 million in tax revenue compared to only four in 2022[1]. Six states had at least $9 million in full-year increases versus 2022[1]. The overall amount generated in 2023 could wind up being approximately 47% of the projected all-time total of $4.6 billion[1].
Five states collected $100 million-plus in tax revenue, with Ohio having the largest simultaneous launch in the post-PASPA era in 2023[1]. Illinois' sports betting handle in November 2023 was nearly $1.38 billion[1]. The Buckeye State's sports betting handle was $11.5 billion in 2023[1]. Another nine states saw tax revenue increase between $1 million and $5 million[1].
The all-time sports wagering handle surpassed $300 billion in 2023[1]. The total gross operator revenue in 2023 surpassed $10 billion and $25 billion respectively[1][5]. Sixteen states set all-time handle highs in monthly handle in 2023[1].
Overall, 2023 was a year of continued expansion and maturation in the U.S. sports betting market, setting new revenue and handle records with multiple states approaching key cumulative milestones[1][2][5].
[1] - Source: American Gaming Association [2] - Source: Legal Sports Report [4] - Source: PlayNJ [5] - Source: Sports Handle
- The U.S. sports betting market, in 2023, recorded an unprecedented growth, with a total wager of about $121 billion and a revenue of $11.05 billion.
- In the same year, the line between sports and finance blurred further as states like New York, Maryland, and Louisiana entered the sports-betting market, generating significant tax revenues.
- A parlay of milestones was achieved in 2023, with numerous states approaching key cumulative milestones and setting new monthly handle records, such as New York reaching a $2 billion monthly handle.
- The boom in sports betting led to a surge in revenue, with five states collecting over $100 million in tax revenue, and Ohio having the largest simultaneous launch in the post-PASPA era. This explosion in sports betting resulted in the all-time sports wagering handle surpassing $300 billion in 2023.
