United States Sports Betting Market Forecast (2025–2033)
The United States Sports Betting Market is on a rapid growth trajectory, projected to reach US$ 67.19 billion by 2033, up from US$ 29.64 billion in 2024, growing at a compound annual growth rate (CAGR) of 9.52% between 2025 and 2033, according to recent industry analysis.
This expansion is fueled by the continued legalization of sports betting across U.S. states, the rise of mobile and digital wagering platforms, growing consumer acceptance, and the integration of betting operations with major sports leagues. The convergence of data analytics, live in-game wagering, and advanced digital tools has transformed the sector from a niche pastime into a mainstream entertainment and economic powerhouse.
Since the repeal of the Professional and Amateur Sports Protection Act (PASPA) by the U.S. Supreme Court in 2018, the industry has entered a new era of growth and innovation. With individual states empowered to regulate and license sports betting, operators have rushed to expand market share, while states have benefited from a surge in tax revenues, job creation, and tourism spending tied to sports wagering.
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United States Sports Betting Industry Overview
Sports betting involves predicting outcomes of sports events and placing wagers through retail sportsbooks or online platforms. Bettors can engage with a range of sports — from football, basketball, and baseball to horse racing and eSports — and participate in diverse bet types such as moneylines, spreads, parlays, and live in-game betting.
The modern betting landscape combines real-time data, AI-driven analytics, and mobile applications to offer seamless, immersive user experiences. Legalization has not only legitimized the market but has also accelerated technological adoption, innovation in betting formats, and cross-industry partnerships that enhance both sports engagement and entertainment value.
Key Growth Drivers in the U.S. Sports Betting Market
Legalization Expansion
The driving force behind the market’s growth is the state-by-state legalization of sports betting following the PASPA repeal in 2018. This shift allowed each state to develop its own regulatory and tax frameworks, unlocking new regional markets. As of 2025, more than 35 states have legalized sports betting in some form, with several more debating legislation.
Legalization brings tangible economic benefits. States have recognized that regulated sports betting boosts tax revenue, local investment, and job creation, while simultaneously reducing illegal gambling.
A notable milestone came in July 2024, when DraftKings Inc. announced plans to launch its online sportsbook in Washington, D.C., pending regulatory approval. Such expansions illustrate the continuing momentum toward nationwide legalization. As additional states join the regulated landscape, the market is poised for sustained, broad-based growth.
Technological Advancements
Technology is the foundation of modern sports betting, driving engagement, innovation, and security. Artificial intelligence, machine learning, and predictive analytics now enable personalized betting experiences, dynamic odds, and real-time wagering.
Mobile platforms have revolutionized accessibility, allowing users to bet instantly and securely from anywhere. The integration of cloud computing and blockchain enhances transparency, while secure payment solutions and digital wallets improve transaction reliability.
In addition, technology supports responsible gaming by enabling behavioral monitoring, deposit limits, and self-exclusion features. Live-streaming and virtual environments are making betting more interactive, while AI algorithms enhance fraud detection and regulatory compliance. Together, these developments position the U.S. sports betting industry at the forefront of digital entertainment.
Strategic Partnerships
Strategic partnerships between sports leagues, franchises, and betting operators are a defining feature of the current landscape. Such collaborations strengthen brand visibility, deepen fan engagement, and enhance market legitimacy.
A key example occurred in March 2025, when the St. Louis Cardinals signed a multi-year marketing deal with bet365, designating it as the team’s Official Mobile Sports Betting Partner. The agreement includes branding on digital platforms, radio broadcasts, and prominent stadium signage, demonstrating how betting operators are embedding themselves into mainstream sports culture.
These partnerships also help steer bettors toward licensed operators, fostering responsible gaming and reinforcing regulated market credibility. As more franchises pursue such collaborations, the synergy between sports entertainment and betting is expected to deepen, fueling nationwide growth and consumer trust.
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Challenges Facing the U.S. Sports Betting Market
Regulatory Complexity
One of the industry’s largest obstacles is the fragmented regulatory landscape. Because sports betting regulations vary from state to state, operators must navigate a patchwork of tax rates, licensing procedures, and advertising rules.
For example, while some states permit mobile-only betting, others restrict it to physical sportsbooks. This inconsistency complicates nationwide expansion and raises operating costs.
Large states like California and Texas — which remain unregulated — represent huge opportunities but also significant uncertainty. Without uniform federal standards, companies must continually adapt to differing local laws, creating inefficiencies that particularly burden smaller operators.
Problem Gambling and Responsible Gaming
The rapid growth of mobile betting has intensified concerns about problem gambling and addiction. Easy access through smartphones and 24/7 availability can lead to excessive play and financial harm for vulnerable users.
Regulators and operators are increasingly focused on responsible gaming initiatives, including deposit limits, self-exclusion programs, and real-time behavioral analytics. However, the effectiveness of these measures varies by state.
Failure to address these concerns could invite regulatory backlash or slow the pace of legalization in remaining states. Sustainable growth will depend on maintaining a careful balance between market expansion and consumer protection.
Key State Markets Driving U.S. Growth
California
California represents the most significant untapped sports betting market in the United States. Despite its massive population, thriving sports culture, and robust digital infrastructure, the state remains unregulated due to legislative and tribal disagreements.
Once legalized, the state’s sports ecosystem — featuring franchises like the Lakers, 49ers, and Dodgers — offers a goldmine of marketing potential for sportsbooks. Mobile betting is expected to dominate, leveraging Silicon Valley’s technological expertise. California’s entry into the regulated market could generate billions in annual revenue, support education funding, and curtail illegal gambling activities.
Texas
Texas also stands as a potential sports betting powerhouse. With a booming economy, passionate fan base, and major franchises such as the Cowboys and Mavericks, the state is ideal for sports wagering.
Though currently unregulated, legislative discussions and increasing public support signal growing momentum. Economic incentives, including potential billions in tax revenue, could soon shift political resistance. Once legalized, Texas could rank among the largest state betting markets, powered by digital innovation and tourism-driven spending.
New York
Since legalizing mobile sports betting in 2022, New York has become a leading U.S. market, generating record-breaking tax revenues. Major operators like FanDuel, DraftKings, and Caesars have dominated early adoption through aggressive marketing and local partnerships with teams such as the Knicks and Yankees.
With its dense population and proximity to New Jersey, New York’s market remains one of the most lucrative and competitive. Ongoing innovations in live in-play betting and user personalization are expected to sustain its leadership through 2033.
Florida
Florida’s sports betting journey has been turbulent but promising. After briefly launching operations in 2021 under an agreement with the Seminole Tribe, legal challenges temporarily paused activity. Recent court decisions, however, have revived momentum toward full legalization.
Florida’s tourism industry, passionate fan base, and population size make it a critical growth frontier. Once fully legalized, Florida could generate billions annually and solidify its position as one of the nation’s top sports betting markets.
Recent Developments in the United States Sports Betting Market
· July 2024: BetMGM expanded its mobile operations across Washington, D.C., after local regulatory liberalization, offering district-wide access and intensifying competition.
· March 2024: ESPN BET launched in North Carolina, marking its first major state expansion under its partnership with PENN Entertainment. This rollout strengthens ESPN’s footprint in legal sports betting nationwide.
These developments reflect the industry’s ongoing momentum toward digital expansion, cross-platform integration, and brand diversification.
United States Sports Betting Market Segmentation
By Platform
· Offline
· Online
By Betting Type
· Fixed Odds Wagering
· Exchange Betting
· Live/In-Play Betting
· Pari-Mutuel
· eSports Betting
· Others
By Sports Type
· Football
· Basketball
· Baseball
· Horse Racing
· Cricket
· Hockey
· Others
By State (Market Breakup)
California, Texas, New York, Florida, Illinois, Pennsylvania, Ohio, Georgia, New Jersey, Washington, North Carolina, Massachusetts, Virginia, Michigan, Maryland, Colorado, Tennessee, Indiana, Arizona, Minnesota, Wisconsin, Missouri, Connecticut, South Carolina, Oregon, Louisiana, Alabama, Kentucky, and Rest of the United States.
Key Companies Covered
888 Holdings PLC, Bet365 Group Ltd., Bet-at-home.com AG, Betfred USA Sports, Betsson AB, DraftKings Inc., Entain plc, Flutter Entertainment plc, International Game Technology PLC, and Kindred Group plc.
Conclusion
The United States Sports Betting Market is transforming into a cornerstone of digital entertainment, merging sports, data analytics, and financial technology. Projected to reach US$ 67.19 billion by 2033, the sector’s success is anchored in the continued expansion of legalization, technological innovation, and strategic partnerships.
However, regulatory fragmentation and problem gambling remain pressing issues. States that balance economic opportunity with responsible gaming policies will define the future of this industry.
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