Skyrocketing Online Wagering Incomes Spread Nationwide in U.S.
Record-Breaking Online Sports Betting Revenue in Key U.S. States
The explosive growth in the online sports betting market across the United States is evident as Americans wagered an astounding $121 billion on sports in 2023 – a 30% increase from the previous year. This surge began in 2018, following the overturning of the Professional and Amateur Sports Protection Act (PASPA) by the U.S. Supreme Court, which made sports betting illegal.
States such as New Jersey, Iowa, and Michigan have led the charge, with their residents flocking to online betting alternatives even as traditional casinos reopened their doors. The continuing popularity of online betting reflects a broader trend, particularly during the pandemic when live casinos were closed for over three months.
New Jersey, in particular, has been a trailblazer in online sports betting, posting just over $214 million in internet gambling revenue in November 2023, slightly surpassing the previous record of $213 million in October. The state's combined digital gaming and sports wagering revenue achieved its best November result in over a decade.
Iowa residents set a record with $2.6 billion in sports bets for the fiscal year ending in June 2024, generating nearly $45 million in state tax revenue. Michigan also set a new state high for sports betting handle in November 2024, recording a record number of $650 million, representing a 16% increase from the previous month. The state's commercial casinos and tribal operators also benefited from online poker, roulette, and other games, posting a combined $284 million in total internet gaming revenue.
These trends suggest that the U.S. online sports betting market will continue to grow rapidly, driven by factors such as increased cross-selling between sports betting and casino gaming platforms, and the expansion of available betting options. Despite some challenges from unfavorable sports outcomes, such as the 2023 college basketball tournament (March Madness) and NFL results that favored bettors, the market is poised for further expansion.
The rise in online sports betting is not just limited to a few states – it reflects a broader trend across the U.S. In the first quarter of 2025, online sports gambling revenues for major operators like BetMGM jumped 68% year-over-year to $198 million. Similarly, US iGaming gross revenues reached record levels, with $905.6 million in March 2025 alone, representing a 26.2% increase over prior records.
As the market continues to grow, consumers are increasingly engaging with digital platforms for sports betting – a trend that is likely to continue in the coming years.
In response to the escalating online sports betting market, the casino-and-gambling industry has seen a surge in demand for casino-games beyond traditional brick-and-mortar establishments. This shift coincides with the rising popularity of sports-betting across the USA, as indicated by the record-breaking financial figures from key states like New Jersey, Iowa, and Michigan.
