5 FEB 2025 · The sports betting industry in the United States has experienced rapid growth since the repeal of the Professional and Amateur Sports Protection Act (PASPA) in 2018. As of 2024, 38 states have legalized sports betting, either through retail, online, or a combination of both. This expansion has led to a significant increase in revenue, with the industry reaching a record high of $14.30 billion in 2024, up from $0.48 billion in 2018[1].
Recent market movements indicate continued growth, with the total handle, or amount wagered, reaching $142.55 billion in 2024, a 17.8% increase from 2023[5]. The gross gaming revenue (GGR) also saw a significant jump, reaching $13.26 billion in 2024, a 20.1% increase from 2023[5].
The industry's growth is driven by several factors, including the increasing adoption of mobile betting apps and online sports betting. The rise of digital innovation and expanded mobile sports betting options have made it easier for consumers to place bets, leading to a surge in revenue. Additionally, high-stakes seasons like college football, the NFL, and MLB drive revenue spikes in the sports betting industry[1].
Regulatory changes have also played a crucial role in the industry's growth. The legalization of sports betting in new states, such as North Carolina, has opened up new revenue streams and attracted both old and new bettors. However, regulatory compliance remains a challenge, with the industry facing a patchwork of laws and tax rates across different states[1].
Despite the challenges, industry leaders are responding to current challenges by investing in responsible gambling programs and expanding their offerings to meet growing consumer demand. For example, the National Council on Problem Gambling (NCPG) has emphasized the need for strict measures to identify and support at-risk users through responsible gambling programs such as self-exclusion tools and real-time intervention systems[1].
In terms of recent deals and partnerships, the industry has seen significant activity, with companies like FanDuel and DraftKings expanding their offerings and partnering with sports leagues and teams. The industry has also seen the emergence of new competitors, such as BetMGM and Caesars Sportsbook, which have entered the market with innovative products and promotions.
Looking ahead, the industry is expected to continue its growth, with projections indicating a compound annual growth rate (CAGR) of 10.73% from 2024-2029, resulting in a market volume of $23.80 billion by 2029[1]. As the industry continues to evolve, it is essential for stakeholders to address the challenges and opportunities that arise, including regulatory compliance, responsible gambling, and emerging technologies.
In conclusion, the sports betting industry in the United States is experiencing rapid growth, driven by the increasing adoption of mobile betting apps and online sports betting, as well as regulatory changes and high-stakes seasons. Industry leaders are responding to current challenges by investing in responsible gambling programs and expanding their offerings to meet growing consumer demand. As the industry continues to evolve, it is essential for stakeholders to address the challenges and opportunities that arise, including regulatory compliance, responsible gambling, and emerging technologies.